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HOT TOPICS
2015 GNYADA Membership Directory
80
NADA RELEASES FAIR CREDIT COMPLIANCE PROGRAM FOR
DEALERS
NADA has led the charge in defending the dealer-assisted financing model, and is working to prevent the
adverse consequences that government-imposed flat fees would cause for consumers, dealers and finance
sources alike. To help dealers, NADA has prepared educational resources to strengthen their efforts to comply
with fair credit laws.
This publication provides essential background on this issue, sets forth a fair credit compliance programtemplate
that a dealer can adopt, and contains both general and specific instructions for completing the program
template. Among many other features, the program template (a) sets forth a fair credit policy that states the
dealer’s unambiguous commitment to fair credit compliance; and (b) establishes a voluntary standardized
method for determining the amount of dealer compensation that may be earned in a credit transaction.
The compensation method is based
on one that was adopted by dealers
to resolve Department of Justice
allegations of unintentional credit
discrimination. It generally involves
establishing a set amount of dealer
participation that a dealer adds to a
buyrateandonlydeviatingfromthat
amount if certain pro-competitive
factors that are unrelated to the
consumer’s background are present
in the transaction and are properly
documented.
Dealers can access a PDF of the
NADA Fair Credit Compliance
Policy & Program at www.
nada.org/regulatory_affairs/faircreditlanding
Thank you to NADA for this article.