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Association of Finance & Insurance Professionals
AFIP CERTIFIED
F&I PROFESSIONAL
BASIC & SENIOR COURSE
R e q u i r e d S u p p l e m e n t a l Tr a i n i n g w i t h Q u i z
Adverse Action
Notice Requirements
as mandated by The Equal Credit Opportunity Act
and the Fair Credit Reporting Act
THIS SUPPLEMENT IS PROVIDED AS AN INDUSTRY SERVICE BY:
READ THIS FIRST
TO: Basic & Senior AFIP Certified F&I Professionals
FROM: David Robertson – Executive Director
SUBJECT: F&I Procedure Changes – Mandated Training
The FTC has indicated it intends to enforce the adverse action notification requirements of the Fair Credit
Reporting Act (“FCRA”) more vigorously than in the past. This supplement provides a review of the
FCRA and the related Equal Credit Opportunity Act (“ECOA”) and the procedures dealership personnel
must follow to ensure compliance. This information is drawn from the National Automobile Dealers
Association’s (NADA’s) A Dealer Guide to Adverse Action Notices and from material compiled by the
law firm of Hudson Cook, LLP.
In addition to the review, this supplement provides appendices with sample forms and a 25-question quiz.
AFIP recommends that dealerships use NADA’s simplified Adverse Action Notice form included as
Appendix B.* The other sample Notices, which also are set forth in the NADA guide, are taken directly
from regulations issued by the Federal Reserve Board.
You must comply with the law every time a customer’s request for credit is denied. The required
procedures are not the result of new legislation or FTC policy, but are in recognition of the fact that the
existing notification rules imposed by the FCRA are not always being met in the processing of vehicle
purchase-related requests for credit.
As an AFIP Certified F&I Professional, you are required to read this material, post a minimum score of
80% on the quiz, and integrate the procedures into your daily F&I routine. The requirements addressed
herein should be implemented immediately.
Keep in mind that your state laws may impose requirements different from, and that may supersede, those
established by the ECOA and FCRA. Also, it’s always better to err on the side of caution. If you’re
not sure whether to file a Form 8300, for example, you should go ahead and file. Within the realm of
common sense, the same logic applies to issuing Adverse Action Notices. There is no penalty for a Notice
issued in error.
DISCLAIMER
The information provided is a training supplement for the AFIP Certified F&I Professional program. It
is not offered as, nor can it be construed to be, legal advice. The action taken by dealership personnel
relative to the ECOA and FCRA should be based on advice of competent counsel and company policy.
This material was reviewed by Jean Noonan, Esq., of Hudson Cook, LLP and James S. Ganther, Esq., of
Mosaic Interactive, LLC.
* NADA’s simplified adverse action notice form appears at Appendix B of NADA’s A Dealer Guide to
Adverse Action Notices. Appendix B and Appendix C of the NADA guide are reprinted with the express
permission of NADA. NADA has not reviewed, and does not offer a legal opinion on, any
portion of this AFIP publication.
ADVERSE ACTION NOTICE REQUIREMENTS
As mandated by the ECOA & FCRA
DEFINITIONS
Adverse Action – The denial of a request for credit relative to the dollar amounts, APR, and terms
contained in the verbal or written application. Note that the test extends beyond the initial
turndown. If a counteroffer is made containing less advantageous terms and conditions, and the
customer doesn’t accept the counteroffer, this also qualifies as an adverse action.
Consumer Report – The information provided in a credit report or contained in a credit score
issued by a credit bureau.
Counteroffer – A rejection of the initial terms and conditions of the transaction and an offer on
different terms, such as a different APR, downpayment, monthly payment, repayment term,
including the vehicle selected for purchase, or other material alteration of the original deal. If the
customer accepts the counteroffer, there is no need to issue an Adverse Action Notice. If the
customer rejects the final counteroffer, then an Adverse Action Notice must be issued.
Creditor – A person who regularly extends consumer credit and is the person to whom the debt
arising from the consumer credit transaction is initially payable. Since a dealership is the creditor at the time the installment sale agreement is consummated, ECOA and FCRA rules apply.
