A provision in last year's financial reform law requires dealers and other creditors who use a credit score in taking adverse action - such as a credit turn-down - to include new credit score disclosures in their adverse action notices beginning July 21. (This provision also requires the disclosures to be included in risk-based pricing notices, but this does not affect dealers who issue Credit Score Disclosure Exception Notices to comply with the Risk-Based Pricing Rule.)
NADA University will soon release a new version of its publication "Driven - A Dealer Guide to Adverse Action Notices" explaining the new disclosure requirements and providing model adverse action notice forms that the Federal Reserve Board is developing to accommodate the new disclosures.
Driven management guides are provided as a complimentary benefit to NADA and ATD members and are available online at NADAuniversity.com in the Resource Toolbox. Members must sign in to access these guides. For assistance, contact NADA University Customer Service at (800) 557-6232.
In addition, dealers can review a short video on the topic and participate in a comprehensive webinar on Wednesday July 6 from 1-3 p.m. EST. To register, call the number above or sign in to NADAuniversity.com, visit the NADA U Store, then select Products, then Webinars & Seminars.