Pub 20-2021-2022 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 17 new jersey auto retailer W W W . N J C A R . O R G appoints a senior dealership official to serve as the Program Coordinator ( PC ). The PC oversees the program’s implemen- tation and maintenance by establishing the SDPR, conducting initial and periodic training, reviewing pricing certification forms, submitting an annual compliance report to the board, and performing other related tasks. The program explains each of these steps in detail. Since its inception, the NADA Fair Credit Compliance Program has gained widespread support from many prominent observers both within and outside of the industry, including the American Bar Association, which overwhelmingly approved a resolution at its 2020 annual meeting that, in part, urges governments at all levels to offer “a safe harbor against pricing discrimination claims for dealers that faithfully implement the NADA/NAMAD/AIADA Fair Credit Compliance Policy and Program .” A CFPB Taskforce on Federal Consumer Financial Law made a similar recommenda- tion to the CFPB and the Federal Reserve Board in January 2021. The FTC has also seen value in this approach to managing pricing discretion. It included the framework and many NADA Fair Credit Compliance Program elements in a May 2020 con- sent order it entered into with an automobile dealership to settle allegations of intentional credit discrimination. Notwithstanding its broad support, the NADA Fair Credit Compliance Program remains optional. Its adoption does not guarantee that a dealer will be protected from liability for a fair credit violation. However, if faithfully adopted, implemented and maintained, the NADA Fair Credit Compliance Program provides a dealer with a well-regarded path forward in a very challenging environment. This should not be overlooked when a dealer discusses with its attorney how it will ensure the fair and lawful treatment of its customers. This article is offered for informational purposes only and is not intended as legal advice. Paul D. Metrey is the Vice President, Regulatory Affairs and Chief Regulatory Counsel, Financial Services, Privacy, and Tax for the National Automobile Dealers Association. He can be reached at pmetrey@nada.org . Learn more about the NADA Fair Credit Compliance Program at www.nada.org/faircredit. Many finance sources that are assigned credit contracts compensate dealers with non- discountable flat fees.