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Adverse Action

adverse-actionWhat is Adverse Action?

In the past, dealers relied on their lender partners to provide any legally required notices to the customer when credit was denied or credit terms modified. However, under the new FCRA and ECOA regulations, dealerships are considered creditors and are now responsible for providing Adverse Action notices to customers that were not offered financing or consumers who were offered alternative financing, but denied the offer.

Our Solution

700Credit has developed a solution to help keep your dealership in compliance with Adverse Action obligations. Our services can be tailored to fit your dealership’s interpretation of the law and internal policies. Not sure of your internal policy? 700Credit has also developed a base solution that follows industry best practice (and the best liability protection) to help keep you in compliance with federal and state laws and regulations.

  • Print Locally in the Dealership: Your dealership has the option to print locally and hand the notice to the consumer instantly at the dealership.
  • 700Credit Templates: Template notices are provided which meet the Fair and Accurate Credit Transactions Act (FACTA), ECOA and FCRA compliance standards.
  • Mail House Option: Let 700Credit mail and retain the notices for you. Letters can be automatically added to the mail house queue for all applicants or only those applicants below a specific credit score cut-off. Your dealership can review the queue and select or unselect applicants you would like to receive or not receive a letter. The letter will automatically be printed and mailed by 700Credit – there is no action required of the dealer. The letter and proof of delivery to the consumer are maintained in the system indefinitely.
  • Mail to all consumers who never purchased a car: Simply submit a list, typically generated out of your DMS system, of all consumers who purchased a vehicle from your dealership. 700Credit will add to the compliance queue, generate and mail a letter to every other applicant for which a credit report was pulled.
  • Auditing and Storage: Take advantage of our mail house and have peace of mind knowing the letters, notices and proof of delivery are stored for at least the minimum period as required by law.
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