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Auto Dealers Must Share Poor Credit History: Fed Judge

A federal judge has said that car dealers must reveal to consumers the latter’s credit histories when it is the unhealthy state of these histories that are the reason for the interest rate on their auto loan to be increased.

Ruling on a courtroom fight between the Federal Trade Commission and the National Automobile Dealers Association, U.S. District Judge Ellen Huvelle said that this negative information must be released even if their bad credit auto loans are offered through a third party such as a finance company, credit union or bank. The NADA plans to appeal the decision that requires vehicle dealerships to inform consumers that their bad credit is being used to charge them higher interest.

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The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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