Auto dealership advocates are warning that costs will rise for borrowers if the Consumer Financial Protection Bureau presses banks to curtail auto loan markups set by dealers. The red flag followed the CFPB's new bulletin that said banks are liable for discrimination if their partner dealers mark up the interest rates on loans for minority borrowers or otherwise violate fair lending laws. "Such discrimination may not be consciously intended, but for consumers who are disadvantaged by these policies, the result is the same," CFPB director Richard Cordray said March 22 at the National Community Reinvestment Coalition annual conference. "We cannot afford to tolerate practices, intentional or not, that unlawfully price out or exclude whole segments of the population from the credit market." The agency is encouraging lenders to adopt a flat-fee model for dealer compensation, but dealer industry representatives said that doing so would hurt competition and ultimately boost car prices.