Credit Information From a Third Party (Other Than a Credit Reporting Agency) – Creditrelated information obtained from an employer, landlord or other credit reference provided by the
customer.
Participating Creditor – A creditor who makes decisions relative to the funding of vehicles
and/or participates as a wholesale buyer of dealer paper.
A dealership is a “participating creditor” if it participates in a credit granting decision. If a
dealership qualifies as a participating creditor under the ECOA, and a consumer credit report
was used in the course of denying credit, then an Adverse Action Notice must also be issued in
accordance with the FCRA.
Referring Creditor – An entity that simply directs customers to available credit sources and is
not required to issue Adverse Action Notices.
GENERAL REQUIREMENTS
Conditions under which the ECOA requires the issuing of an Adverse Action Notice
(If any of the situations below occur, an Adverse Action Notice must be issued.)
• Based on the information provided in a credit application, whether received in person or
by telephone, a dealer cannot find a lending source willing to accept assignment of the
installment sale agreement.
• A vehicle is spot delivered and no funding source will accept the original terms of the
deal, unless the dealer, customer, and lending source agree to different terms.
• The deal is based on specific credit terms (a 72-month repayment period) and the
customer rejects a counteroffer (a 60-month repayment period).
An Adverse Action Notice is not required if the finance company accepts the terms of the credit
under the conditions agreed to by the customer. Also, in cases where a counteroffer is made –
representing terms and conditions that differ from the original deal – and the customer accepts the
counteroffer – no Adverse Action Notice is required.
Conditions under which the FCRA requires the issuing of an Adverse Action Notice
(If any of the situations below occur, an Adverse Action Notice must be issued.)
• The information in a credit report is the basis for denying the customer’s credit.
• The information provided by a third party, other than a credit reporting agency, such as
an employer or landlord, is the basis for denying credit.
In such cases, additional notification information required by the FCRA must be provided to the
customer. It is permissible to combine the notice information mandated by the ECOA and the
FCRA in one form.
Applying the regulatory requirements to actual situations:
1. Upon receipt of a credit application and credit bureau report, it is learned that the
customer’s BEACON score of 325 is below the published thresholds of any lenders
available to the dealer. In this case, a decision is made in-house not to submit the
application and the parameters of the deal to any lending sources. The decision to deny
the credit is made by someone at the dealership. An Adverse Action Notice containing
the ECOA and FCRA information is required.
2. Upon receipt of a credit application and credit bureau report, it is apparent that the
original parameters of the deal must be altered to find a willing funding source. The deal
is renegotiated before the new agreed-to terms are submitted to a lending source. If the
request for credit is denied, the dealer must issue an Adverse Action Notice containing
the ECOA and FCRA information.
Helpful Tip: You are required to issue an Adverse Action Notice if you cannot find a lending
source willing to accept the credit terms posted to the original deal. Also, if the deal is based on
the customer’s request for a specific APR, downpayment, repayment term, and other relevant
factors – and the request for credit under the parameters of the agreed-to deal is denied – an
Adverse Action Notice must be issued.
For example, in negotiating the deal, a customer will only accept the dealership-arranged funding if
an APR of 5% can be secured. If no lending source is willing to accept the deal at the requested
APR – but a lender will accept it at a higher APR – and the customer does not accept the higher
rate, then an Adverse Action Notice must be issued. This standard applies regardless of whether
the decision to deny the credit was made by a dealership employee or a lending source.
Counteroffer Exception – If, in the situations above, a counteroffer was made to establish
conditions acceptable to a lender and the dealership, and the customer agreed to the counteroffer,
then no Adverse Action Notice is required. If the customer rejected the terms of the counteroffer,
a Notice would be required.
As is generally the case, a credit application is shopped with two or more lending sources. Please
note the following scenarios:
1. A request for credit is sent to three sources. Two deny the request, but one will accept it
on terms unacceptable to the selling dealership. The dealership elects not to do the deal,
in effect denying the credit.
