JUNE 28, 2011
IN THIS ISSUE
DEALER NEWS & INFORMATION
– Auto Industry News at a Glance
REGULATORY & LEGAL UPDATES
– Changes to Federal Adverse Action Notices - Take Effect July 21, 2011
– Upcoming Seminars
– Colorado Dealer Compliance Guide Roll-Out and Training
CALENDAR OF EVENTS
– Upcoming Events
– CADA Annual Golf Event
HIGHLIGHTS & TRANSITIONS
–Share Your Accomplishmens
–All the News That's Fit to Email!
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AUTO INDUSTRY NEWS AT A GLANCE
Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.
- Colorado Auto Dealers chief Jackson named state’s top association exec
Denver Business Journal, June 22
Tim Jackson, president of the Colorado Automobile Dealers Association (CADA), was named Colorado’s “Association Professional of the Year” on Wednesday by the Colorado Society of Association Executives (CSAE).
- Tim Jackson named the Association Professional of the Year by the Colorado Society of Association Executives
The Denver Post, June 23
Jackson, who has been president of CADA since 2004 and served as CSAE's president in 2001-02, is one of 41 association executives who have earned the Certified Association Executive designation in Colorado.
- Chrysler's rebirth shifts into next gear with new flexibility
The Detroit News, June 24
By no means can anyone declare victory at Chrysler, but things have improved drastically.
- Denver Post deals with 4 percent budget cut, shrinkage in features and sports sections
Denver Wesword Blogs, June 22
The newspaper industry remains under economic assault, as shown by Gannett laying off 700 employees yesterday, including two at the Fort Collins Coloradoan, not to mention the recent closure of the Denver Daily News.
- Ford falters as Toyota recovers in J.D. Power 2011 quality study
Detroit Free Press, June 24
Toyota recovered and Ford stumbled in J.D. Power's 2011 initial quality study, which found consumers increasingly critical of complex technology designed to allow smartphone use in cars.
- Final Bugatti Veyron 16.4 spoken for
Auto Week, June 24
If you've always wanted a new Bugatti, you'll have to settle for the Grand Sport: All 300 cars in the Bugatti Veyron 16.4 model run have found homes, the last one having been ordered by a European customer who will take delivery next autumn.
- Racer ‘Monster’ Tajima Seeks Pikes Peak Record Sunday
The Wall Street Journal, June 24
Competition in the 89th annual Pikes Peak International Hill Climb in Colorado Springs this Sunday is especially intense this year with Nobuhiro “Monster” Tajima bent on finishing the 12.42-mile, 156-turns course in less than 10 minutes.
- Deconstructing Car Dings in the Driveway
The Wall Street Journal, June 23
If the damage is smaller than a football, you may be able to bypass the body shop and still get the dings fixed.
- Technology offers distracted-driving solutions
Tim W Jackson, Wordpress Blog
See more at http://timwjackson.wordpress.com
- June car, truck sales to rebound, analysts say
Detroit News, Autos Insider
See more at www.autosinsider.com
- Reviewing the 2011 Chrysler Town & Country
The New York Times, Wheels
See more at http://wheels.blogs.nytimes.com
- Tesla stops taking electric roadster orders this summer
USA Today, DriveOn
See more at http://content.usatoday.com/communities/driveon/index
- Kia signs Clippers' Blake Griffin to multiyear sponsorship deal
Los Angeles Times, Autos
See more at http://www.latimes.com/classified/automotive/highway1/
- Best Deals: Fourth Of July Savings
See more at http://autos.aol.com/
- The Fuel-Sipping Prius Gets a Bigger Brother
The Wall Street Journal CARS
See more at http://online.wsj.com/public/page/news-autos-automotive.html
- MyFord Touch drags on Ford quality
See more at http://money.cnn.com/autos/
…more news articles are included at the end of this issue.
CHANGES TO FEDERAL ADVERSE ACTION NOTICES - TAKE EFFECT JULY 21, 2011
A new federal disclosure requirement takes effect July 21, 2011 (the designated transfer date under the Dodd-Frank Act). Section 1100F of the Dodd-Frank Act requires that creditors add the following items to their adverse action and risk-based pricing notices*:
1) consumer’s credit score;
2) the range of possible credit scores under the model used to generate the score;
3) key factors that adversely affected the consumer’s credit score in the model used;
4) date on which the score was created; and
5) name of the person or entity that provided the credit score.
The key factors (the third item) explain the credit score and are provided by the entity that provided the score. Creditors must list up to 4 key factors or, if one of the key factors is the number of inquiries made with respect to that credit report, then the creditor must list up to five key factors.
*NOTE: The changes to the risk-based pricing notice do NOT affect dealers who issue credit score disclosure exception notices in lieu of risk-based pricing notices (most dealers are issuing the ‘exception’ notice that is sent to ALL consumers who request credit—the simplified alternative to determining who received “substantially less favorable” terms).
