The Federal Reserve has implemented new disclosure requirements at dealerships that provide financing to its customers.
The disclosure requirement is designed to educate consumers on the cost of financing, which is based largely on the customer’s credit history. The rules apply to any lender that bases credit terms on a customer’s credit score, including dealerships that arrange financing for customers.

The rule, which takes effect Jan. 1, 2011, will require dealerships to give their finance customers a written report showing their current credit score, the name of the credit reporting agency providing the score and either a bar graph or clearly worded statement telling customers how their scores rank against those of other U.S. consumers.

The new disclosure is similar to one currently in use in California.