Time: 9:30 am - 11:30 am
|Board meetings are open to all MADA dealers. You do not need to be a board member to attend, but participation is limited to MADA dealers or a manager designated by the dealer.|
|MADA dealers and dealership staff are invited to join us for a virtual meeting with Paul Metrey from NADA. Mr. Metrey is the vice president of Regulatory Affairs and chief regulatory counsel, financial services, privacy and tax for NADA. He represents dealer interests before, and educates dealers on regulations promulgated by, federal executive branch agencies that oversee dealer operations.|
|This special speaker program will be held in conjunction with the MADA board meeting.|
|Wednesday, May 19, 2021 via Zoom (register)|
MADA Board Meeting at 9:30am
We ask our board members to join us at 9:30am for an update on the association, plus a review of current legal and state regulatory issues. You do not need to be a board member to attend, but participation in the board meeting is limited to MADA dealers or a manager designated by the dealer.
NADA Presentation from 10:30-11:30am, with time for Q&A
The meeting will then open to all (including dealership staff) at 10:30am. The presentation from Paul Metrey with NADA will cover two issues that are becoming increasingly important for dealers and staff to understand — fair credit compliance and voluntary protection product rules. NADA has worked with other dealer advocacy groups to develop policy guides that dealers can adopt to maintain compliance. Mr. Metrey will review these guides and help dealers understand their federal responsibilities.
Fair credit compliance
Consumer advocacy groups have long argued that the portion of the APR that dealers earn for originating a credit contract – known as dealer participation or dealer reserve – is charged by dealers in an arbitrary and inconsistent manner that can lead to unlawful credit discrimination against consumers. The Department of Justice has stated that exercising pricing discretion presents this risk, but that there are also ways to manage it.
The optional Fair Credit Compliance Policy & Program adopts and builds on the DOJ approach to both ensure consumers are offered fair access to credit and protect dealers against pricing discrimination claims. As this issue is expected to gain considerably more attention in the months ahead, it is essential that dealers understand this threat and an effective way to address it.
Voluntary protection products
Many consumer advocacy groups have also advanced a series of concerns about voluntary protection products and called on the government to enact new measures to address them. It’s important to understand the threat to voluntary protection products.
The optional Model Dealership Voluntary Protections Products Policy addresses each major area of concern by offering dealerships a series of principles and actions it can adopt to strengthen its selection, offering, presentation, and sale of VPPs. Coupled with any additional requirements at the state or local level, this can foster a better customer experience while helping to protect the dealership.
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