05
December
2025

Legislative & Government Relations Update – December 2025

Stay updated on legislative changes impacting dealerships. Read about NIADA's efforts against over-regulation, CFPB rule changes, and resources for dealer compliance and advocacy.

Legislative & Government Relations Update – December 2025

Over the past few months, we have been working closely with NIADA on legislative issues – to help all dealers push back against over-regulation by various Federal and State agencies. Even during a “Government Shut-down” or a recess between sessions, bureaucrats are hard at work – trying to find ways to justify their positions and level of control.

In September, the CFPB published a notice of potential rule change (NPRM), Docket CFPB-2025-0018, attempting to define “risks to consumers with regard to the offering or provision of consumer financial products or services” for “non-bank entities”… legal mumbo-jumbo? Yes, but very important for dealerships who are already seriously overregulated. Was this on the front page of the WSJ or Washington Post? Nope, it was buried in the Federal Register.

Patrick O’Brien, NIADA Director of Government Relations & Compliance, was alerted to this notice by the MidAtlantic IADA. He drafted a letter for Jeff Martin, NIADA President, to submit for consideration to the CFPB on YOUR behalf. Tag teaming like this, between offices and between connected associations, is what we do to keep everyone updated and on the same page when fighting multi-jurisdictional battles for our members.

On our website, you’ll find a tab at the top marked “News & Alerts” – under that heading there is a drop down for “Government Relations”… click on it! (Go ahead, you know you want to!)

This is your GO TO spot for anything that has to do with what is going on that WILL impact you.

The very first block on this page is “Reforming the CFPB” – bills that are currently in the House and Senate in Washington DC to introduce Congressional oversight to the Consumer Financial Protection Bureau (CFPB).

The CFPB has been operating completely autonomously since its’ creation by the Dodd-Frank Act in 2010, officially launched in July 2011. Its original intent was to keep big banks and lending institutions in check after the 2007-2008 financial crash, but its mission became protecting consumers from themselves. Unfortunately, consumers need transportation and Buy Here Pay Here dealers meeting the needs of those who have been rejected by those big banks and lending institutions fell directly in the crosshairs of the CFPB hungry to justify their existence. In the past 15 years, not much had changed until the “One Big Beautiful Bill Act” in 2025.

The GOOD NEWS:

  • Since the “One Big Beautiful Bill Act”, which cut the CFPB’s operating expenses from 12.5% to 6% of the Federal Reserve’s operating expenses, their scope of “recommendations” for FTC enforcement has drastically dropped off.
  • The CFPB is, for the first time, proposed for Congressional Oversight – this means that their scope of authority would have limits, their budget would actually be reviewed as part of normal appropriations AND they would be required to provide codified definitions for the highly subjective infractions that they’ve been sending the FTC after dealers for (not just the dealership entity, but the general managers and dealer principals personally). YOUR Legislators want to hear from YOU and we want to help you do just that.
  • We have a former CFPB alumni on our team now as well – our own NIADA Director of Government Relations & Compliance, Patrick O’Brien.
  • The professional teams at ALH Law, Ignite Consulting, MidAtlantic IADA and NIADA are with you all the way – to (preferably) review your documents and processes preemptively or assist in finding the best outcome if you find yourself on the wrong side of either the state AG or CFPB.

The BAD NEWS:

  • About 1,500 very well educated CFPB staff members were cut from their ranks in 2025 – who were sought out by Attorneys General in states who believed that the mantel of the CFPB should now be taken up by the states (specifically Rhode Island, Pennsylvania, Maryland, New Jersey, Virginia and Ohio – those who hired the most former CFPB staff).
  • Attorneys General are stepping up investigation and enforcement actions with special attention being given to the automotive industry – a carryover from their CFPB days, being encouraged by the AGs.
  • Dealerships who thought that compliance was only for financial institutions and big franchise dealer groups are getting very unpleasant and expensive reality checks.

Your membership dues pay for more than cool stickers for your door and help with titlework - there are teams of people at both the local and national levels trying to advocate for and protect the rights of dealers across the country. We’re here for you, because of you!

Wishing you all a very happy holiday season – Happy Hanukkah, Happy Kwanzaa, Merry Christmas – and all the BEST to you and yours for 2026!

As seen in our Magazine

Categories: Dealer News Stories

Kathy Sabaski

Kathy Sabaski

Deputy Executive Director

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