Read the full publication on the FTC website for more information: Fair Credit Reporting Act

What is it?

The Fair Credit Reporting Act (FCRA) protects consumer information shared with agencies such as car dealerships. This helps to ensure the accuracy and fairness of the details collected in consumer credit bureau files. Information in a report cannot be provided to anyone who does not have a purpose specified in the Act. 

What am I required to do?

Being a user of the information reported in consumer data files, you must notify the customer when adverse action is taken on the basis of such reports. Additionally, as a dealership, you must follow the Act and its requirements to operate in a lawful and fair manner that is deserving of your consumer. 

When do I need to complete these changes by?

You should not run a credit report until you get the consumer's written consent or if the customer shows that they intend to purchase the vehicle by credit or check. If you fail to comply with the FCRA, you may be involved in legal battles and face severe fines. With Compliance Prep, we can help you avoid this situation. Sign up today.