The Latest: GOP takes regulatory fight to car loans

WASHINGTON – The Latest on legislation that would overturn guidance on discrimination in auto loans (all times local):

12:30 p.m.

The GOP-led Senate has voted to block guidance a consumer protection agency issued five years ago to help ensure minority car buyers don’t pay higher interest rates on car loans.

The vote was 51-47. Democratic Sen. Joe Manchin of West Virginia was the only lawmaker to cross party lines, voting yes.

Republicans say that rescinding the guidance is necessary because it amounted to a backdoor attempt to regulate auto dealers by a consumer protection agency that was prohibited from regulating that industry.

Democratic lawmakers argued that rolling back the guidance would hurt many consumers. They also voiced concerns the effort is setting a precedent in which lawmakers will go after scores of agency bulletins and guidance letters issued over the years.

The House has yet to take up the measure.

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12:36 a.m.

The Republican-led Congress last year revoked more than a dozen Obama-era federal regulations. Now, it’s poised to undo guidance a consumer protection agency issued five years ago to help ensure minority car buyers aren’t charged higher interest rates.

Republicans say that rescinding the guidance is necessary because it amounted to a backdoor attempt to regulate auto dealers. Congress expressly prohibited such regulation when establishing the consumer protection agency in 2010.

Opponents say they’re concerned the GOP’s fight against government regulations is entering a new phase. They warn that a Senate vote Wednesday could be the first of many to nullify scores of agency bulletins and guidance letters issued over the years.

Such guidance conveys to the public how regulators interpret existing law and what steps industries should take to comply.