Since the dealership decided not to offer credit, the dealership is responsible for issuing
an Adverse Action Notice. (It is likely that the two credit sources who denied the credit
would send Notices as well.)
2. A request for credit is sent to three sources. In this case, all three decline the request for
credit. While all three of the lending institutions should issue Notices, the dealership
cannot rely on their Notices to meet the dealership’s Notice obligation.
The dealership should issue an Adverse Action Notice as well. (There is no prohibition
against issuing duplicate Notices.)
3. A request for credit is sent to three sources. Two decline the request and one accepts the
request based on the terms agreed to by the customer.
Since the creditor accepted the terms agreed to by the customer (and the transaction is
consummated), the dealership is not required to issue an Adverse Action Notice. (The
creditors denying the credit would probably issue Notices, because they would not know
the consumer received financing from another lending source.)
Business-related Adverse Action Notices
The Fair Credit Reporting Act doesn’t address business-related vehicle purchase transactions. The
ECOA, however, mandates different procedures depending on whether the company’s gross
annual income exceeds $1 million or is below that threshold. The F&I practitioner must ask each
business applicant whether the business posts gross annual revenue of more than $1 million,
record the response and follow the appropriate procedures outlined below.
If the gross annual income is $1 million or less:
The Notice can be delivered orally or in writing within 30 days of receipt of the credit application.
As with consumer transactions, the Notice must state that the business can request a disclosure
of the specific reasons for the denial within 60 days. The business has the right to have the reasons
confirmed in writing within 30 days after the creditor receives the company’s written request.
You must also give the ECOA anti-discrimination statement (see sample forms in the appendices).
In cases where the application is made solely by phone, you may satisfy the Notice and disclosure
requirements by giving an oral statement of the action taken and the business’s right to a statement
of the reasons for adverse action.
The ECOA also mandates different record retention requirements for business transactions. If
gross revenues are $1 million or less, the records must be kept on file for one year after notifying
the business of the credit decision.
In cases where the business posts gross annual revenue in excess of $1 million:
The Adverse Action Notice can be delivered orally or in writing within a reasonable time. If the
business makes a written request for the reasons for denial within 60 days of notification, a written
statement and the ECOA anti-discrimination notice must be provided.
Records must be kept on file for 60 days after notifying the business of the credit denial. In cases
where the business requests that records be kept for a longer period of time, or has requested a
written statement of denial, the records must be maintained for one year.
Consumer-related Transactions – Adverse Action Notice Time Requirements
• If the dealership cannot arrange for the requested financing, a Notice must be sent to the
customer within 30 days of receipt of the application.
• If a counteroffer is deemed to be unacceptable by the customer, the Notice must be sent
to the customer within 90 days after delivering the counteroffer.
• In the case of incomplete applications (information needed to process the application is
missing), if no Notice of Incompleteness is sent, the Notice must be sent to the customer
within 30 days of receipt of the incomplete application.
The content of the Adverse Action Notice will fall beyond the purview of the F&I department.
However, the ECOA requires that a statement of the specific reason for the action be included in
the Notice. As an alternative, a “simplified Notice” can be used that contains language notifying the
customer of his right to receive a statement if the request is made within 60 days of the Notice.
Since the simplified Notice requires that the individual responsible for issuing the statement of
reasons be identified, care must be taken in selecting the individual assigned this task. AFIP
recommends that a corporate officer fully versed in F&I practices and the requirements set forth
in the ECOA and FCRA – an F&I Director or Comptroller – be designated as the source.
In addition, the dealer principal, competent counsel, and those responsible for F&I operations
should consult the Federal Reserve Board’s model forms (reprinted at Appendix C) and NADA’s
simplified Adverse Action Notice derived from these forms (reprinted at Appendix B) in developing
a roster of acceptable reasons for denial.
In cases where a request for credit was denied by one or more funding sources, and the dealership’s
action was based solely on the reasons cited by the lenders, the stated cause(s) for denial reported
by the dealership should mirror those provided by the lenders.
