Skip to content
BOL Conferences
Thread Options
#1142287 - 03/09/09 06:31 PM FTC Notice for Dealer Paper
Compliance Lover Offline
Platinum Poster
Joined: Aug 2008
Posts: 555
I'm not very familiar with this subject, but I'm working on an audit for Unfair & Deceptive Practices. We have a car dealer that completes the loan documents for his customer and then we have the loan on our books. The audit says according to the FTC Rule we are supposed to have a required FTC Notice in at least ten point bold face type on the credit document they receive. So far, I haven't found that anywhere. Does anyone know if that is normally printed on the note itself or if it is a separate piece of paper or what?

Return to Top
Lending Compliance
#1142750 - 03/10/09 03:41 PM Re: FTC Notice for Dealer Paper Compliance Lover
ktac MITCH Offline
Diamond Poster
ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
It has been a few years since I was at a bank that had an active Dealer Paper program BUT - the best I remember the FTC Notice referrs to a part of the "Holder in Due Course" concept and is to protect the bank from being held to any warranty requirements that the dealer / original creditor may have.
I think the statement was part of the standard retail installment sales contract / note that the dealer completed.
_________________________
My opinions are just that, and might be worth what you paid for them.

Return to Top

Moderator:  Andy_Z