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Building Compliance Confidence

UNDERSTANDING YOUR FULL OBLIGATION FOR F&I COMPLIANCE — AND WHY IT’S NOT OPTIONAL.

Compliance isn’t a one-and-done responsibility—it’s a part of every step of every deal. And treating compliance like an option or an occasional “ought-to-do” can lead to messy audits and steep fines.
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READY TO RETHINK YOUR COMMITMENT TO COMPLIANCE?

REQUEST A DEMO FROM YOUR F&I REPRESENTATIVE

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Think you have compliance
all figured out?

SELECT FROM THE LIST OF MISCONCEPTIONS BELOW AND LEARN MORE ABOUT THE REALITIES BEHIND THESE IMPORTANT ISSUES.

  • Identity fraud is not an issue with my dealership.
    MISCONCEPTION:
    Identity fraud is not an issue with my dealership.
    REALITY:

    Auto loan fraud is widespread and increasing year over year. Fraudsters are in every market, constantly looking to commit identity theft. If your dealership is vulnerable, you can be exposed to this type of theft.

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    Dealertrack Compliance helps verify customer identities with real-time Red Flags and integrated OFAC alerts.

  • I only have to run OFAC on cash deals.
    MISCONCEPTION:
    I only have to run OFAC on cash deals.
    REALITY:

    It’s clear, do not do business with a customer until you are certain that they are not on the SDN List. To help protect yourself further, keep a record of OFAC checks for five years.

    Potential Fines: Criminal $250k + JAIL per each individual violation; Civil $89k per each individual violation*

    Dealertrack Compliance incorporates OFAC checks and Red Flags throughout the deal process to help ensure you're doing business with someone who is legally allowed to purchase from you.
  • Out-of-wallet questions are only required for applicants who have changed their address within the past two years.
    MISCONCEPTION:
    Out-of-wallet questions are only required for applicants who have changed their address within the past two years.
    REALITY:

    If an applicant fails a red flags check, out-of-wallet questions are crucial for validating the identity of the applicant. Failure to identify individuals may lead to fines.

    Dealertrack Compliance helps you take ID verification a step further by generating out-of-wallet questions that require knowledge beyond what a person could discover by looking in a wallet that might or might not belong to them.
  • My lender sends my adverse action notices. I am not responsible.
    MISCONCEPTION:
    My lender sends my adverse action notices. I am not responsible.
    REALITY:

    Adverse action notices are a dealership’s responsibility as a loan originator or an indirect lender. If an applicant is approved for credit but a deal does not go through, you must send the applicant a notice.

    Potential Fines: $46,000 per each individual violation.

    Dealertrack Compliance automatically marks all deals that require an Adverse Action Notice, and they can be mailed on your behalf for an additional fee with our mailing service.
  • The customer didn't purchase from my dealership, so I'm not required to give a Risk Based Pricing notice.
    MISCONCEPTION:
    The customer didn't purchase from my dealership, so I'm not required to give a Risk Based Pricing notice.
    REALITY:

    Dealerships are required to give a customer a Risk-Based Pricing notice every time they look at the customer’s credit bureau and the customer is financing the vehicle, and it the notice must be provided before the contract is signed. Failure to do so can result in a fine.

    Fines: $4,000 per each individual violation.

    Dealertrack Compliance automatically recommends which applicants require a Risk Based Pricing Notice and then stores the notice in the deal jacket for you.
  • It's not possible to track compliance across multiple stores.
    MISCONCEPTION:
    It's not possible to track compliance across multiple stores.
    REALITY:

    As acquisitions create larger dealer groups throughout the industry, it’s essential to create a process to ensure compliance across operations so you can monitor each dealership and user’s performance and watch out for missed actions, and incomplete deals.

    Dealertrack Compliance offers a dashboard with reporting, including enterprise-wide reporting, so you can effectively monitor performance across your entire operation.
  • Our process works. We're prepared for an audit.
    MISCONCEPTION:
    Our process works. We're prepared for an audit.
    REALITY:

    An audit by lenders, the FTC, or other government agencies can occur for any retailer. The key is to be prepared. Storing deal documents digitally is a great way to stay ready for an audit.

    Dealertrack Compliance helps you prepare for an audit by creating a consistent deal process and storing deal documents long-term.
  • Compliance risks aren't a threat to independent dealerships.
    MISCONCEPTION:
    Compliance risks aren't a threat to independent dealerships.
    REALITY:

    Independent dealerships are required by law to follow the same FTC practices as any other auto dealership. They are also subject to the same penalties.

