Harley-Davidson is lining up with Wisconsin car dealers to lobby for an exemption from new federal lending rules that would affect its financial services arm, and consumer credit availability.
The U.S. Senate will debate the issue soon as part of the financial regulation package.
The Senate bill would treat vehicle loans the same as bank loans and credit cards. But car dealers say they’re already heavily-regulated at the state level and that new regulations would drive up consumer credit costs.
Milwaukee area car dealer Russ Darrow Jr. told radio station WTAQ the dealer is just the conduit between the buyer and the financial institution. But Kathleen Day of the Center for Responsible Lending says it’s the point of sale where consumer problems occur – and the law should treat all institutions that grant loans equally.
The House exempted car dealers when it passed its financial industry reform package.
Posted by Holly Wagner