All dealers must follow The Equal Credit Opportunity Act (ECOA). This law protects the consumer and is a United States law, enacted 28 October 1974, that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, based on race, color, religion, national origin, sex, marital status, or age. This law requires lenders to send adverse action notices to the consumer in the event of being denied credit.

Adverse action is defined in the ECOA as the refusal to grant credit based on the amount or terms requested. Through Deal Pack’s integration with e-CBI it is now even easier to stay compliant when it comes to these adverse action notices. After pulling a customer’s credit within Deal Pack it takes a simple click of a button to generate the adverse action notices.

Dealers should always send adverse action notices when faced with the following three scenarios:

1) the customer submits a credit application, but the dealer does not send it to a bank or finance company

2) the customer cannot be financed because no finance source approves the deal on terms acceptable to the dealership or

3) the customer does not accept or use the credit offered.

To learn more about Deal Pack, or to get signed up for e-CBI, please contact our support staff toll free at 1-800-526-5832.