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Article: Dealers win an F&I victory against lender; Wachovia exec: Credit terms aren't linked to aftermarket products.(NEWS)(finance and insurance)(Wachovia Dealer Services)
- Article from:
- Automotive News
- Article date:
- August 24, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Donna Harris
Dealers have won a victory in the struggle over aftermarket finance and insurance income.
In an Aug. 4 letter, an executive with Wachovia Dealer Services, the nation's third-largest retail auto lender, made it clear: The sale of Wachovia's GAP, or guaranteed auto protection, plans and extended vehicle service contracts is optional.
That means Wachovia loan officers are not supposed to discriminate against non-Wachovia insurance products, which is welcome news for dealers facing reduced margins because of the credit crunch.
Dealers had complained that some Wachovia bank officials pressured dealerships to sell ...