If an applicant has been denied credit, federal government regulations require dealers to inform applicants why they have been denied. NCC’s adverse action solutions for auto dealers provides them with the necessary tools to ensure these notices are processed and delivered in compliance with the regulations.
According to federal rules, if “adverse action” is taken against a consumer based on information in a consumer report, the company must inform the customer; the most common type of ‘adverse action’ is, in fact, a denial of credit.
Under the Equal Credit Opportunity Act and the Fair Credit Reporting Act (FCRA), “adverse action” is defined as:
Parker Toyota, Parker Subaru, Parker Ford
D&M Leasing, Dallas/Ft. Worth/Houston
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