2015 GNYADA MEMBERSHIP DIRECTORY

HOT TOPICS

2015 GNYADA Membership Directory

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.