Adverse Actions in a Multi-Creditor Environment
The issue of who must give notice of adverse action in an indirect financing scenario when a dealer
submits an application for credit to multiple financing sources comes up from time to time. A recent
Virginia case brings this issue to the forefront and serves as a reminder to dealers and sales finance
companies to review their adverse action procedures in an increasingly automated world.
Zachary Allen Martin submitted an online credit application to Global Select Auto, a dealership, in order to