Although written authorization is excepted by GLBA, How is your bank verifying that the customer has authorized the release of their information (payoff request) to the dealer? If you use another method, could you post it? We are trying to decide on alternatives.

Thanks!

Exactly what non-public information are you releasing to the dealer? Your contract with the dealer should already specifically require that the applicant be informed that their application is being forwarded to you. If not, the communication of the credit decision back to the dealer would make you a credit reporting agency. Aren't they acting as the consumer's representative at this point?

I imagine Chris W is talking about payoff requests. Which, in my opinion, should not be released without a written authorization.

Thanks. I did mean to say payoff requests!

You will find it in the old FCRA Commentary. There is no reason to believe that this section of the FCRA would be interpreted any different today:

"(3) How third party creditors can insure that the exemption applies.

Creditors, who are requested by dealers or merchants to make such specific extensions of credit, can assure that communication of their decision to the dealer or merchant will be exempt under this section from the term "consumer report,'' by having written agreements that require such parties to inform the consumer of the creditor's name and address and by complying with any applicable provisions of section 615."


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