Iowa law specifically permits negative equity to be financed by dealers and by captives as well as by banks and credit unions. Federal banking regulations require negative equity to be disclosed in the itemization section of the retail …
Dealerships will likely need help complying with the revised Federal Safeguards Rule. NADA has created A Dealer Guide to the FTC Safeguards Rule, a valuable resource for dealerships that is free for NADA members and available to non-members …
It is an unfair act for a lender or retail installment seller to obligate a cosigner unless the co-signer is informed prior to becoming obligated. The notice must be given, on a separate sheet of paper, to all …
The Consumer Protection Division of the Iowa Attorney General’s Office has taken a hard line on spot deliveries. In an enforcement policy, the attorney general said that if financing arrangements are not complete, it is not permissible to …
Some dealers have heard from a major lender that the lender was going to require vendor single interest insurance (VSI, which is also known as lender single interest insurance or LSI) on all contracts. The Iowa attorney general’s …
Dealers have reported lenders backing out of financing when it was found that the buyer/borrower was not going to be the driver of the vehicle. The lenders call this a “straw purchase.” A buyer/borrower with good credit might …
Note: There are no longer maximum rates for finance charges in Iowa. However, the old maximum was 1.65% per month, which equals 19.8% annually. We suggest you go no higher than that. New Customers Form for the customer to …
Several years ago, menu selling and other dealer practices came under attack by the Minnesota attorney general. As a result the Minnesota Auto Dealers Association adopted a recommended set of best practices. Although IADA has not adopted any …
If you report negative information to the credit bureaus (for example, when your customer pays late), you are required to give your customer a notice. The rule went into effect December 1, 2004, and requires that one of …
Note: If you have written permission from the consumer you may always pull a credit report. The opinion excerpted below discusses the rules for pulling a report without written permission. In spite of this opinion, IADA recommends that you …
A line of recent court cases said that under truth-in-lending laws, the customer had to get two copies of credit disclosures (the federal box on the retail installment contract), one to sign and one to keep. The Federal …
Date all purchase agreements and finance contracts the day that the customer signs them. The dealer must also sign the contract. Keep a copy for your file and give a copy to the customer. If it becomes necessary …