Federal laws requiring Adverse Action and Risk-Based Pricing notices have been in effect since 2011. But some dealerships still fail to recognize some of the instances in which they must provide consumers the notices.
RouteOne, whose core business is a credit application management system, aims to help fix that, says Dan Doman, the company's general counsel. Last week RouteOne held a Webinar for dealerships called "Adverse Action and Risk-Based Pricing."
Dealerships must send customers an Adverse Action Notice providing them specific details about their credit score if the score was used to deny them credit. Details include what credit bureau was used and the high and low range of scores. Dealerships must send a customer a Risk-Based Pricing Notice if the customer gets credit on less favorable terms than other consumers.
Doman, who did not participate in the Webinar, spoke afterward with Automotive News Special Correspondent Jim Henry.