When participating in indirect auto lending, does the requirement to provide the RBPN fall on the lender buying the paper or the auto dealer? Or is there the option for either the lender or the auto dealer to provide? I know there are timing requirements for providing this notice, so having one or the other provide may work better. Just trying to understand the requirements when auto dealers are involved.

Reg. V Section 1022.73(c)(2):

(2) Application to certain automobile lending transactions. When a person to whom a credit obligation is initially payable grants, extends, or provides credit to a consumer for the purpose of financing the purchase of an automobile from an auto dealer or other party that is not affiliated with the person, any requirement to provide a risk-based pricing notice pursuant to this subpart is satisfied if the person:

(i) Provides a notice described in §§ 1022.72(a), 1022.74(e), or 1022.74(f) to the consumer within the time periods set forth in paragraph (c)(1)(i) of this section, § 1022.74(e)(3), or § 1022.74(f)(4), as applicable; or

(ii) Arranges to have the auto dealer or other party provide a notice described in §§ 1022.72(a), 1022.74(e), or 1022.74(f) to the consumer on its behalf within the time periods set forth in paragraph (c)(1)(i) of this section, § 1022.74(e)(3), or § 1022.74(f)(4), as applicable, and maintains reasonable policies and procedures to verify that the auto dealer or other party provides such notice to the consumer within the applicable time periods. If the person arranges to have the auto dealer or other party provide a notice described in § 1022.74(e), the person's obligation is satisfied if the consumer receives a notice containing a credit score obtained by the dealer or other party, even if a different credit score is obtained and used by the person on whose behalf the notice is provided.

For those involved in indirect auto lending, is it your practice for you (the lender) to provide this notice or do you arrange to have the auto dealer provide? Currently, our set-up is to have the auto dealer provide, BUT some of our dealers are telling our staff that we are the only bank they deal with, that still requires the RBPN (risk-based pricing notice). Usually the dealer pulls the initial credit report and we obtain one as well, and loan rate is based in part on credit score. Dealer has RBPN generated with their credit report, provide a copy to borrower and also provide us the lender a copy (to verify it has been given, as every dealer in town would simply tell us they are doing this and then never give it). Curious how the timing requirements are met, if the lender is providing this notice, as it is required to be provided as soon as reasonably practicable after the credit score has been obtained, but in any event at or before consummation in the case of closed-end credit.

Original Anon here... any indirect lending folks want to share their practices regarding this notice????