Underneath the headline it reads, “The Center for Responsible Lending says car buyers pay an extra $20 billion a year because dealers routinely mark up the interest rate of loans they broker.”
The organization says interest-rate markups are excessive -- even though they're within legal limits and below the cap set by the lender.
On its Web site, the group refers to these markups as “kickbacks” and “overcharges.” A spokeswoman reiterated that sentiment when I discussed it with her.
The Center for Responsible Lending lobbies state legislatures and Congress. It sent out a press release saying that “auto dealers’ lending abuses cost billions.”
No wonder dealers find it necessary to keep politically active.