The American Financial Services Association (AFSA) has expressed disagreement with a report from the Consumer Financial Protection Bureau (CFPB) regarding servicemember auto financing. The AFSA's statement, released on January 30 via its website, argues that the CFPB's findings are based on limited data and fail to consider consumer choices.
"Pay higher costs and face greater financial risks," said Bill Himpler, President and CEO. "Servicemembers are being disadvantaged somehow, but a closer look reveals methodological shortcomings in the CFPB's analysis."
According to the AFSA, the CFPB report relies on information from only six lenders and overlooks important consumer decisions. The association contends that higher interest rates and fees for servicemembers are linked to factors such as lower down payments, longer loan terms, and shorter credit histories rather than unfair lending practices. The AFSA describes the report as misleading and unhelpful, asserting that vehicle finance products remain competitive and widely available.
The CFPB report highlights concerns about military borrowers facing aggressive lending practices and being more prone to negative equity trade-ins. It also points out that deceptive lending tactics, including inflated loan costs, misleading add-ons, and unfair financing terms, disproportionately affect servicemembers who may be young, distant from family support, and required to have personal vehicles for their duties.
The TABS Act, supported by the AFSA, aims to place the CFPB under congressional oversight by shifting its funding from the Federal Reserve to the appropriations process. Introduced by Representative Andy Barr of Kentucky's 6th District (KY-06), this bill seeks to enhance transparency, accountability, and regulatory clarity while ensuring access to affordable credit. This information was reported by American Credit News.
Himpler has served as the President of AFSA since 2018. He is a former official at the Department of Housing and Urban Development (HUD), lobbyist, and congressional aide with academic credentials from Steubenville University, Dominican House of Studies, and Catholic University.