However, if a dealership employee made a credit decision by denying the request, the basis for
doing so should ordinarily be limited to the reasons noted in the model forms. The Equal Credit
Opportunity Act is very specific as to what constitutes discriminatory practices, and care must be
taken to ensure that the decision was based on the customer’s credit worthiness and not any
personal characteristics.
If, after receiving a written Adverse Action Notice, the consumer requests the reasons for denial,
a dealership employee may give those reasons orally. The dealership must tell the consumer that
the dealership will confirm, in writing, any reasons given orally if the consumer requests written
confirmation of the reasons within 60 days.
Helpful Tip: While the volume of dealership-generated Adverse Action Notices may be relatively
high, in cases where the “simplified” version is used, it is anticipated that the number of
customers making the request will be smaller. As such, it should be possible to devote the time
required to conduct a full review of the facts, make a determination of the reason for denial, and
subject this decision to a second source for review – before issuing the statement to the customer.
Notification Requirements
The ECOA does not specify how the Notices are to be delivered. They can be delivered in
person, by regular mail, by fax or electronically.
Please note that an electronic version of the Notice can only be used if the creditor complies with
the Electronic Signatures in Global and National Commerce Act (E-Sign Act) and the ECOA –
and has obtained, prior to transmitting the Notice, the customer’s permission to receive the Notice
electronically.
Content of the FCRA Notice
The FCRA portion of the Adverse Action Notice has two parts. First, it must identify and provide
contact information for the credit reporting agency that provided the report. Include the agency’s
mailing address and toll-free telephone number. Adding the website address is also a good idea,
because many consumers find it easier to request a file disclosure online.
Second, the FCRA requires the Adverse Action Notice to include these specific disclosures:
• That the credit decision was based wholly or in part on the information contained in the
report issued by the credit reporting agency.
• That the credit reporting agency did not make the credit decision and is unable to
provide the consumer with the specific reasons the adverse action was taken.
• That the customer has a right to obtain a free copy of his or her credit report from the
credit reporting agency if the request is made within 60 days of receiving the Notice.
• That the customer has the right to question the accuracy or completeness of the information
contained in the customer’s report.
If a credit decision was based wholly or in part on information obtained from a third party (other
than a credit reporting agency), this fact must be stated. Third-party information may include
assessments of the customer’s credit worthiness, credit standing, credit capacity, character,
general reputation, personal characteristics, or mode of living.
In addition, a statement must be included that the customer may, within 60 days of receipt of the
Adverse Action Notice, make a written request for the disclosure of the nature of this information.
The creditor must respond in writing within 30 days of receipt of the request.
The Requirements Regarding Incomplete Applications
Since the issuance of a Notice may depend on whether an application has been submitted,
procedures should be established for addressing incomplete credit applications.
The dealership may, within 30 days of receipt of an incomplete application, issue either an
Adverse Action Notice or a “Notice of Incompleteness.” If the dealership uses a Notice of
Incompleteness, the Notice must request in writing the required additional information, provide
a reasonable timeframe within which the customer must respond, and state that the request for
credit will not be considered until the missing information is provided.
Recordkeeping Requirements
Under the ECOA, the following documents must be kept on file for 25 months after the dealership
notifies the consumer of credit approval, adverse action, or application incompleteness:
• a copy of the credit application
• a copy of the credit report
• documents verifying notice to the customer, including notes and computer records
showing that the written or oral notice was given
• statements giving the reasons for denying credit, including those cited by the simplified
Adverse Action Notice (statements given to the customer or found in internal
memoranda), and
• any written statements submitted by the customer alleging a violation of the ECOA.
While the retention period generally starts near the time the purchase-related activity occurs, in
cases of a missing information request, it may start well after the initial contact with the customer.
The dealership may keep paper or electronic copies of these documents. AFIP recommends that
they be stored securely, because privacy rules require dealerships to maintain physical, administrative,
and technical safeguards of customers’ personal information.
