Providing for Congressional Disapproval of A Rule Submitted By Bureau of Consumer Financial Protection
Floor Speech
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Mr. ELLISON. Mr. Speaker, I thank the ranking member.
Mr. Speaker, the Congress today is going to be voting on whether or not to make it easier for dealers making car loans to offer better prices to borrowers based on the color of their skin. The majority wants you to vote, yeah, they can. We say they shouldn't. We say all Americans should be treated equally, and we think that the CFPB should be allowed to make sure that that is true.
You know, it is clear, minority buyers pay more. This has been found in any number of statistical ways. In a recent settlement with a large auto dealer, the Department of Justice and the CFPB found that 235,000 minority borrowers were paying higher rates. African-American, Asian, and Latino borrowers were paying between $200 and $300 more per loan compared to White borrowers.
Now, some of us believe in liberty and justice for all. Some of us believe in equal protection under the law. I believe that it is absolutely the wrong policy for us to second-guess the CFPB today, and I urge a ``no'' vote.
This is a fact that this disparate treatment in borrowing and rates and prices is even true when minority borrowers had the same or better credit than White borrowers. So the CFPB cracked down, and they issued guidance, which is what we would expect them to do. In fact, in total, they made sure that over--almost $12 billion has gone back to consumers, a fact which I think, for my Republican friends, really upsets them.
But guidance was set to ensure that lenders were complying with the law, which makes discrimination in auto lending illegal. They also brought cases and recovered millions for borrowers: Ally Financial paid back $80 million in recovery for victims of discrimination; American Honda Finance Corporation, $24 million; Toyota Motor Credit Corporation, $21.9 million; Fifth Third Bank, $18 million.
Now, are we to believe that these institutions, run by some of the most sophisticated businesspeople and lawyers in America, are just handing out checks for nothing? They are paying settlements because why not? They have probably got more lawyers in one of these places than they do in the CFPB.
Now, the bottom line is these folks paid out because they needed to settle. They had exposure. This move today by the majority in the Financial Services Committee is to say: Go ahead. Don't worry about discrimination. We have got your back.
We are not going to stand here and let Americans get treated like second-class citizens, though.
The new system is working well, so, naturally, some folks want to change it. So, Republicans, I ask you guys to vote ``no'' on this thing. I want you to join us in telling Americans that everybody should be treated equally.
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