2020Directory_FNL_FlippingBook

FEDERAL RULES TO FOLLOW

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 Privacy Rules Compliance Model Privacy Notice • Prepare Model Privacy Notice which reflects your policy for sharing non-public personal information – take advantage of the “safe harbor” model notice found at: www.federalreserve.gov/bankinforeg/privacy_notice_ instructions.pdf • Provide Notice to any customer who provides your dealership with non-public personal information • Post your Model Privacy Notice on your website

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185 2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE