INDUSTRIES: Automotive Dealership – Deal Jacket Archive

– Deal Jacket Archival – Why is it so Important?

– The penalty for failure to properly display a compliant buyers guide is $16,000 per violation

– Regulation B and the Equal Credit Opportunity Act require creditors to provide consumers with a notification of adverse action when credit is denied. Automotive dealers are considered creditors under this act.

– It is now as important as ever to make sure that your dealership have access to consumer credit applications that they processed in transactions that do not result in completed vehicle sales. Consumers can file action concerning an unauthorized credit report.

– The Gramm-Leach Bliley Act mandates that all businesses engaging in financial activity must provide the customer with a copy of the company’s privacy policy

– Consumer lease contracts must observe Regulation M and state law

– You are required to complete form 8300 when the transaction includes payment by U.S. or foreign currency, money order, cashier’s check, bank debit (EFT) or traveler’s check.

– Disclosures must be clear and conspicuous and some specific disclosures must be expressed in a format as provided by the FTC.

– Failure to disclose prior damage to a vehicle has been the subject of deceptive claims and allegations. Disclosure is required in certain states.

– The Federal Credit Practices Rule mandates that all co-signers receive a Notice to Cosigner.

– Physical damage insurance is required by lien holders during the term of the loan or lease. Allowing this insurance to lapse could incur costs to the purchaser as a result of “force placed” insurance.

– Spot delivery agreements convey the obligations of the dealership and consumer if financing is not obtained.

– Federal law requires dealerships to disclose odometer readings when vehicles are sold or transferred.