Consumer advocates say more government supervision is needed when it comes to auto dealers financing automobiles for consumers. Next week, a joint congressional committee will be discussing exactly that, as they head into the final stages in overhauling financial regulations.

Dealers that offer financing say they are helping buyers secure the best loans, and that abuses are rare and covered by anti-fraud regulations enforced by state officials and the Federal Trade Commission. But, Tom Domonoske, a Virginia attorney who works on auto financing issues says that while dealers are shopping for the best rates, they often don’t pass the savings on to the consumer. Dealerships have been giving good deals on purchase prices, but have been trying to boost their incomes through service contracts and auto financing. Some say, resorting to questionable tactics.

Auto dealers are fighting back saying it is unnecessary and will add to their costs, ultimately driving up prices for consumers. Last year they successfully persuaded the House to exempt them from oversight by the proposed consumer protection agency, but with strong opposition from the Obama administration, who said members of the military often complain about getting ripped off in buying cars.

After settlements in a series of auto financing discrimination lawsuits in the 1990s, dealers say they agreed to cap their cut at 2% of the amount financed. California is one of the few states with a legal cap on that difference — 2.5% for loans up to 60 months and 2% for longer loans.

Consumer advocates argued that auto dealers are similar to mortgage brokers — making deals with consumers, pocketing a profit and then selling the loans to banks. Mortgage brokers would be covered by the new agency and so should auto dealers.