TORRANCE, Calif. — 700Credit LLC, a provider of credit reporting and compliance products and services, has launched a solution to help dealers comply with the new Risk-Based Pricing Rule, which went into effect on Saturday, Jan. 1.
700Credit’s free solution allows dealers to generate a Risk Based Pricing Exception Notice that, under the new rule, they must deliver to the customer at the time of or before the completion of the credit transaction, or as soon as possible after the credit score has been obtained.
“700Credit is thrilled to offer dealers this complimentary enhancement to ensure compliance with the new Risk-Based Pricing Rule,” said Curtis Knievel, vice president of sales and marketing for 700Credit. “Even better is the fact the functionality is completely seamless within the current 700Credit system.”
The Risk-Based Pricing Rule was issued by the Federal Trade Commission (FTC) and Federal Reserve Board. The rule requires that any company utilizing credit scores in connection with making a credit decision, including dealers, must notify customers when they grant credit based on terms that are “materially less favorable than the most favorable terms available to a substantial proportion of consumers.” It is designed to complement the Fair Credit Reporting Act’s Adverse Action notice requirement which mandates automobile dealerships to provide credit report information to those consumers whose credit applications were denied based on information contained within the report.
To ensure compliancy for dealers, 700Credit’s solution offers several features, including:
• Automated printing with each credit report request.
• Historical tracking to automatically keep track of the date, time and name of the individual who printed the report.
• Automatic generation of the required Risk-Based Pricing Notification in the event a score is not returned from the credit bureau.
• Ability to tie the product to the dealer’s Adverse Action Letter Program.
“With this offering, 700Credit continues to lead the industry with innovative compliance products that allow dealers to stay up to date on current regulations, and serve their customers efficiently and more transparently,” Knievel said.
For more information on 700Credit’s Risk-Based Pricing solution, call (866) 273-3848 or email [email protected].