The FRB and FTC have released rules related to risk-based pricing practices by creditors that take effect 1/1/11; a notice is required when the creditor offers credit to the consumer on less favorable terms than it provides to other consumers. The FTC provides a sample (B-4) form for this purpose.
I am curious what dealers and lenders are doing to comply with this new rule?
Many credit unions have aggressive indirect programs. Dealers can sign up consumers who qualify to be members of the credit union giving them instant access the the CU’s programs. Some even offer residual based programs, mostly “balloons,” which dramatically lower payments.
I will take a look at the link you provided thank you. I couldn’t agree more dealers are tired of the regulations one after another but I don’t think they will easy enough sweep this one under the carpet! Going to get interesting.