At a glance
- Credit notices
- Adverse action in 30 days; risk-based pricing before signing
- Identity
- Red Flags program and ID check
- Data
- Safeguards Rule
- Add-ons
- Optional, disclosed, agreed to
On this page
The F&I rules in one table
| Rule | What it asks of F&I | Cite |
|---|---|---|
| Equal Credit Opportunity Act | No discrimination; adverse action notice within 30 days; keep records 25 months | 12 CFR 1002.9, 1002.12 |
| Fair Credit Reporting Act | Credit score details on adverse action; risk-based pricing notice | FCRA 615; 12 CFR 1022.72 / 16 CFR 640.4(b) |
| Red Flags Rule | A written identity theft program and ID checks | 16 CFR Part 681 |
| Privacy Rule | Privacy notice at signing; opt-out before sharing | 16 CFR Part 313 / 12 CFR Part 1016 |
| Safeguards Rule | Protect credit applications and deal files | 16 CFR Part 314 |
| OFAC | Never deal with a blocked person | 31 CFR Part 501 |
| Form 8300 | Report cash of more than $10,000 | 26 CFR 1.6050I-1 |
| FTC Act section 5 | No deceptive pricing, fees or add-on sales | FTC pricing FAQs |
| Truth in Lending | Accurate disclosures on the contract and in ads | Reg Z |
Selling add-ons the right way
Service contracts, GAP, appearance packages and the like are legal to sell. What gets dealers in trouble is selling them as if they were required, adding them without clear consent, or hiding them in the payment. The FTC's pricing FAQs say not to present optional add-ons as required, and its recent orders, such as Leader Automotive Group's, require express, informed consent for add-ons and fees.
- Quote the deal without add-ons first.
- Show each add-on with its price and say it is optional.
- Get the buyer's signature on each one, and keep it in the jacket.
Fair lending
Several FTC dealer cases since 2022, including Napleton, Passport Automotive and Rhinelander Auto Center, alleged discrimination against some buyers in financing terms or add-on charges, alongside junk fees. Set markup and add-on pricing by written policy, apply it the same way to every buyer, and keep records showing you did.
An F&I office routine
Before credit is pulled
Check the buyer's ID against the application and run the OFAC search.
When credit comes back
Act on any credit bureau alert, decide which credit notice applies, and keep the application.
At signing
Give the privacy notice and the risk-based pricing or credit score notice, present add-ons as optional, and get signatures.
If cash is involved
Log every cash payment and file Form 8300 within 15 days once cash passes $10,000.
After the deal
Check the deal jacket for missing pages or signatures before it leaves the office.
Rules checked and limits
Rules checked October 31, 2026. We read every rule on this page in the eCFR or on the agency's own site, and each is linked in the sources below. We re-check them every quarter.
Templates and tools, not legal advice. CarShots is software, not a law firm. For a question about your own dealership, ask your attorney or your state dealer association.