Compliance Blog

Helping Your Dealership Navigate Federal and State Laws and Regulatory Mandates

November 2011

Compliance Definition: "Synthetic Identity Theft"

November 01, 2011 | No Comments | share on facebook | retweet | share on LinkedIn

by DealerTrack, Inc.

Identity theft in which the criminal creates a fake identity using real personal data elements of different people to do so. For example, a synthetic identity theft may use a valid Social Security number with a different name, date of birth or address to establish credit. A 2010 study found that at least 20 million people unknowingly share their Social Security number with a synthetic identity thief. 88% of new identity theft is believed to be synthetic identity theft and it is frequently how illegal immigrants establish an identity in the U.S. See Traditional Identity Theft.

Posted in Privacy/Security/ID Theft | No Comments

Compliance Definition - Consumer Financial Protection Bureau ("CFPB")

November 10, 2011 | No Comments | share on facebook | retweet | share on LinkedIn

by DealerTrack, Inc

An independent federal agency established by the Dodd-Frank Act to enforce consumer protection regulations and issue new regulations prohibiting unfair, deceptive, or abusive acts and practices, among other things. Auto dealers that sell, lease and also service vehicles and do not obtain customer financing from Affiliates are generally not subject to the CFPB’s direct regulatory authority. Buy-here-pay-here and many independent dealers will be subject to direct CFPB regulation. However all auto dealers will be required to comply with substantive consumer protection regulations issued by the CFPB.  On July 21, 2011, rulemaking authority under approximately 18 federal consumer credit laws (including TILA, ECOA, FCRA and FDCPA) were transferred to the CFPB. The CFPB will have authority to amend existing regulations under these laws and publish new regulations concerning consumer financial services.

Posted in Credit Apps/Contracts | No Comments

The Costs of Non-Compliance

November 21, 2011 | No Comments | share on facebook | retweet | share on LinkedIn

by Randy Henrick

DealerTrack Compliance Counsel Randy Henrick explains why the costs of non-compliance exceed the cost of compliance by a 3 to 1 margin.

Posted in Privacy/Security/ID Theft | No Comments