Indirect Lending News

Most Recent Indirect Lending Compliance Points

05/06/2008 - South Carolina Increases Its Delinquency Charge

The South Carolina Department of Consumer Affairs has issued its biennial dollar amount adjustments under the South Carolina Consumer Protection Code. Among other things, the amount that may be charged for a delinquency fee (or late charge) has increased from $15.50 to $16.50. Additionally, the minimum delinquency charge has been increased from $6.20 to $6.60.

Documents affected: This new law will affect the Wolters Kluwer Financial Services retail contracts for South Carolina that include a full description of the late charge:

RSSIMVLF-SC
RSSIMVLFA-SC
RSSIGSLF-SC
RSSIGSLFA-SC

The above also includes electronic versions of the documents.

Effective date: July 1, 2008.

04/04/2008 - Indiana Increases Its Delinquency Charge

The Indiana Department of Financial Institutions has issued its biennial dollar amount adjustments under the Indiana Uniform Consumer Credit Code. Among other things, the dollar limit on a delinquency charge has increased from $17.00 to $17.50.

Documents affected: This new law will affect the WKFS forms for Indiana that include a full description of the late charge:

  • RSSIMVLF-IN
  • RSSIMVLFA-IN
  • RSSIGSLF-IN
  • RSSIGSLFA-IN

plus electronic versions.

The effective date for this change is July 1, 2008.

02/21/2008 - DC Creates Disclosure Requirements for Arbitration Agreements

A new law in the District of Columbia will require the disclosure of certain costs associated with an arbitration agreement for a consumer purpose transaction.

The following information must be disclosed:

  • The filing fee;
  • The average daily cost for an arbitrator and hearing room if the consumer elects to appear in person;
  • Other charges that the arbitrator or arbitration organization will assess in conjunction with an arbitration where the consumer appears in person; and
  • The proportion of these costs which each party bears in the event that the consumer prevails, and in the event that the consumer does not prevail.

Documents affected: This new law will affect the WKFS documents that contain an arbitration agreement: RSSIMVLFA-DC, RSSIMVLFAZDC, RSSIGSLFA-DC, RSSIGSLFAZDC, MVL-CE-DC

Effective date: March 4, 2008.

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05/06/2008 As of Nov. 1 , 2008 auto dealers must comply with red flag rules
12/19/2007 Regulatory and legislative changes are planned for 2008
12/14/2007 California appellate case provides NOI guidance

Most Recent Indirect Lending Question

Question: With regard to indirect lending, if we do not approve an application as submitted and provide a counter-offer to the customer, must the counteroffer be submitted to the customer on an adverse action form?
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