DISCRIMINATION IN AUTO LENDING:

Voting 51 for and 47 against, the Senate on April 18 approved repeal of an action by the Consumer Financial Protection Bureau against “third party” car and truck loans that impose interest rates on minority borrowers that are higher than those offered other similarly qualified borrowers. Backers of the repeal measure (SJ Res 57) said the bureau is prohibited by the 2010 Dodd-Frank law from regulating auto dealerships. But the bureau warned lenders in 2013 that they are responsible under the 1974 Equal Credit Opportunity Act for any discriminatory pricing of auto loans. The bureau said that law prohibits creditors from discriminating based on race, color, religion, national origin, sex, marital status or age.

Although the consumer bureau did not issue a formal rule on auto lending, critics say the 2013 guidance is essentially the same as a regulation, and is therefore subject to repeal under the Congressional Review Act. This would greatly expand the scope of the review act, which to date has been used only to nullify actual regulations within 60 working days of their effective date.

Under third-party lending, finance companies originate loans that dealers arrange for their customers, with dealers adding a markup to the interest rate and sharing in interest proceeds. Next to home mortgages and student loans, auto loans are the third-largest source of household debt in the United States.

Jerry Moran, R-Kan., said the repeal would correct a mistake by the consumer bureau but “not do anything to change the prohibition, the illegality of discriminating against a person based upon that person’s race.”

Sherrod Brown, D-Ohio, said, “This repeal could permanently weaken federal anti-discrimination laws. These are the laws that brave Americans fought for during the civil rights movement.”

A yes vote was to send the repeal measure to the House.

ARKANSAS

Voting yes: Tom Cotton, R, John Boozman, R

TEXAS

Voting yes: John Cornyn, R, Ted Cruz, R