Interest Rate Disclosure

I recieved a letter from our Motor Vehicle Purchase Agreement vendor indicating that we needed to order new forms. The letter indicated that the forms are being revised to comply with recent changes to Regulation B affecting interest rate disclosure.

I searched the reg B revisions and could not find any reference to interest rate disclosure... so I called the rep that sent me the letter.

In truth... they have been advised by their attorney to make a change to the agreement due a recent GMAC settlement. The verbiage that is being added is as follows:

Notice to Buyer: The Annual Percentage Rate may be negotiated with the Dealer. The Dealer may assign this contract and retain its right to receive a part of the Finance Charge.

This is not a requirement and our current forms are still valid. However... they feel that this will eventually be a requirement.

Anyone heard anything on this?

See if this helps. It came from our forms vendor.

"As part of a recent settlement agreement, GMAC has agreed to include a new disclosure in all of their contracts. Because of this, many XXXX customers have requested the same disclosure on their auto contracts. This disclosure addresses the fact that the Borrower may negotiate the APR with the Seller and, if the contract is assigned, the Seller may retain part of the Finance Charge. At this time, there is no regulatory requirement to include this disclosure on the Auto Contract; it is solely a business decision to be made by XXXXX customers.

XXXX is always responsive to customer requests and, as a result, we have developed auto contracts containing this disclosure. Previous revisions of XXXX auto contracts without the disclosure will also continue to be available."