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Saturday 19 August 2017
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Dealers Must Disclose Bad Credit -Car Pro News

Dealers Must Disclose Bad Credit -Car Pro News

A federal judge says auto dealers who use consumers’ bad credit histories to charge them more interest on car loans must tell buyers they have negative information on their credit report, the Associated Press reports. It doesn’t matter if the loan is farmed out to a bank or finance company.

U.S. District Judge Ellen Huvelle issued the ruling in a battle between the National Automobile Dealers Association and the Federal Trade Commission. The law already requires that auto dealers who offer loans have to tell buyers if they’ll have to pay more in interest because of a flawed credit history.

The association was arguing that the law exempts third-party lenders, like a bank or finance company. The FTC contended that the dealers were still responsible for the notice.

Huvelle agreed and dismissed the association’s complaint, the AP says.




2 thoughts on “Dealers Must Disclose Bad Credit -Car Pro News

  1. Kailey

    Do you have any suggestions for car buyers with bad credit? Truthful places to shop? Best loaners to check out?

    Reply
    1. Michele Sanders Post author

      That’s a tough one for sure. Good dealers can help with a 20-25% down payment. Otherwise you are destined to bad places with high interest rates. I wish I could be of more help.

      Jerry Reynolds, President
      Car Pro Radio Network

      Reply

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