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54 House Dems Buck Obama Admin On Auto Loan Bias Suits – Investors.com

After extracting $180 million from Honda (NYSE:HMC), Ally Financial (NYSE:ALLY) and other auto lenders to settle racial discrimination charges, the Obama administration has set its sights on reordering the auto finance industry. But even many Democrats think that its attacking a phantom foe and will end up hurting car buyers.

More than 50 Democratic lawmakers — including Democratic National Committee chief Rep. Debbie Wasserman-Schultz and some Congressional Black Caucus members — have signed onto a GOP bill that restricts the administrations use of a low-proof legal theory as a basis for filing race bias claims vs. auto lenders. HR 1737 now has 123 co-sponsors and has been taken up by the House Committee on Financial Services.

American consumers had 87.4 million outstanding auto loans valued at nearly $900 billion in 2014, according to the Consumer Financial Protection Bureau (CFPB).

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