GNYADA March 2018 Newsletter

Keep Women in the Auto Industry 9 Despite the great career opportunities for women in the automotive indus-

Unconscious Bias: Do you ask or expect women to perform tasks below their level, such as taking notes or getting coffee, but not expect men to do the same? Do you give equal time and consideration to men and women in meetings? Check out NADA’s #womeninauto- motive Video Competition , where women currently in the industry are sharing stories about their careers. NADA’s favorite 10 submissions will win an Apple Watch!

Feedback: Does your dealership hold women to a different standard of appearance or attitude? Before criticizing the way a woman acts or dresses, consider if you would criti- cize a man in the same way, for the same thing. Inclusion: Where do your business and social events take place? Are locations universally welcoming to both men and women? For example, even if women are not explicitly excluded, they are unlikely to feel welcome at a work lunch at Hooters.

try, they are currently only about 19% of dealership employees. To ensure your dealership isn't losing skilled women employees, consider how your dealership’s practices in these key areas may be subtly affect- ing women working there: Career Advancement: Are you or any of your managers basing employment decisions upon the assumption that women have family commitments that men are assumed not to have?

New Military Lending Act Interpretation 10

The DoD clarified that motor vehicle finance contracts that also finance costs expressly related to the product, such as a service contract, or negative trade equity, remain exempt.

As previously reported, the Department of Defense (DoD) issued an interpretation of its Military Lending Act (MLA) regulation that triggers duties and restrictions when creditors include Guaranteed Automobile Protection (“GAP”) coverage or other credit-related products in a motor vehicle financing contract with covered borrowers.

New York also has a law prohibiting discrimination against service members in the context of credit decisions so don’t reject a service member’s credit application to avoid dealing with the MLA.

Frequently asked questions about the effect this interpretation may have on New York dealers:

What is MLA and who does it apply to?

The MLA is a 2006 law which restricts the terms of certain consumer loans made to certain military personnel, their spouses, and dependents. These individuals are “covered borrowers”.

What should dealers do now?

Talk to your financing institutions to find out their MLA policies. It is likely that they will report not offering anything that triggers the MLA. Since New York requires GAP be offered in certain circumstances, it is likely the financing company will just tell consumers they are not responsible for the GAP if there is a loss to avoid triggering the statute. The contents of this article are not legal advice but given for informational purposes only. Talk to your dealership attorney about next steps. n n

How do I know if someone is a covered borrower?

As part of the sale, your dealership must check the status of prospective borrowers here .

What if someone is a covered borrower?

Motor vehicle finance contracts that also finance products related to credit, such as GAP or credit insurance, are regulated by the MLA. If a credit-related product is included in a vehicle financing contract with an active- duty service member or family member, the dealer likely cannot take a security interest in the financed vehicle.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • March 2018 7

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