Tuesday, June 19, 2012
Car Dealers Must Disclose Reliance on Negative Credit History to Raise Car Loan Interest Rate
On May 31, 2012, the U.S. District Court for the District of Columbia held that the Fair Credit Reporting Act requires a car dealer to disclose to a car buyer that negative credit history resulted in a higher interest rate on the buyer's car loan - even if the dealer was not the one that reviewed the credit history because only a bank or finance company did so. The case is National Automobile Dealers Association v. Federal Trade Commission, Civ. A. No. 11-1171 (ESH).