2015 GNYADA MEMBERSHIP DIRECTORY

COMPLIANCE CHECK LIST

Identity Theft Prevention Compliance: Red Flags Rule

HOT TOPICS 2015 GNYADA Membership Directory 67 Safeguards 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

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