Visit the December 17, 2010 issue of Open Road for more on the Risk Based Pricing Notices.
Regarding the changes to the adverse action notice, the new disclosures apply to creditors who used a credit score in taking “adverse action” (generally means ‘denied’ or no financing could be obtained). The new disclosures add to the disclosures that must be made under the Fair Credit Reporting Act. (Keep in mind that the Equal Credit Opportunity Act imposes on participating creditors who take adverse action a separate adverse action notice requirement with different disclosures).
The Federal Reserve Board has not finalized the changes to its model forms. NADA and several vendors that produce adverse action notices for dealers are also waiting on the Board to release its final model forms before modifying their own.
NADA is developing the following resources to assist dealers in complying with the new requirements:
- a short video that generally outlines the forthcoming disclosure requirements: http://esp.vtsystem.net/sites/nada_new_disclosures_2011/
- a revision to NADA's Driven adverse action guide will be released shortly after the Federal Reserve Board finalizes the modifications to its model adverse action notice forms (dealers will be able to access the guide at www.nadauniversity.com); and
- a Learning Hub webinar on the new requirements that is scheduled for Wednesday July 6, 2011 from 1 - 3 p.m. Eastern Time. To register, call 800.557.6232 or sign in to NADAuniversity.com, visit the NADA U Store, then select Products, then Webinars & Seminars.
DealerTrack has indicated that it will have a solution in place (for no charge) for dealers for the new adverse action requirements by the July 21st date, as follows:
- the dealer will be able to automatically generate a completed adverse action notice, including the “key factors” requirement, as long as it pulls its credit reports and credit scores for the customer through DealerTrack.
- the dealer will need to load their credit bureau codes into DealerTrack (no charge for this either)
- there is a separate adverse action manager subscription product that allows batch printing of adverse action notices and an option whereby DealerTrack will mail the notices for the dealer.
- They will also publish a blank adverse action notice form that a dealer can complete manually if it does not pull its credit bureaus through DealerTrack. This will require the dealer obtain the credit score and related information from the credit bureau or other source.
Other credit application management system vendors will likely also make the new disclosure information and forms available. Check with your vendors before purchasing forms elsewhere.
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If you have questions on any legal or regulatory topic, please contact:
DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance
COLORADO DEALER COMPLIANCE GUIDE ROLL-OUT AND TRAINING!
NEW GUIDE SUMMARIZES, IN ONE PLACE, KEY AREAS OF STATE COMPLIANCE AND ASSEMBLES VALUABLE RESOURCE INFORMATION
Key dealership staff training for overlooked compliance areas and risk:
- Receive the new Colorado Dealer Compliance Guide AND training to review key highlights—for a reduced, bundled price.
- Compliance is critical in every area of your dealership; minimize exposure to lawsuits
*Second Session Added!*
Tuesday, July 12
7:30am - 10:00am
CLICK HERE to fill out a registration form.
New compliance guide developed jointly by CADA and Colorado dealer attorney:
Michael Dommermuth, MCGloin, Davenport, Serverson & Snow, P.C.
AN ATTORNEY WHO SPECIALIZES IN REPRESENTATION OF MOTOR VEHICLE DEALERS. MICHAEL IS A MEMBER OF NATIONAL ASSOCIATION OF DEALER COUNSEL, A NATIONAL ORGANIZATION OF ATTORNEYS WHO REPRESENT DEALERS. MICHAEL EARNED A BACHELOR’S DEGREE FROM PURDUE UNIVERSITY IN 1980 AND JURIS DOCTORATE FROM THE UNIVERSITY OF INDIANA AT BLOOMINGTON IN 1983. MICHAEL HAS 26 YEARS OF EXPERIENCE REPRESENTING DEALERS THROUGHOUT COLORADO AND THE ROCKY MOUNTAIN WEST. MICHAEL’S FIRM PROVIDES FULL SERVICE REPRESENTATION OF MOTOR VEHICLE DEALERS INCLUDING, BUY/SELL AGREEMENTS, LITIGATION, FINANCE, FRANCHISE, MANUFACTURER DISPUTES, BANKRUPTCY, DEALER SUCCESSION, CLASS ACTIONS AND FEDERAL AND STATE COMPLIANCE. MICHAEL HAS SUCCESSFULLY DEFENDED DEALERS IN CLASS ACTIONS CHALLENGING D&H AND THE FOR DAMAGES UNDER THE TELEPHONE CONSUMER PROTECTION ACT.
* * * * * * * *
Colorado Dealer Compliance Guide Roll-Out and Training
*Sold Out - Second Session Added!
Wednesday, June 22
NEW: Tuesday, July 12
7:30am - 10:00am
William D. Barrow Building
CLICK HERE to fill out a registration form.
If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or email@example.com
Annual Golf Event
Monday, September 12, 2011
Usually a 12:00pm Shotgun Start
Green Gables Country Club
6800 West Jewell Avenue
Registration coming soon!
LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!
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