Also note that if the dealership is notified that it is under investigation or subject to an enforcement
proceeding relating to ECOA or Regulation B, it must retain these records until the matter is
resolved or the court grants permission for their disposal.
Important note regarding “dead deal” recordkeeping requirements
The record retention obligation also applies to credit applications that were received but then
withdrawn, and credit approvals, even when the consumer did not complete the transaction.
The FCRA does not impose record retention requirements, though it is suggested that these
records be maintained as well. Since the FCRA allows claims for violations to be filed five years
after the date on which the alleged violation occurred, the records should be maintained, on the
advice of competent counsel, for a reasonable period of time.
Penalties
Any creditor failing to comply with a requirement imposed by the ECOA or Reg. B is subject to
civil liability for actual and punitive damages in individual or class actions. Dealerships may be
liable for punitive damages up to $10,000 in individual actions, and up to $500,000, or one
percent of the creditor’s net worth, whichever is less, in class actions. A successful applicant may
recover court costs and reasonable attorney’s fees.
A dealership’s liability under the FCRA can be divided into two categories: (i) civil liability to a
consumer for noncompliance with the FCRA, and (ii) exposure to civil penalties in enforcement
actions brought by federal or state authorities. A dealership can be civilly liable to a consumer for
either willful or negligent noncompliance with the FCRA. A dealership found to have willfully
violated the FCRA is liable to affected consumers in an amount equal to the sum of (i) any
actual damages sustained by the consumer as a result of the violation or statutory damages of not
less than $100, nor more than $1,000, per violation; (ii) such punitive damages as the court may
allow; and (iii) in a successful action by the consumer, the costs of the action together with
reasonable attorney’s fees as determined by the court.
A dealership found to have negligently violated the FCRA is liable to affected consumers in an
amount equal to the sum of (i) any actual damages sustained by the consumer as a result of the
violation; and (ii) in a successful action by the consumer, the costs of the action together with
reasonable attorney’s fees as determined by the court.
Currently, courts are divided on whether amendments to the FCRA in 2003 eliminated
consumers’ rights to sue for FCRA Adverse Action Notice violations. AFIP recommends careful
compliance with FCRA adverse action requirements, nonetheless. Regardless of how the issue of
civil liability to consumers is resolved by the courts, the dealership may also be liable for civil
penalties in a civil enforcement action brought by the Federal Trade Commission or the relevant
state Attorney General.
NOTES:
AFIP CERTIFICATION COURSE
ECOA / FCRA ADVERSE ACTION NOTICE QUIZ
The correct answers to the quiz can be found on the back cover of this booklet. The AFIP passing
threshold of 80% applies. Keep at it until you fully understand the reasons behind the correct answers.
1. The changes in dealership practices required by the adverse action reporting rules mandated by
the Fair Credit Reporting Act are the result of new legislation enacted by Congress.
a. True
b. False
2. The policy changes required in order to comply with the FCRA are effective:
a. July 1, 2007.
b. January 1, 2008.
c. Immediately.
3. According to the FCRA, a dealer must issue an Adverse Action Notice if the request for credit was
denied based on:
a. The information provided by a credit reporting agency.
b. Information provided by a third party (e.g., an employer or landlord).
c. a and b
d. None of the above.
4. The adverse action reporting requirements for Notices issued in accordance with the FCRA
must contain:
a. A statement that the adverse credit decision was based in whole or in part on information
obtained from a credit reporting agency.
b. The contact information for the credit reporting agency that provided the report.
c. A statement that the credit reporting agency did not make the decision.
d. Notice of the consumer’s right to obtain a free copy of his or her credit report from the credit
reporting agency, if requested within 60 days after receiving the Notice.
e. Notice of the customer’s right to dispute the accuracy or completeness of any consumer
report information with the credit reporting agency.
f. All of the above.
g. All of the above, except ____.
h. None of the above.
