Online Credit Applications, what do you do?

Shawn Vieira
How do you handle online credit applications? I am sure that there are rules and regulations pertaining to them, but I haven't seen anything specific. The most I have seen is "In an effort to better educate consumers on why they receive certain credit scores, and subsequently lending rates, the Federal Trade Commission has created a rule called Risk-Based Pricing Notice (RBPN). This rule requires dealers and other creditors who use credit reports to deliver a RBPN to consumers to whom the dealer will extend credit. This will enable consumers to check for accuracy and, if warranted, correct the scores they receive." What does this mean? What do I have to do?
Rob Fontano
The absolute best solution that I have found is through Dealer Track. If you are using Dealer Track to submit and process your deals, They have a tool that will allow you to frame in the dealer track secured credit into your website. When the app is completed a notification will hit your CRM in the form of a lead. You open DT find the customer and pull their credit right there. DT will also help you stay compliant. This tool costs around $100 a month. No more credit apps over the phone. Get the customers email and send a link to the app on your site. I do a tone of these through chat at my Nissan store.
Jim Radogna
Hi Shawn, here's a link to more info about the RBPNs: http://dealercomplianceconsultants.blogspot.com/2010/03/more-fun-from-fed-risk-based-pricing.html In a nutshell, you will need to send either a RBPN or a Credit Score Disclosure to your online credit applicants. The Credit Score Disclosure is much easier to use because you won't have to figure out if the customer needs a notice or not, you simply supply every customer who applies for credit with a credit score disclosure. DealerTrack, RouteOne and most of the credit bureau providers allow you to print the disclosure once you have run a credit report.
Manny Luna
Thanks Jim!
Shawn Vieira
Thank you, I have brought this up with our GM and he is looking into the Dealertrack portion of it.

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