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HOT TOPICS
2017
MEMBERSHIP
DIRECTORY
136
FEDERAL RULES TO FOLLOW
IDENTITY THEFT PREVENTION COMPLIANCE
Red Flags Rule
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Dealers must detect, prevent and mitigate identity theft
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Perform Risk Analysis
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Develop Identity Theft Protection Program (ITPP)
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Penalty: up to $16,000 per violation
Address Discrepancy Rule
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Establish policy and procedure to confirm credit applicant’s identity
Safeguards Rule
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Ensure security and confidentiality of customers’personal information
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Implement safeguards program detailing how your dealership will safeguard and dispose of consumer
information
OFAC (Office of Foreign Assets Control) Rule
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Prevents dealers from conducting business with those on SDN (specially designated nationals) and blocked
persons list
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Run OFAC check on every customer
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Penalties: Fines up to $10 Million, civil penalties up to one million dollars per violation, plus imprisonment
up to 30 years
CREDIT COMPLIANCE
Risk Based Pricing Notice
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Required disclosure notice to consumers who receive credit on less favorable terms than the terms received
by a proportion of other credit customers
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Provide Credit Disclosure Exception Notice to ALL consumer credit applicants
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Penalty: settlement civil penalties up to $3,500 per knowing violation
Adverse Action Notice
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Notice required when consumer is refused credit or if credit is offered and refused by consumer at a less
favorable rate than the consumer sought (counter-offer)
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Send notice within 30 days of receiving completed credit application OR within 90 days of making counter-
offer which your consumer rejects