Last month, we discussed processes for delivering adverse action notices required by both the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA). This month, I want to touch on a few points for emphasis and clarity. A finance company that has denied credit to a customer will generally send the required adverse action notice. Exceptions exist, … [Read more...] about Watch Out for Adverse Action Gaps
Equal Credit Opportunity Act
Compliance remained a hot topic of conversation this year at the NADA Convention, and at the American Financial Services Association Vehicle Finance Conference, which preceded it. Unlike the discussions at last year’s convention about big fines and the assault on auto finance, the talk this year centered on a variety of topics. Questions and comments revolved around what … [Read more...] about What Dealers Need to Know About Adverse Action Notification
It’s the start of a new year, and like clockwork, the Consumer Financial Protection Bureau (CFPB), ever vigilant in self-promotion and use of press releases, announced in early February a settlement with Toyota Motor Credit Corporation (TMCC) for “alleged” violations of the Equal Credit Opportunity Act (ECOA). We use the word alleged as the consent decree provides: … [Read more...] about Alleged ECOA Violations and Dealerships: Will the Market Tip?
Crystal Lake, IL – June 5, 2015 – Contrary to news reports, the U.S. House of Representatives’ vote to eliminate the Department of Justice’s use of disparate impact does not negate the Consumer Financial Protection Bureau’s (CFPB) use of the legal theory in auto finance cases even if the bill passes the Senate and is not vetoed by the President, said Automotive Compliance … [Read more...] about House Action on Disparate Impact Not Affecting CFPB; Remains Dealer Concern