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HOT TOPICS
2015 GNYADA Membership Directory
67
COMPLIANCE CHECK LIST
Identity Theft Prevention Compliance:
Red Flags Rule
Dealers must detect, prevent and mitigate identity theft
Perform Risk Analysis
Develop Identity Theft Protection Program (ITPP)
Penalty: up to $16,000 per violation
Address Discrepancy Rule
Establish policy and procedure to confirm credit applicant’s identity
Safeguards Rule
Ensure security and confidentiality of customers’personal information
Implement safeguards program detailing how your dealership will safeguard and dispose of consumer
information
OFAC (Office of Foreign Assets Control) Rule
Prevents dealers from conducting business with those on SDN (specially designated nationals) and
blocked persons list
Run OFAC check on every customer
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
Required disclosure notice to consumers who receive credit on less favorable terms than the terms
received by a proportion of other credit customers
Provide Credit Disclosure Exception Notice to ALL consumer credit applicants
Penalty: settlement civil penalties up to $3,500 per knowing violation
Adverse Action Notice
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)
Send notice within 30 days of receiving completed credit application OR within 90 days of making
counter-offer which your consumer rejects