5. In the course of a transaction, a customer completes a credit application. Based on negative
information contained in the application, a decision is made by an employee of the dealership
to deny credit – without securing a credit report or sending the deal to a funding source for
approval. The dealer:
a. Has an obligation to issue an Adverse Action Notice as required by the ECOA.
b. Has no obligation to issue an Adverse Action Notice under the ECOA.
c. Has an obligation to issue an Adverse Action Notice as required by the FCRA.
d. Has no obligation to issue an Adverse Action Notice under the FCRA.
e. a and c
f. a and d
6. In the course of a transaction, a customer completes a credit application and the dealer
secures a credit report. Based on negative information contained in the credit report, a
decision is made by an employee of the dealership to deny credit – without sending the
deal to a funding source for approval. The dealer:
a. Has an obligation to issue an Adverse Action Notice as required by the ECOA.
b. Has no obligation to issue an Adverse Action Notice under the ECOA.
c. Has an obligation to issue an Adverse Action Notice as required by the FCRA.
d. Has no obligation to issue an Adverse Action Notice under the FCRA.
e. a and c
f. b and c
7. In negotiating the in-store funding arrangements, the customer will accept the deal if he
only has to tender $1,000 as a downpayment. Based on the information contained in the
customer’s credit report and the parameters of the deal, a funding source will only
approve the transaction with a $3,000 downpayment – which the customer will not agree
to. Because the funding source approved the deal with only a slight alteration in the
terms, the dealer is not required to issue an Adverse Action Notice.
a. True
b. False
8. A customer completes a credit application and the dealer secures a credit report. Due to
the low credit score, the F&I person makes a maximum effort to find a lender willing to
accept the deal. The deal is shopped with five primary lending sources and three secondary
lenders. All eight deny the request for credit.
a. Since all eight lenders will issue Adverse Action Notices, the dealer has no obligation;
it would just beat down the customer by sending a ninth Notice.
b. The dealer has an obligation to issue a Notice.
9. The same circumstances noted in question 8 occur, except in this case one of the lenders
accepts the deal as submitted and the credit transaction is consummated. In this case, the
dealer:
a. Is required to issue an Adverse Action Notice in response to the seven lenders who
denied the credit.
b. Has no obligation to issue an Adverse Action Notice because the deal was consummated
as submitted.
10. A funding source will approve the deal based on specific changes in the terms originally
submitted. If the customer agrees to the conditions of the counteroffer, the dealer:
a. Must issue an Adverse Action Notice.
b. Does not need to issue an Adverse Action Notice.
11. The F&I person is in possession of a credit application that is missing information, without
which the application cannot be sent for review. In this case, the F&I practitioner can:
a. Send the customer a written Adverse Action Notice within 30 days.
b. Send the customer a written Notice of Incompleteness, noting the items needed to
complete the application, establishing a reasonable time to respond, and stating that the
application will not be processed unless the requested information is provided.
c. Either a or b
12. The customer is purchasing a vehicle for use in his business, and corporate credit information
is used to complete the credit application. In this case, the F&I practitioner, in accordance
with the ECOA, must ask and record:
a. Whether the business is registered with the state Department of Commerce.
b. Whether the business posts a gross annual income of $1 million or less.
c. Whether the business is a member of NAFTA (North American Free Trade Agreement).
d. All of the above, except ___.
e. All of the above.
13. Based on the customer’s credit history, the request for credit is denied by all the funding
sources who reviewed the deal and no counteroffer was made. In this case, the dealer issued
a simplified Adverse Action Notice. Ninety days after receipt of the notice, the customer
makes a written request for an explanation as to why credit was denied. The dealer:
a. Must comply with the customer’s request as required by the FCRA.
b. Must comply with the customer’s request as required by the ECOA.
c. Has no obligation to comply with the request, although a business decision might be
made to honor it.
14. According to the FCRA, a customer can bring a claim under the Act seven years after
the date on which the alleged violation occurred.
a. True
b. False
15. The ECOA requires that specific documents be retained for:
a. 12 months from the date of the application.
b. The same record retention period mandated by Regs. Z and M.
c. 25 months from the date of the application.
d. No specific length of time. The ECOA does not specify a term, only that records should
be retained during the installment sale agreement repayment period.
