agent Entrepreneur logo
MenuMENU
SearchSEARCH

FTC to Review Dealers' Treatment of Military Customers

June 30, 2011
2 min to read


WASHINGTON - The U.S. Federal Trade Commission will examine whether dealerships try to exploit military personnel and their families in the second of a series of public roundtables on dealer practices.


The roundtable will take place Aug. 2-3 in San Antonio, the FTC said in a statement on its Web site.

Ad Loading...


Roundtable topics include "motor vehicle sales and financing issues pertaining to military consumers, fair lending and financial literacy," the statement said.


The FTC was given streamlined authority to adopt standards for dealer-assisted financing under financial reform legislation enacted last year, reported Automotive News.


The agency has said it plans to convene as many as five roundtables this year to determine "what consumer-protection issues, if any, exist that could be addressed through a possible rule-making or other initiatives."


During the congressional battle last year over whether dealerships should be overseen by the new U.S. Consumer Financial Protection Bureau, the Pentagon weighed in on behalf of military families.


Undersecretary of Defense Clifford Stanley argued unsuccessfully that dealers should fall under the new agency's oversight.

Ad Loading...


"There are still documented cases of service members falling victim to predatory practices and prohibitively expensive products," Stanley said in a Feb. 2010 letter to the Treasury Department.


A Pentagon survey found 72 percent of 659 counselors and attorneys on military installations had counseled service members in the previous six months on deceptive auto-financing practices, the letter said.


Among these practices were falsification of loan applications, failure to pay off liens on trade-ins, and packing loans with items at inflated prices, Stanley said.


The National Automobile Dealers Association has been invited to participate at the upcoming roundtable.


"We will clearly demonstrate that optional dealer-assisted financing expands access and reduces the cost of credit for all car buyers -- including those who serve our country in uniform," NADA spokesman Bailey Wood said.

Ad Loading...


At the first FTC roundtable in April, NADA argued that current state and federal rules already prohibit dealerships from practices being reviewed by the commission.


The dealer group said a review of customer complaints showed "no systemic concerns with dealer-assisted financing."


The new Consumer Financial Protection Bureau, which is to be up and running July 21, oversees the financial institutions that provide loans to auto consumers.


An office within the new agency was created to educate military families about financial issues and protect them from unscrupulous lenders.


The office is to be headed by Holly Petraeus, wife of Gen. David Petraeus, who was unanimously confirmed by the Senate today to head the Central Intelligence Agency.


More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →