Auto Loans Site Responds to New Credit Reporting Law

July 26, 2011 - PRLog -- AutoLoans.com, the go-to site for estimates on online auto financing, has published an editorial vigorously endorsing a law that went into effect last week that forces lenders to supply denied applicants for auto loans with a free copy of their credit scores. The law, part of the Dodd-Frank financial overhaul legislation, makes it incumbent upon financial companies to inform denied applicants of their credit standings.

“At Auto Loans, we could not be happier about this development. Our lenders are overwhelmingly pro-consumer, so they also support the law wholeheartedly. This law will help credit-challenged consumers understand why they didn’t qualify for an auto loan or credit card, which ideally will help them pinpoint specific ways they can improve their standing to receive approval,” explained Auto Loans spokesman Mick Ronson.

Prior to the law’s taking effect, one of the biggest disincentives for consumers accessing their credit scores was the often prohibitive cost of doing so. While all consumers are entitled to a free credit report from each bureau every year, these reports do not contain specific credit score numbers. Now, financial companies must disclose the figures they use in determining whether an applicant qualifies for an auto loan.

“This law will lead to much more transparency in the whole auto loan application process. Lenders know they have to reveal the figures by which they judge an applicant, and applicants no longer have to remain in the dark as to why they were denied financing. It’s a win-win situation,” said Mr. Ronson.

For more information, visit: http://www.autoloans.com or call (800) 609-1716.