Thursday, August 16, 2007

The Actual Federal Regulations Governing Dealership F&I Operations

by: AFI

Sometimes I get requests for the ACTUAL Federal Regulation title and part numbers so that Dealers can look them up for themselves. (like they don't believe me or something.) Like a lot of legalese, this reading can be somewhat "less than riveting" but here they are, enjoy. AFI

bookmark these resources if you choose:

The Federal Reserve Board announces regulatory revisions, proprosed changes, and other rulemaking activities in press releases. To view the Board's releases, visit:

The FRB also provides links to the full text of the regulations, but the boards postings are only updated annually, on Jan 1. For the more up-to-date regulation text, visit the "Electronic Code of Federal Regulations" which is updated DAILY:

Now for what you've been EAGERLY waiting for: To search for a regulation, you need to know it's title and part number in the course text, the title and part are identified in the subhead of the regulation. For example, Federal Regulation Z is Title 16, Part 226 - referenced as "16 CFR 226." On the e-cfr index page (the link is directly above this paragraph) you'll select the title number in a pull-down menu and then follow the links until you reach the desired regulation.

Most of the Regulations that directly impact Automotive F&I fall under Title 12, Banks and Banking, and Title 16, Comercial Practices.

Keep the following list of regulations and their title and part designations handy for quick reference:

Title 12 Banks and Banking

Regulation B - 12 CFR 202 Equal Credit Opportunity Act
Regulation M - 12 CFR 213 Consumer Leasing Act
Regulation Z - 12 CFR 226 Truith in Lending Act

Title 16 Commercial Practices

Privacy Rule - (Privacy of Consumer Financial Information) 16 CFR 313 (G-L-B Act)
Safeguards Rule - (Safeguarding Customer Information) 16 CFR 314 (G-L-B Act)
Holder-in-Due-Course Rule - 16 CFR 433
Credit Practices Rule - 16 CFR 601-629

Try to memorize these if possible. Practical application will help bullet proof your Dealership.

Until next time,


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