At a glance
- Who it's for
- Car dealers who write retail installment contracts, and lenders who want to know who owes the notice.
- Who sends it
- The dealer, when the contract is first payable to the dealer
- When
- Before the contract is signed
- Alternative
- A credit score disclosure notice to every applicant
On this page
Who sends the notice on an assigned contract
The FTC's dealer version of the rule answers this directly. 16 CFR 640.4(b)(1): "The motor vehicle dealer to whom a credit obligation is initially payable must provide the risk-based pricing notice ... even if that motor vehicle dealer immediately assigns the credit agreement."
The rule's own example (640.4(b)(3)(i)) is a retail installment sales contract: the dealer is the original creditor and gives the notice, and the bank or finance company that buys the contract has no duty to.
When a bank or finance company is the original creditor (direct lending), the lender owes the notice. It may arrange for the dealer to hand it over, and it must check that the dealer does (640.4(c)).
Who gives it, deal by deal
| Deal | Who gives the notice |
|---|---|
| Retail installment contract, assigned to a lender | The dealer (16 CFR 640.4(b)) |
| Buy-here-pay-here contract you keep | The dealer |
| Direct loan from a bank or credit union | The lender, or the dealer for it (16 CFR 640.4(c)) |
| Cash deal or outside financing | No notice from the dealer |
When to give it
For a car loan or retail installment contract, give the notice before the deal is signed, but not before the approval is communicated to the buyer. Most dealers hand it over with the contract package in the F&I office.
The credit score disclosure exception
Instead of deciding who got worse terms, you can give every applicant a credit score disclosure notice (16 CFR 640.5(e) and 12 CFR 1022.74(e)). Many dealers do, because it removes the judgment call on each deal. The dealer rules recognize that the buyer may get a score the dealer pulled even if the lender used a different one.
Regulation V's Appendix H has model forms for both notices. Using them is optional, but they are the safest starting point.
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.