Dealer Exemption in Financial Oversight Bill Altered to Address Military's Concerns

WASHINGTON - A Senate proposal to exempt car dealers from oversight by a proposed consumer protection agency has been changed to add a requirement that military families' complaints about dealers be monitored and shared by the new agency, Automotive News reported. Under the new proposal, filed by Sen. Sam Brownback, R-Kan., the proposed agency's military liaison office would coordinate with the federal agencies that now oversee dealers to ensure that these complaints are addressed. But under the Brownback plan, investigations of these complaints and the devising of rules affecting dealers would remain with the current oversight agencies -- the Federal Reserve and Federal Trade Commission. “The addition was made to address concerns raised by some military groups,” Brownback spokeswoman Becky Ogilvie said today. Bailey Wood, a National Automobile Dealers Association spokesman, said the changes in the proposal would still “prevent a new agency from adding an additional layer of rules over dealers.” The Military Officers Association of America, which has opposed the Brownback amendment, said it continues to do so even after the change. "Senator Brownback’s change fails to provide any additional protections for servicemembers and their families from unscrupulous dealers and places responsibility directly onto the troop to identify fraud and avoid being taken advantage of," said association spokesman Michael F. Hayden, a retired Air Force colonel. The Senate vote on the amendment is expected to be close, and it is unclear how many votes will be swayed by the changes. The U.S. Treasury Department has been leading a coalition of military, banking, consumer and civil rights groups against the Brownback amendment. The agency declined to comment today.