Disclaimer: This information is not meant as legal advice, and we do not purport to provide any legal or regulatory analysis. Consult with your attorney for any legal, regulatory, or compliance questions you may have. | *Point Predictive 2020 Annual Auto Fraud Report
As more car shoppers start out online and dealerships offer more remote purchase options, compliance can be
increasingly challenging. Follow these best practices to keep track of compliance actions throughout each deal:
1
From privacy notices to every buyer and risk-based pricing notices for credit
applicants, to adverse action notices for consumers with issues obtaining credit, a
compliance solution can help you provide notices at the proper times.
Stay on top of consumer notices
2
Auto loan fraud topped $7.3 billion in 2020.* Protect your dealership and your customers
from fraud and identity theft by running Red Flags and OFAC checks on every deal. Use
out-of-wallet questions as needed to provide additional identity verification.
Ensure ID verification throughout the deal
3
Implement a consistent markup rate–including aftermarket sales–for all customers,
and only permit markdowns for significant, non-discriminatory business reasons.
Adopt practices in line with the Equal Credit Opportunity Act and Fair Lending Policy
4
Prepare scripts, FAQs and presentations that fairly and honestly state what the
product is and how much it will cost. Create and store disclosure records when
customers decline to purchase aftermarket products.
Be consistent in selling aftermarket products in the F&I office
5
Have the customer sign a state-specific eSign disclosure to indicate their consent
to move forward. Use an eSigning solution that creates a time-and date-stamped
audit trail.
Include digital signing in your compliance policies and practices
6
When delivering a vehicle to the customer, re-confirm their identity and be sure to
provide the proper documentation for delivery confirmation. Never negotiate terms
and conditions at the consumer's home.
Know the compliance steps for remote deliveries
7
Keep detailed deal documentation on file for the state-mandated period of time,
stored digitally so it is accessible in case of an audit.
Store and manage records to be ready for audits
8
Assign a compliance officer at your dealership to help ensure your team is
following compliance practices to prevent violations and information breaches.
Monitor your deal and staff compliance
A RE Y OU E X P OSING Y OUR
DE A L E R S HIP T O F INE S ?
$43K
Maximum penalty
per violation of the
Red Flags Rule
*
Fine for failing to
comply with
Adverse Action Notice
requirements
*
$4K
*As of 2021 and subject to alteration depending on the
circumstances of a violation. Please seek legal counsel for
verification and further details.
Best Practices for
Compliance at Every
Stage of the Deal
8
Today's Solutions for Today's
Compliance Challenges
G E T S T A R T E D N O W
MAINTAIN COMPLIANCE ON EVERY DEAL WITH DEALERTRACK COMPLIANCE
$250K
Criminal penalty for
OFAC/SDN violations,
plus jail time
*
