Pain Point: Requirement for Credit Customer Notices
Resolution: Learning to comply with Risk-Based Pricing
Dealership F & I departments have a new federal rule they must comply with effective January 1, 2011. That’s when the new Risk Based Pricing Rule took effect. Congress mandated the rule when it passed the FACT Act in 2003.
The rule is designed to help customers understand the effect that their credit report has on the credit terms they are being offered. That sound simple enough but finding a way to implement the law’s objective in the real world proved to be far more difficult for the two agencies charged with writing the regulations: the Federal Reserve Board and the Federal Trade Commission. NADA suggested the agencies find a manageable way for dealers to comply with the law. And they did.
Watch the “Dealer Deadline” video to learn more about dealership responsibilities under the new rule.
For more information, download our Risk-Based Pricing PDF.