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Sept. 20, 2013 – The National Automobile Dealers Association is pushing back against the CFPB's criticism of dealer discretion in setting consumer interest rates, including in indirect lending arrangements, and is lobbying lawmakers to join them, according to Automotive News.

At a Finance & Insurance conference, NADA Chairman David Westcott told attendees that "the CFPB's insistence on flat fees would make financing more expensive and less accessible."

The article said the CFPB "has sharpened the message that lenders ought to choose one or the other: flat fees or closer supervision of dealerships."

In the compliance bulletin the CFPB put out in March, the agency focused on the potential for pricing disparities on the basis of race, national origin and possibly other prohibited factors by dealers that facilitate funding for consumers' auto purchases through indirect lenders. If there are disparities within the indirect lender's portfolio, it said, lenders may be liable under the legal doctrines of both disparate treatment and disparate impact.

NAFCU has expressed concern about the bulletin, noting the association strongly advocates fair lending and saying credit unions should not be held liable for others' actions.