Most dealerships are authorized to sell cars and make loans to finance the purchase. They send their customers' financial information to a bank, which then sends the dealer an appropriate interest rate for a borrower with that particular credit profile. But banks also permit dealers to "mark up" the interest rate on the loan to a higher level, and allow the dealership to pocket some of the additional charge.
That, of course, creates incentives for the dealer to charge people higher interest rates. But data dating back to the 1990's have shown that people of color are more likely to have their interest rates marked up than white borrowers.
The Consumer Financial Protection Bureau issued regulatory guidance in 2013 instructing companies on how to cope with this phenomenon.
Since issuing the guidance, the CFPB has taken action against Honda and Ally Bank for overcharging borrowers of color, forcing them to return more than $100 million to their customers. This was apparently too much for banks and auto dealers to handle. They lobbied for a bill that would nullify the CFPB's regulatory move.
None of the opposition was enough to counter two interest groups that wield tremendous power on Capitol Hill. Not a single Republicans voted against the bill to curb the CFPB's enforcement of anti-discrimination law this week, while 88 Democrats voted in favor. The legislation cleared by a vote of 332 to 96.
The 88 House Democrats who voted to enable racial discrimination in the automobile market:
Pete Aguilar (Calif.)
Debbie Wasserman Schultz (Fla.)
Brad Ashford (Neb.)
Joyce Beatty (Ohio)
Amerish Babulal "Ami" Bera (Calif.)
Don Beyer (Va.)
Sanford Dixon Bishop Jr. (Ga.)
Brendan Boyle (Pa.)
Robert Brady (Pa.)
Julia Brownley (Calif.)
Cheryl "Cheri" Bustos (Ill.)
Matt Cartwright (Pa.)
James "Jim" Clyburn (S.C.)
Gerald "Gerry" Connolly (Va.)
Jim Cooper (Tenn.)
James "Jim" Costa (Calif.)
Joseph "Joe" Courtney (Conn.)
Joseph Crowley (N.Y.)
Henry Cuellar (Texas)
John K. Delaney (Md.)
Suzan DelBene (Wash.)
Debbie Dingell (Mich.)
Mike Doyle (Pa.)
Tammy Duckworth (Ill.)
Elizabeth Esty (Conn.)
Bill Foster (Ill.)
Tulsi Gabbard (Hawaii)
Ruben Gallego (Ariz.)
Gwen Graham (Fla.)
Alan Grayson (Fla.)
Eugene "Gene" Green (Texas)
Janice Hahn (Calif.)
Alcee L. Hastings (Fla.)
Dennis "Denny" Heck (Wash.)
Brian Higgins (N.Y.)
Rubén Hinojosa (Texas)
Jared Huffman (Calif.)
Steve Israel (N.Y.)
Marcy Kaptur (Ohio)
William "Bill" Keating (Mass.)
Dan Kildee (Mich.)
Derek Kilmer (Wash.)
Ron Kind (Wis.)
Ann Kirkpatrick (Ariz.)
Ann Kuster (N.H.)
Rick Larsen (Wash.)
Brenda Lawrence (Mich.)
Ted Lieu (Calif.)
Dan Lipinski (Ill.)
Dave Loebsack (Iowa)
Michelle Lujan Grisham (N.M.)
Ben Ray Lujan (N.M.)
Jim McDermott (Wash.)
Grace Meng (N.Y.)
Patrick Murphy (Fla.)
Rick Nolan (Minn.)
Donald Norcross (N.J.)
Beto O'Rourke (Texas)
Bill Pascrell (N.J.)
Ed Perlmutter (Colo.)
Scott Peters (Calif.)
Collin Peterson (Minn.)
Mike Quigley (Ind.)
Kathleen Rice (N.Y.)
Raul Ruiz (Calif.)
Tim Ryan (Ohio)
Loretta Sanchez (Calif.)
Adam Schiff (Calif.)
Kurt Schrader (Ore.)
David Scott (Ga.)
Terri Sewell (Ala.)
Brad Sherman (Calif.)
Kyrsten Sinema (Ariz.)
Albio Sires (N.J.)
Louise Slaughter (N.Y.)
Adam Smith (Wash.)
Jackie Speier (Calif.)
Eric Swalwell (Calif.)
Mike Thompson (Calif.)
Dina Titus (Nev.)
Paul Tonko (N.Y.)
Norma Torres (Calif.)
Nikki Tsongas (Mass.)
Juan Vargas (Calif.)
Marc Veasey (Texas)
Filemon Vela (Texas)
Tim Walz (Neb.)
Peter Welch (Vt.)
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