Pub. 3 2014 Issue 2

Fall 2014 29 step 4 Appoint a Program Coordinator (PC) to develop and oversee the Program. The PC should have the necessary time, expertise, and seniority to perform this function. step 5 Direct the PC to establish the dealership’s pre-set SDPR and provide that the dealership will only deviate from the SDPR if an allowable business reason exists to include a lower amount of dealer participation in the offer of credit. • Identify the allowable businesses reasons when the dealership may deviate from the SDPR. (The NADA Program includes 7 allowable business reasons that support a deviation, such as the need to satisfy a customer’s monthly budget constraint, the need to meet or beat a more competitive credit offer, or the existence of a manufacturer subvention program for which the customer qualifies. These are the same seven reasons that are contained in the DOJ’s 2007 consent orders.) • Require each dealership employee who makes a credit offer to record on the Dealer Participation Certification Form at Appendix D (i) the SDPR, (ii) the final dealer participation rate, and (iii) where the two differ, the allowable business reason for deviating from the SDPR. • Ensure that the PC or his or her designee reviews the form to ensure it was properly completed. If it was ¬¬not, have the PC take necessary corrective action. (The reviewer should not have been involved in the transaction.) step 6 Establish the training, oversight, and reporting tasks that the PC must complete to ensure the Program is faithfully executed. This includes identifying the documentation that the employee making the credit offer must retain to support a deviation from the SDPR. MA INTA INING THE NADA PROGRAM As with any regulatory compliance program, ensure the dealership’s Fair Credit Compliance Policy & Program is continuously carried out and adjusted as necessary to meet its objective of strengthening the dealership’s efforts to comply with fair credit laws. The NADA Fair Credit Compliance Policy & Program is available as a pdf and the template program is available in MS Word format at www.nada. org/faircredit. Review the publication in full (including the disclaimers and limitations associated with the Program) and consult with the dealership’s legal counsel before deciding whether and how to adopt the Program. Reach your target audience a ordably. advertise get results DANI GORDEN Advertising Sales 855.747.4003 dani@thenewslinkgroup.com