Senate votes to overturn rule against racial discrimination in auto loans

The US Senate on Wednesday passed a resolution [text, PDF] expressing disapproval for a rule intended to prevent racial discrimination in auto loans.

The original rule was issued [bulletin, PDF] in 2013 by the Consumer Financial Protection Bureau (CFPB) and was titled the “Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act.” Under this rule, automobile lenders were not allowed to discriminate against minorities by increasing their interest rates or otherwise charging them higher fees.

Congress is able to overturn these kinds of rules under the Congressional Review Act [text].

The Senate voted [roll call vote] to overturn this rule, 51-47, with 2 members not voting. The decision whether to repeal the rule is now in the House, where it has yet to be taken up.

About: Shawn

Shawn Shah is an expert legal analyst, lawyer, and journalist.

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