Adverse Action

Fully Compliant Adverse Action Solutions

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:

  • a denial or revocation of credit
  • a refusal to grant credit in the amount or terms requested
  • a negative change in account terms in connection with an unfavorable review of a consumer’s account

As an important element of conducting business, adverse action solutions for car dealers are vital.

As a leader in the industry, NCC works hard to provide innovative solutions for its clients. To that end, NCC’s adverse action solutions for car dealers include two options for helping dealerships comply with adverse action requirements:

  • In-house notifications – Dealerships that prefer to handle Adverse Action notifications in-house can use letter templates that are within the NCC system for free. In this case, the dealership handles incoming customer calls.
  • Delivery service – For clients who prefer to save time while meeting compliance requirements, NCC offers an Adverse Action delivery service that includes the printing and mailing of the Adverse Action reports. The service also includes the fielding of incoming consumer calls.

NCC’s adverse action solutions for auto dealers are just another way NCC works in partnership with its dealer clients to help ensure their continued success.

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