thesubprimereport
12-21-2007, 06:41 AM
Hello,
If you're a special finance manager you probably see very bad credit every day. If you think you can't get a customer a loan, you should be careful before sending that customer home. The Equal Credit Opportunity Act (ECOA) has specific rules regarding credit decisions, and you might be putting yourself in a bind if you don't know the rules.
Make sure you submit these type of customers to at least one lender. Let them decide they can't get a loan. Don't make that decision yourself. If you do, you're subject to the same rules many large lenders have to follow every day. You don't want that kind of responsibility.
If you're looking for more information on this, I wrote about this in my blog at http://thesubprimereport.com/special-finance-department-ecoa.
To your success.
Best,
Jim Wagner
If you're a special finance manager you probably see very bad credit every day. If you think you can't get a customer a loan, you should be careful before sending that customer home. The Equal Credit Opportunity Act (ECOA) has specific rules regarding credit decisions, and you might be putting yourself in a bind if you don't know the rules.
Make sure you submit these type of customers to at least one lender. Let them decide they can't get a loan. Don't make that decision yourself. If you do, you're subject to the same rules many large lenders have to follow every day. You don't want that kind of responsibility.
If you're looking for more information on this, I wrote about this in my blog at http://thesubprimereport.com/special-finance-department-ecoa.
To your success.
Best,
Jim Wagner