01 Apr

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

10 Sep

Dodd-Frank Disclosures

Among the many changes under the Dodd-Frank Wall Street Reform and Consumer Protection Act are a new adverse action notice disclosure under the Fair Credit Reporting Act and a change to the risk-based pricing notice requirements.

Section 1100F (Title 10, Subtitle H, which amends Sections 615(a) and 615(h) of the FCRA) imposes new requirements on users of consumer reports. These requirements will affect users of credit scores who take adverse action or make a risk-based pricing decision based on the score.

Adverse Action Notices

19 Oct

Tackling Adverse Action Notices

There’s no doubt about the importance of compliance under today’s economic environment, as both regulators and financial institutions look to correct the missteps of recent years. This situation puts an extra emphasis on the one requirement that continues to raise questions among dealers — adverse action notices.

01 Jan

Responsibility for Adverse Action Notice

Dealer Liability

 When Is 'Adverse Action' Notice Responsibility of Dealer and When Is Notice Responsibility of Finance Company?

 There are two types of adverse action notices - one is required under the Equal Credit Opportunity Act and one is required under the Fair Credit Reporting Act. This case examines the dealer's responsibility for 'adverse action' notices under both statutes.