As a Dealer of Motor Vehicles, you are considered a creditor as defined by the Federal Trade Commission and are required to comply with Red Flags Rule.
If you collect, store or share non-public information from customers such as Social Security numbers, and/or banking information… or if you have customers complete a credit application and/or forms containing non-public information, you or your 3rd party service providers run credit and/or background checks and handle debt collection for your business, you MUST comply with this Federal Law or be subject to significant fines and penalties!
Key “Red Flag” Requirements:
- Designate a Compliance Officer / Program Coordinator
- Perform a Risk Assessment to determine “Red Flags”
- Develop a “written” Identity Theft Prevention Program
- Ensure program contains your Policies and Procedures
- Develop an employee training program & train all employees who handle sensitive information to know how to identity, detect and respond to Red Flags, and if an event occurs, you must have a policy in place to notify affected customers according to policy
- Perform periodic audits
- Obtain Board or Top Executive Approval
- Annual Reports to record compliance
The Constellation Automotive Software Red Flag Compliance Service is an online tool that helps you create and maintain your Identity Theft Prevention Program customized with your red flags.
For as little as $45/month* you can protect your dealership from costly fines
Don't Wait! Compliance is Mandatory!
Call today to secure your Dealership!
1-800-654-4955 Ext. 1
* Limited Time Offer, Call now for special introductory pricing!
Penalties for Violations
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A “known” violation of the rule is a violation of the FTC Act, which provides for a $3,500 civil penalty for each violation. |
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Enforcement actions by the FTC can carry penalties of up to $11,000 per violation, per day. |
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Dealers may also be liable under state unfair and deceptive acts, and practices law, which may include individual and class action claims. |
Our service can be used as a stand-alone Red Flag Compliance program or can fully integrate with all Constellation Automotive Software.
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To Learn more about our Red Flag Compliance Service,
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for Auto Dealerships - Call 1-800-654-4955 ext. 1