President Trump signed a bill allowing auto dealers to charge interest rates that critics say are racially biased. The new law rolls back a rule put in place five years ago.
Back in 2013, the Consumer Financial Protection Bureau found that black and Hispanic car shoppers were quoted higher interest rates for cars than white buyers. Auto dealers criticize those reports and deny that discrimination occurs. They say the rule actually raises interest on all consumers. Congressional Republicans and Trump agreed.
Lisa Rice, president of the National Fair Housing Alliance, counters that claim. “[W]hat Trump is saying is that my administration will not hold you accountable if you are discriminating against consumers who are trying to get an auto loan.”
The new law is a novel interpretation of the Congressional Review Act, which allows rules from the previous administration to be undone.
