: Governs how dealers handle credit information. Note that while they may report negative info like defaults, many BHPH dealers do not report positive payments to credit bureaus.
At the federal level, BHPH lots must comply with standard lending and consumer protection laws: buy here pay here car lot laws
: Regulates how the dealer (as the creditor) can collect on late payments or conduct repossessions. State-Specific Regulations : Governs how dealers handle credit information
: Dealers must provide a written contract that clearly discloses the APR , total finance charge , amount financed , and the total sale price of the vehicle. State-Specific Regulations : Dealers must provide a written
State laws often provide more targeted restrictions on BHPH operations: Putting the Brakes on Buy Here, Pay Here Dealerships
Buy-here-pay-here (BHPH) dealerships are subject to a combination of federal consumer protection acts and specific state-level regulations because they act as both the auto seller and the lender.
: Prohibits dealers from discriminating against applicants based on race, religion, sex, marital status, or age.