Disclose credit reporting to customers

Hey Everyone.

We just got approved to report with Transunion (2-3 months waiting period for testing)
My question is now that will be reporting do we need to notify customers and is there a certain text/disclousure/law we must include in our notices to our customer?

Not too many resources online for this and any help is greatly appreciated!

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Comment by Grace Romero on April 18, 2013 at 5:00pm
Chris Lottomon,

I cannot reply to your message for some reason, but please email to Grace@autoshowflorida.com

Thank you.
Comment by Cagdas Ucar on April 18, 2013 at 3:07am

I work for Carsinia online dealer management system. I'm not sure about Transunion specifically but we provide our credit reports through CredCo (which in turn gets them from 3 bureaus). I think in a couple of states there is a specific notice you need to give to the customer (if my memory serves right Minnesota and California?). In other states it's good practice to give something to the customer that a notice about their credit report along with the scores. CredCo automatically takes care of it and brings the reports with these notices. I know that Wolters Kluwer (bankers system) has a credit disclosure form as well - your DMS may carry that one or something similar. 

Comment by Grace Romero on April 16, 2013 at 4:45pm
Chris,

Yes with Transunion it is a minimum of 100 accounts.
Comment by Grace Romero on April 16, 2013 at 4:44pm
:) Done Chris, We are officially friends :)
Comment by Chris Lottman on April 16, 2013 at 4:12pm

Grace, I just sent a friend request? to you. Once you accept, I'll be able to message you to get the email I need to send you the privacy policy template.. company names redacted of course :P

Comment by CHRIS on April 16, 2013 at 4:05pm

We are in the process of reporting with Experian, they don't have a limit on accounts, but it too is a few month process, Do you have to have 100+ accounts to report with Transunion?

 

Comment by Grace Romero on April 16, 2013 at 3:53pm
Chris, Yesssss please!! :)That would be greatly appreciated!
Comment by Gene Daughtry @ Dealers411.net on April 16, 2013 at 3:01pm

Make sure your credit application has a disclosure where you tell the customer signing that your checking their credit and the information can be used to collect the debt. You will need an Adverse Action Letter for every customer you do not deliver and you have to provide a Risk Based Pricing disclosure even though you should charge everyone the same interest rate.

Make sure you store every bureau you pull with associated documents for 25 months.

Good Luck

Comment by Chris Lottman on April 16, 2013 at 2:45pm

Yes, echoing what Gene said, you should have a privacy policy in place to let customers know where and how you share their information. They don't have to sign it, but at the very least have it with the packet of info you give them upon purchase. If you need a template of a decent and very general privacy policy let me know.

Comment by Grace Romero on April 10, 2013 at 12:12pm
Thank you for your feedback Gene. It is greatly appreciated.

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