ORLANDO -- Auto lenders and dealers are so worried about the new Consumer Financial Protection Bureau that they could overlook a couple of more familiar but still toothy watchdogs, namely the Federal Trade Commission and the Department of Justice, some industry watchers say.
"The FTC has been deeply embarrassed because they used to be the consumer protection agency," said Andrew Sandler, chairman of Washington-based law firm BuckleySandler, at the Consumer Bankers Association "CBA Live" conference here this month. "They're bound and determined to demonstrate that they, too, are a serious enforcement agency. If you're in the auto business, you should be spending some quality time with your good friends from the Federal Trade Commission."
Starting July 21, the new Consumer Financial Protection Bureau is scheduled to take over many aspects of regulating auto lending. Some of those responsibilities are inherited from other agencies. The precise impact is yet to be determined, but in some ways the Consumer Financial Protection Bureau supersedes the FTC.