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HOT TOPICS
2016
MEMBERSHIP
DIRECTORY
46
MARKETING AND ADVERTISING VEHICLES AND CREDIT TERMS
Awrinkle onprescreening is“trigger leads.”Trigger leads are soldby credit bureaus that prescreen customers, but the
credit bureaus do not communicate the consumer’s name and contact information (usually a cell phone number) to
the prescreen client until another auto dealer pulls the customer’s credit report. At that point, the prescreen client
(typically a lender or another auto dealer in partnership with the lender) will call the customer on the customer’s
cell phone and attempt to induce them away from the original dealership that pulled the credit report. They will
do this often by claiming to offer better purchase or financing terms on the vehicle or aftermarket products. Some
customers literally have been called on their cell phones while still in the original dealer’s F&I office.
Trigger leads have been approved by the FTC for consumers seeking mortgage financing. However, neither
the FTC nor any court has approved trigger leads
for indirect auto finance, and trigger
leads in the mortgage context are
prohibited in a number of states
including Connecticut, Kansas
and Kentucky.
Prescreening differs from
preapproval inquiries in that a
consumer who passes the prescreen
criteria must receive a firm offer of
credit. Persons who do not pass the
prescreen criteria do not need to receive
adverse action notices unless they otherwise
affirmatively apply for credit and are declined.
Social Media Advertising
Another area of advertising and customer communications is social media, being sites such as Facebook,
YouTube, LinkedIn, Twitter and others. These sites have gained increasing popularity – Facebook has over
300 million users in the U.S. Social media sites offer dealers a new way to connect with consumers through
consumers’ principal means of staying in touch with friends, colleagues and companies with whom they have
an interest or a relationship. All of the advertising laws and regulations described in this Chapter apply to
advertising in all media, including social media.
In March 2013, the FTC issued an update to its “Dot Com
Disclosures” guide to advertisers on making effective online
disclosures. In doing so, the FTC emphasized that consumer
protection laws apply to all advertising, regardless of the
medium used, and include social media even where there
is limited space. Disclosures required to avoid deception or