ABA Resolution 104B Withdrawn Amid Opposition

The American Bar Association proposed Resolution 104B this past July to urge policymakers to adopt specific regulations governing auto dealerships and vehicle financing.  While the Resolution failed to win approval, it is not necessarily dead.

As proposed, Resolution 10B would do five things:

1. Urge federal, state, local, territorial, and tribal governments to "adopt and enforce stronger fair lending laws targeted to discrimination in the vehicle sales market";
2. Urge Congress to amend the Equal Credit Opportunity Act to require the collection of the applicant's race and national origin in vehicle financing transactions;
3. Urge Congress and all state, local, territorial, and tribal legislative bodies and government agencies to adopt laws and policies that "require a flat percentage fee for dealer compensation" and "disclosure of dealer compensation" in vehicle financing transactions;