News

Vendor Single Interest Insurance (VSI or LSI)

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 …

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Straw Purchase Deals Rejected

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 …

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Attorney General Consumer Credit Forms

By January 31 of each year, every dealer should file a┬áConsumer Credit Code Notification Form and pay fees (usually about $50) to the Iowa Attorney General. The registration is primarily directed at lenders who are not otherwise regulated …

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Refunds on Service Contracts

Section 537.3310 of the Iowa Consumer Credit Code┬áprovides that all service contracts must contain a refund provision if the contract is financed. The buyer is entitled to a refund upon cancellation of the service contract or upon prepayment …

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Restricting Credit Card Use

Some customers want to charge some or all of the price of a vehicle on their credit card to rack up frequent flyer miles or other perks. The problem is what to do when your customer wants to …

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