Satisfies ECOA and FCRA Requirements

Put in the simplest terms, Adverse Action is an explanation of credit denial or the inability to come to acceptable terms by either the dealer offering credit terms or the applicants counter offer of credit terms. Once a credit report is obtained, dealers are considered a creditor for ECOA and FCRA purposes and are subject to their adverse action notice requirements. Dealers are required to send adverse action notices to their customer within 30 days of receiving a consumer credit application in the following three scenarios:

  • When a deal is unwound or a spot delivery deal is re-contracted.

  • Upon receipt of a consumer credit application but the application is not sent to a finance source for review.

  • When the dealer cannot get the customer financed because they did not receive an acceptable credit offer from a lender or the customer rejects the dealer's final offer of credit terms.

Adverse Action Notice Fulfillment

Let CBC take the time, hassle, and worry out of your adverse action notice compliance requirement for your business. CBC will send adverse action letters to the appropriate customers, on your dealership's behalf, to satisfy your compliance requirements.

Features and Benefits

  • Eliminates the need of sorting through deal jackets and dead deal files to determine who requires a letter.

  • Eliminates additional labor costs and the probability of human error thus providing a potential substantial cost savings.

  • Allows you to select the criteria by either deal status or credit score.

  • The only fulfillment service to send letters twice monthly to meet the 30 day compliance timeframe requirement.

  • Supplies a monthly summary report of all letters generated and sent.

  • Automatically stores an electronic copy of the adverse action letter in the eVault.

  • Providing a permanent audit trail.

  • Requires no long term contract and no set up fees.