    Dealertrack Compliance helps protect your dealership from fraud and fines, and keeps you prepared for an audit.
  • It's not my role to worry about compliance obligations.
    MISCONCEPTION:
    It's not my role to worry about compliance obligations.
    REALITY:

    If it’s not your role, then ask your dealership whose role it is? Compliance is not a single department’s concern, it’s a series of steps that apply throughout the dealership.

    Dealertrack Compliance has a compliance check at every step of the deal process to help you protect your dealership.
  • I don't need to take extra steps to protect my customers' PII/personal information.
    MISCONCEPTION:
    I don't need to take extra steps to protect my customers' PII/personal information.
    REALITY:

    As a dealership, you must be diligent in limiting certain permissions on certain software tools. An assigned compliance officer can monitor and track user permissions. Creating and following policies to safeguard customer information is a great way to ensure you are creating a consistent process to protect customer information.

    With Dealertrack, your DIO manages user permissions, and all user interactions are stored within the deal jacket. Dealertrack also helps safeguard your data by timing out users after a certain amount of time.
  • If I switch credit bureau providers, my compliance data comes with me.
    MISCONCEPTION:
    If I switch credit bureau providers, my compliance data comes with me.
    REALITY:

    If you have your Compliance solution with your bureau provider and switch bureau providers, your Compliance data does not go with you. This can cause headaches if you ever need that data down the road.

    With Dealertrack as your trusted partner, you'll NEVER lose access to your data, even if you cancel your account.
  • I don't need a compliance policy book because I'm not a creditor.
    MISCONCEPTION:
    I don't need a compliance policy book because I'm not a creditor.
    REALITY:

    Without a defined compliance policy implemented at your dealership, you run the risk of a mishap, ultimately leaving you vulnerable to fraud, fines, audits, and even legal action.

    Dealertrack has been literally writing the book on compliance for the past 17 years. With our integrated solution, Dealertrack Compliance helps protect your dealership.
  • I don't need a compliance officer because each manager is responsible.
    MISCONCEPTION:
    I don't need a compliance officer because each manager is responsible.
    REALITY:

    Yes, each manager must do their part to help protect your dealership, however, a Compliance Officer can be your eyes and ears throughout the dealership to ensure defective processes are caught before they lead to unnecessary costs or penalties.

    With Dealertrack Compliance, your process is integrated with checkpoints to ensure deal compliance from start to finish.
  • If the Final Dealer Participation Rate equals the Standard Dealer Participation Rate, I don't need to complete a dealer participation form.
    MISCONCEPTION:
    If the Final Dealer Participation Rate equals the Standard Dealer Participation Rate, I don't need to complete a dealer participation form.
    REALITY:

    The dealer should always complete the form and include it in the deal jacket for all sales, regardless of whether the Final Dealer Participation Rate equals the Standard Dealer Participation Rate.

    Dealertrack Compliance automatically recommends which applicants require a Dealer Participation Form and then stores the document in the deal jacket for you.
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Quiz: Compliance Dos and Don’ts

DO YOU KNOW WHAT YOUR COMPLIANCE OBLIGATIONS ARE? TAKE OUR QUICK,
10-QUESTION QUIZ TO ASSESS YOUR ABILITY TO STEER CLEAR OF AUDITS AND FINES.

True of False: Your dealership only needs to run OFAC on non-cash deals.

TRUE
FALSE

INCORRECT:

It’s clear, do not do business with a customer until you are certain that they are not on the SDN List. You need to run OFAC on all deals, not just cash. To help protect yourself further, keep a record of OFAC checks for five years. OFAC Violations can cost you: Criminal $250k + JAIL per each individual violation; Civil $89k per each individual violation*

TAKE THE FULL QUIZ

CORRECT:

It’s clear, do not do business with a customer until you are certain that they are not on the SDN List. You need to run OFAC on all deals, not just cash. To help protect yourself further, keep a record of OFAC checks for five years. OFAC Violations can cost you: Criminal $250k + JAIL per each individual violation; Civil $89k per each individual violation*

TAKE THE FULL QUIZ

Secure Deals
From Start to Finish

DEALERTRACK HELPS KEEP DEALS COMPLIANT BY INTEGRATING CHECKPOINTS INTO EVERY STEP OF THE DEAL, FROM CREDIT APPROVALS TO THE FINAL CONTRACT.

SEE HOW
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Increase your awareness, increase your confidence

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