JULY 5, 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

Upcoming Seminars

FREE Webinar: Compliance Insights - Straight From the FAA

Colorado Dealer Compliance Guide Roll-Out and Training


CALENDAR OF EVENTS
Upcoming Events

CADA Annual Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Grand Opening Unveils Larger Quarters for Pro

Ghent Has Roots in the Past, Eye on the Future

Share Your Accomplishmens

 

THE AFTERFACT

All the News That's Fit to Email!


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles
from the Open
Road e-newsletter.

CLICK HERE for Bulletin archives.

CLICK HERE for Colorado Auto
Outlook
archives.

CLICK HERE for Denver Auto
Outlook
archives.


ONLINE REGISTRATION

CLICK HERE to register online
for various CADA seminars & events.


MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources
.

CLICK HERE for a list of current
Endorsed Vendors/Programs
.

CLICK HERE for a list of current
Allied Members
.

CLICK HERE for an order form for
CADA forms
.

CLICK HERE for information on all member services.



www.nada.org


www.aiada.org

CLICK HERE for NADA
Regulatory Affairs information
.


STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division
of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section
of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment
website.




Visit us at www.coloradodealers.org.


CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.

open_sign


CADA STAFF

CLICK HERE for a CADA staff listing


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org

CLICK HERE or scroll to the bottom
of this page if you want to be
added or removed from our list.


Need Acrobat Reader
to view linked
documents?
CLICK HERE for a FREE
download from Adobe.


ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Vendors/Programs
.

 

 

 


If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.


* * * TUESDAY, JULY 12 * * *

DENVER - COLORADO DEALER
COMPLIANCE GUIDE ROLL-OUT AND TRAINING


NEW GUIDE SUMMARIZES, IN ONE PLACE, KEY AREAS OF
STATE COMPLIANCE AND ASSEMBLES VALUABLE
RESOURCES & INFORMATION

CLICK HERE FOR A SAMPLE TABLE OF CONTENTS!

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Event Description
Date/Time
Location

Colorado Dealer Compliance Guide Roll-Out and Training

Denver


Tuesday, July 12
7:30am - 11:00am
Breakfast/Networking 7:30am
Seminar begins at 8:00am
*Notice new time


William D. Barrow Building
CADA Headquarters, 290 Media Center
290 East Speer Blvd, Denver, 80203
Phone: 303.831.1722
Register Online!
CLICK HERE to fill out a registration form.

KEY DEALERSHIP STAFF TRAINING FOR OVERLOOKED COMPLIANCE AREAS AND RISK

  • Receive the new Colorado Dealer Compliance Guide AND atraining to review key highlights—for a reduced, bundled price.
  • Compliance is critical in every area of your dealership; minimize exposure to lawsuits
  • Training to be conducted by Colorado attorney and compliance guide author:

    Michael Dommermuth, McGloin, Davenport, Severson & 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 INDIANA UNIVERSITY AT BLOOMINGTON IN 1983.  MICHAEL HAS 26 YEARS OF EXPERIENCE REPRESENTING DEALERS THROUGHOUT COLORADaO 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. www.mdsslaw.com

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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.



…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. 

* * * * * * * *

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


a
FREE WEBINAR: COMPLIANCE INSIGHTS - STRAIGHT FROM THE FAA
Lessons learned from a meeting with the Federal Aviation Administration (FAA)

If you ship hazardous materials by air you won’t want to miss this webinar! Get the inside scoop on FAA inspection protocols, inspector pet peeves, and shipping best practices. KPA recently met with FAA inspectors to get a better understanding of their day-to-day practices. The candid discussion revealed information we can now share with you.

Presented by Peter Zaidel
Peter Zaidel manages KPA’s EH&S compliance offerings. He monitors OSHA changes and heads up KPA’s learning management and content development. Peter holds a Bachelor of Science degree in Environmental Resource Management and Environmental Engineering from Penn State University.


Thursday July 7, 2011

10:00am - 11:00am Mountain

Register Online!

* * * * * * * *

COLORADO DEALER COMPLIANCE GUIDE ROLL-OUT AND TRAINING!
NEW GUIDE SUMMARIZES, IN ONE PLACE, KEY AREAS OF STATEa COMPLIANCE AND ASSEMBLES VALUABLE RESOURCE INFORMATION

Key dealership staff training for overlooked compliance areas and risk:a

  • 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

Denver
*Second Session Added!*

Tuesday, July 12
7:30am - 11:00am
Breakfast included

Register Online!

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.

* * * * * * * *

aTO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.coloradodealers.org/registration
Event Description
Date/Time
Location

Colorado Dealer Compliance Guide Roll-Out and Training

Denver


Tuesday, July 12
7:30am - 11:00am
Breakfast/Networking 7:30am
Seminar begins at 8:00am
*Notice new time


William D. Barrow Building
CADA Headquarters, 290 Media Center
290 East Speer Blvd, Denver, 80203
Phone: 303.831.1722
Register Online!
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 lauren.stadler@coloradodealers.org



Event Description
Date/Time
Location

CADA
Annual Golf Event



Monday, September 12, 2011

Usually a 12:00pm Shotgun Start


Green Gables Country Club
6800 West Jewell Avenue
Denver, 80232

Registration coming soon!




GRAND OPENING UNVEILS LARGER QUARTERS FOR PRO

A festive gathering Thursday evening celebrated the grand opening of the expanded and remodeled Pro Chrysler Jeep Dodge Ram dealership at 1800 W. 104th Ave. John Schenden, left, longtime owner of the Pro operation, is joined by two other widely known dealers, Doug Moreland of the Denver area and Fritz Hitchcock, right, of California.

CLICK HERE for the full artcle!

* * * * * * * *

GHENT HAS ROOTS IN THE PAST, EYE ON THE FUTURE

Ghent Motor Co. has seen its share of ups and downs since it opened its doors in 1942 as a Ford dealership in Fort Collins. Two generations later, Bob Ghent is carrying on what his grandfather started, selling Chevrolets and Cadillacs at the corner of 35th Avenue and U.S. Highway 34 in Greeley.

Bob Ghent took over the dealership from his father in 1988, building a new facility in 1991 and adding the Cadillac brand to the lineup in 2001. In April, Ghent Motors was the highest volume Cadillac dealership in Northern Colorado, according to Ghent.

CLICK HERE to read the full article.

* * * * * * * *

LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!

Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.


THE AFTERFACT


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To remove yourself from this list, click on this link.

Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org