LAKE SUCCESS, N.Y. — To assist dealerships in developing a fair lending policy and better defending themselves in credit discrimination audits, Dealertrack (Nasdaq: TRAK) has introduced an Equal Credit Opportunity Act (ECOA) Model Fair Lending Compliance Policy Template and Model Exception Rate Justification Sheet for Dealertrack Compliance subscribers.
Earlier this year, the Consumer Financial Protection Bureau (CFPB) issued guidance on credit discrimination in the indirect automotive finance market, putting dealerships and lenders on notice about potential audits and punishments. In response, Dealertrack recommends that dealers adopt and implement an ECOA Fair Lending Policy, including complete documentation of any deviation from a dealer’s buy rate markup policy in the deal jacket.
“We believe that it is critical that dealerships adopt a comprehensive fair lending policy to deliver on their commitment to equal credit opportunity for all, and to protect their businesses,” said Randy Henrick, associate general counsel of compliance for Dealertrack. “The ECOA Model Fair Lending Compliance Policy Template and Model Exception Rate Justification Sheet were developed by Dealertrack to assist dealerships in developing their fair lending policy to address audits by lenders and regulators concerning ‘disparate impact’ credit discrimination.”
The ECOA Model Fair Lending Compliance Policy Template and Model Exception Rate Justification Sheet are available exclusively to Dealertrack Compliance Solution subscribers. For more information about Dealertrack’s Compliance offering, click here.
Additionally, Dealertrack announced that it will host a free webinar to provide an overview of the ECOA Model Fair Lending Compliance Policy Template and Model Exception Rate Justification Sheet, and how it can be used by dealerships to develop their own fair lending policy. To register, click here.