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Visit Our Website
www.IllinoisDealers.com
Join our mailing list!
Do you know of other member dealership employees who should be receiving the IADA Electronic Bulletins? Let us know! Send an email to Meghan Sander (msander@illinoisdealers.com), Director of Communication, with the contact information of people who should be on our distribution list.
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2013 IADA OFFICERS
Chairman
Gary Knight
Carmack Car Capitol
Danville
Vice Chairman
Mike Mangold
Mangold Ford
Eureka
Treasurer
Dave Taylor
Taylor Chrysler Dodge & Jeep, Inc.
Bourbonnais
Secretary
Sam Roberts
Roberts Motors, Inc.
Alton
President
Peter Sander
IADA
Springfield
IADA Staff Contacts:
Ph# 1-800-252-8944
Pete Sander
President
Ext. 103
psander@illinoisdealers.com
Larry Doll
Legal
Ext. 105
ldoll@illinoisdealers.com
Mark Harting
Administrative Services
Ext. 110
mharting@illinoisdealers.com
Mike Healey
Member Services
Ext. 107
mhealey@illinoisdealers.com
Joe McMahon
Legislative
Ext. 113
jmcmahon@illinoisdealers.com
Meghan Sander
Member Communications
Ext. 109
msander@illinoisdealers.com
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Your
IADA
Partner
Moving Vehicle Registration Into The Future
(click logo for more details)
Upcoming Webinars
January 9th
Rich Holland
How to "Read Your Service Customer's Mind" to Promote Retention and Satisfactions (12 PM CST)
Click here to register!
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January 16th
AJ Maida
It's About the People, People! (12 PM CST)
Click here to register!
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December 29, 2013 Vol 2013, Issue 26
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IADA HOLIDAY WISHES
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Wishing you and your family a safe and Happy New Year! As a reminder, IADA will be closed on the following:
December 31st: Closing at 3:00pm
January 1: CLOSED
A reminder IADA is available 24/7 at www.illinoisdealers.com. |
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ALLY FINANCIAL SETTLEMENT WITH U.S. ON AUTO LOAN DISCRIMINATION SIGNALS MORE REGULATORY REPRISALS
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Last weekend's announcement that Ally Financial settled with the federal government for $98 million triggered statements from the highest levels of the Obama Administration, starting with Attorney General Eric Holder who described it as the "largest settlement ever in an auto loan discrimination case, " followed by CFPB Director Richard Cordray's promise to return $80 of the $98 million to the "hard working consumers who paid more for their cars and trucks based on their race and national origin." The remaining $18 million of the $98 million payout from Ally will go to the Consumer Finance Protection Bureau's civil penalty fund.
Federal investigators alleged that Ally had discriminated against 235,000 African American, Hispanic and Asian car buyers seeking loans from April, 2011 to April, 2012. The government premised its case upon an analysis of 800,000 surnames of credit customers, which it said in its complaint, is a widely accepted methodology by social scientists for determining race and ethnicity. The government said its research revealed that African Americans paid on average $300 more over the life of an auto loan than whites, while Hispanics and Asians averaged $200 more.
In a statement on the settlement, Ally denied any intentional wrong doing, contending, essentially, that they underwrite loan applications they get from dealers on the basis of credit history or credit-worthiness, with no knowledge of any applicant's race, ethnicity or national origin.
Settling this case with the government likely reflects the state of the law on discrimination being a matter of measured results of a commercial activity rather than any intention to discriminate by the product or service provider charged by the government.
This development, accordingly, spotlights the genesis of the position first taken last spring by the new Consumer Finance Protection Bureau that banks they regulate should fashion different compensation arrangements for dealers with whom they partner and receive loan referrals such that dealer compensation would be a flat amount rather than based on a sliding scale. This development also portends that additional enforcement actions are in the offing against financial institutions extending auto loans.
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IN RESPONSE TO THE ENFORCEMENT ANNOUNCEMENT BY THE CONSUMER FINANCIAL PROTECTION BUREAU AND THE DEPARTMENT OF JUSTICE, THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION ISSUED THE FOLLOWING STATEMENT:
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"NADA fully supports our nation's fair lending laws and the commitment of federal agencies to eliminate discrimination in the marketplace.
"Regrettably, in today's announced enforcement action, the CFPB continues to withhold the secret methodology it uses to determine whether unintentional discrimination has occurred. The public still does not know whether the Bureau takes into account legitimate factors that can affect finance rates - for example, a dealer's ability, regardless of race, to lower the interest rate to meet a customer's monthly budget. The CFPB's failure to reveal its approach is particularly troubling given the repeated and recent requests from bi-partisan members of both houses of Congress for this essential information.
"We are encouraged that their announcement does not mandate any form of a dealer flat fee compensation system. A flat fee system would eliminate consumers' right to save money by negotiating lower interest rates with their local car dealers." |
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2014 STANDARD MILEAGE RATES
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The IRS has issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating a vehicle for business, charitable, medical or moving purposes.
Beginning January 1, 2014, the rates for the use of a car (including vans, pickups or panel trucks) will be:
56 cents per mile for business miles driven
23.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
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SAVE THE DATE - DEALER SPRING CONFERENCE!
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Join us for the IADA/CATA Dealer Conference this spring at the Atlantis Resort in the Bahamas! Register today! Pre/Post days are available but we need your reservation ASAP! A U.S. Passport is required for travel in the Bahamas, click here for information on acquiring or renewing your passport.
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