National Automobile Dealers Association

NADA Provides Guidance on New Adverse Action Notice Disclosures

Watch the video Dealers and other creditors who use a credit score in taking adverse action — such as turning down a request for credit — are now required to include new credit score disclosures in their adverse action notices.

To help dealers comply with the new credit-disclosure rules, NADA has published an informational video, an AutoFocus interview with NADA's Brad Miller, and issued a new "Dealer Guide to Adverse Action Notices" and a new "Dealer Guide to the Risk-Based Pricing Rule." The guides are now available at To access the guides, sign in or sign up for NADA University; once you have logged in, visit the Resource Toolbox, select “Driven Management Guides,” then “Legal/Regulatory.”

The Driven Management Guides explain when dealers must issue an adverse action notice, what the notice must say, when dealers can rely on a finance source’s notice, and other important issues. The guides utilize numerous scenarios to aid understanding and includes a flow chart, sample notices, and other tools to assist dealers with compliance.

The guides are available at no cost to NADA and ATD members, and others may purchase them for a nominal fee. Members must sign in to access the guides. For assistance, contact NADA University Customer Service at (800) 557-6232.