WSADA recommends dealerships adopt the NADA Fair Credit Compliance Policy & Program and the Voluntary Protection Products Model Dealership Policy
The WSADA Board of Directors voted unanimously to direct the Association to recommend that dealerships adopt the NADA Fair Credit Compliance Policy & Program and the Voluntary Protection Products Model Dealership Policy — or a similar compliance policy created by their F&I provider — as part of their dealership’s internal compliance programs.
The NADA programs were developed to help dealerships avoid Equal Credit Opportunity Act issues in the sale of credit and voluntary protection products. The recommendation is not a requirement, however the Consumer Financial Protection Bureau has taken significant action that limited dealer flexibility on both topics under previous administrations and dealers may again see increased scrutiny under the next administration.
The programs are designed to allow dealerships the flexibility needed to complete car sales while documenting that any changes to the usual terms of sale are made without discriminatory intent.
NADA/NAMAD/AIADA Fair Credit Compliance Policy & Program
- Program Overview: www.nada.org/faircredit
- Policy & Program document: https://www.nada.org/WorkArea/DownloadAsset.aspx?id=21474838176
NADA/NAMAD/AIADA Voluntary Protection Products: A Model Dealership Policy