16. A copy of the credit report used to evaluate the customer’s credit should be included in
the documents that are kept on file to comply with the ECOA.
a. True
b. False, only a copy of the credit application is to be kept on file.
17. Under the ECOA, the Adverse Action Notice must include the specific reason credit was
denied – such as the applicant’s delinquent credit obligations – or disclose the applicant’s
right to a specific statement of the reasons if requested within 60 days of the Adverse
Action Notice.
a. True
b. False
18. A creditor must provide the consumer with an Adverse Action Notice any time the creditor
denies credit, or refuses to grant credit in substantially the amount or the terms requested
by the consumer.
a. True
b. False
19. Under the FCRA, an Adverse Action Notice must include the name, address, and telephone
number of the credit reporting agency that furnished the report, along with a statement
that the credit reporting agency was responsible for making the decision to take adverse
action, and that the consumer can contact the agency to find out the specific reasons for
the decisions.
a. True
b. False
20. Violations of the ECOA can subject dealerships to liability for:
a. Actual damages suffered by consumers.
b. Punitive damages up to $10,000 in an individual action.
c. Punitive damages up to $500,000, or up to 1% of the dealership’s net worth, whichever
is less, in class actions.
d. All of the above.
21. Willful violations of the FCRA can expose dealerships to liability for:
a. Actual damages suffered by consumers.
b. Statutory damages of not less than $100, nor more than $1,000, per violation.
c. Either a or b
22. Willful violations of the FCRA can also expose dealerships to liability for:
a. Punitive damages.
b. Court costs.
c. Attorney’s fees.
d. All of the above.
23. Violations of the FCRA can expose dealerships to civil penalties in actions brought by
federal or state authorities.
a. True
b. False
24. Negligent violations of the FCRA can expose dealerships to liability for:
a. Actual damages suffered by consumers.
b. Court costs.
c. Attorney’s fees.
d. All of the above.
e. a and c
25. Your dealership’s Adverse Action Notices should be reviewed by competent counsel.
a. True
b. False
APPENDICES
Appendix A
Web address where the Federal Reserve Board’s sample Adverse Action
Notice templates are posted
Appendix B NADA’s Simplified Adverse Action Notice recommended by AFIP
Appendix C
Sample FRB Adverse Action Notice templates (referenced in Appendix A) as
set forth in NADA’s A Dealer Guide to Adverse Action Notices.
APPENDIX A
The Federal Reserve Board provides sample Adverse Action Notice
templates in Appendix C of Regulation B at the following address:
http://www.bankersonline.com/regs/202/202-appc.html
Other sites of interest:
Re: ECOA
http://www4.law.cornell.edu/uscode/html/uscode15/usc_sec_15_
00001691----000-.html
Re: FCRA
http://www.ftc.gov/os/statutes/fcrajump.shtm
(As noted above and elsewhere in this document, AFIP recommends that dealerships use NADA’s simplified Adverse Action
Notice provided in Appendix B, rather than the Federal Reserve
Board templates.)
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
Reprinted with permission from the National Automobile Dealers Association.
NOTES:
AFIP extends its appreciation to Mosaic Interactive
for reviewing this material.
Post Office Box 10621
Tampa, Florida 33679
813.221.2700
813.221.2702 (fax)
For additional compliance resources, visit
the Mosaic Interactive website at www.mosaic-interactive.com.
ECOA / FCRA ADVERSE ACTION
Quiz Scoring Key
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
b
c
c
f
f
e
b
b
b
b
c
b
c
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
b
c
a
a
a
b
d
c
d
a
d
a
If you have any questions about FCRA and ECOA adverse action notification
requirements, please contact:
Association of Finance & Insurance Professionals
817. 428.2434 • [email protected]
P.O. Box 1933
Colleyville, Texas 76034-1933
4104 Felps Drive, Suite H
Colleyville, Texas 76034
Association of Finance & Insurance Professionals
4104 Felps Drive, Suite H, Colleyville, Texas 76034
817.428.2434 • [email protected] • www.afip.com