The Text of the Dodd-Frank Act
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 1029
SEC. 1029. EXCLUSION FOR AUTO DEALERS.
(a) SALE, SERVICING, AND LEASING OF MOTOR VEHICLES EXCLUDED.—Except
as permitted in subsection (b), the Bureau may not exercise any
rulemaking, supervisory, enforcement or any other authority,
including any authority to order assessments, over a motor vehicle
dealer that is predominantly engaged in the sale and servicing of
motor vehicles, the leasing and servicing of motor vehicles, or
both.
(b) CERTAIN FUNCTIONS
EXCEPTED.—Subsection (a) shall not apply to any person, to
the extent that such person—
(1) provides consumers with
any services related to residential or commercial mortgages or
self-financing transactions involving real property;
(2)
operates a line of business—
(A) that involves the
extension of retail credit or retail leases involving motor
vehicles; and
(B) in which—
(i) the extension of
retail credit or retail leases are provided directly to consumers;
and
(ii) the contract governing such extension of retail
credit or retail leases is not routinely assigned to an
unaffiliated third party finance or leasing source; or
(3)
offers or provides a consumer financial product or service not
involving or related to the sale, financing, leasing, rental,
repair, refurbishment, maintenance, or other servicing of motor
vehicles, motor vehicle parts, or any related or ancillary product
or service.
(c) PRESERVATION OF
AUTHORITIES OF OTHER AGENCIES.— Except as provided in
subsections (b) and (d), nothing in this title, including subtitle
F, shall be construed as modifying, limiting, or superseding the
operation of any provision of Federal law, or otherwise affecting
the authority of the Board of Governors, the Federal Trade
Commission, or any other Federal agency, with respect to a person
described in subsection (a).
(d)
FEDERAL TRADE COMMISSION AUTHORITY.—Notwithstanding section
18 of the Federal Trade Commission Act, the Federal Trade
Commission is authorized to prescribe rules under sections 5 and
18(a)(1)(B) of the Federal Trade Commission Act. in accordance
with section 553 of title 5, United States Code, with respect to a
person described in subsection (a).
(e)
COORDINATION WITH OFFICE OF SERVICE MEMBER
AFFAIRS.—The Board of Governors and the Federal Trade
Commission shall coordinate with the Office of Service Member
Affairs, to ensure that—
(1) service members and their
families are educated and empowered to make better informed
decisions regarding consumer financial products and services
offered by motor vehicle dealers, with a focus on motor vehicle
dealers in the proximity of military installations; and
(2)
complaints by service members and their families concerning such
motor vehicle dealers are effectively monitored and responded to,
and where appropriate, enforcement action is pursued by the
authorized agencies.
(f)
DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
(1) MOTOR
VEHICLE.—The term ‘‘motor vehicle’’ means—
(A) any
self-propelled vehicle designed for transporting persons or
property on a street, highway, or other road;
(B)
recreational boats and marine equipment;
(C) motorcycles;
(D) motor homes, recreational vehicle trailers, and slide-in
campers, as those terms are defined in sections 571.3 and 575.103
(d) of title 49, Code of Federal Regulations, or any successor
thereto; and
(E) other vehicles that are titled and sold
through dealers.
(2) MOTOR VEHICLE
DEALER.—The term ‘‘motor vehicle dealer’’ means any person
or resident in the United States, or any territory of the United
States, who—
(A) is licensed by a State, a territory of the
United States, or the District of Columbia to engage in the sale
of motor vehicles; and
(B) takes title to, holds an
ownership in, or takes physical custody of motor vehicles
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