The Risk-based Pricing Rule requires dealers who use credit reports to issue a notice to customers who receive credit from them on terms that are less favorable than terms received by most of their other credit customers. Dealers do not need to determine who falls into this category if they simply issue to all their credit applicants a credit score disclosure "exception notice." This notice includes the customer's credit score and other information that puts the score in context.
With the new functionality, any dealership using the DealerTrack credit application network will be able to print credit score exception notices pre-filled with all required information, as well as exception notices on their lender's behalf for two-party financing. In addition, dealerships subscribed to the DealerTrack Compliance Solution will be able to securely and electronically store and view status reports on all exception notices generated by their dealership though the solution's dashboard and audit tools. This premium functionality is especially useful in helping dealers not only maintain compliance within their dealership, but in helping them prove it in the event of an FTC or Attorney General audit.
"We're very pleased to further expand DealerTrack's leading F&I offerings by including risk-based pricing functionality at no additional charge," said Raj Sundaram, senior vice president, Solutions and Services Group at DealerTrack. "These and other enhancements underscore our ongoing commitment to providing dealers with the industry's most comprehensive package of compliance capabilities, thus reducing their exposure to legal and regulatory risks."
Dealers who do not comply with the new Risk-based Pricing Rule are subject to potential fines by the FTC of up to $16,000 per violation, as well as possible penalties at the state level. The FTC is also scheduled to begin enforcement on January 1 of its Red Flags Rule, which requires dealers to take steps to detect and prevent identity theft, and could entail similar penalties for each violation. DealerTrack's Compliance Solution includes tools to help dealers comply with the Red Flags Rule as well.
The DealerTrack Compliance Solution, a critical component of the DealerTrack Performance Suite, enables dealers to work all their deals on one integrated and secure platform. From credit application submission to identity verification, menu presentation, contract processing, tracking and reporting, DealerTrack helps protect a dealer's business by encouraging and simplifying adherence to applicable laws and regulations.
About DealerTrack (www.dealertrack.com)
DealerTrack's intuitive and high-value software solutions enhance efficiency and profitability for all major segments of the retail automotive industry, including dealers, lenders, OEMs, agents and aftermarket providers. Our solution set for dealers is the industry's most comprehensive. DealerTrack operates the industry's largest online credit application network, connecting approximately 17,000 dealers with over 900 lenders. Our Dealer Management System (DMS) provides dealers with easy-to-use tools and real-time data access that will streamline any automotive business. Dealers using DealerTrack AAX get the inventory management tools and services needed to accelerate turns and increase profits. Our Sales and F&I solution enables dealers to streamline the entire sales process while structuring all types of deals from a single integrated platform. DealerTrack's Compliance Solution helps dealers meet legal and regulatory requirements and protect their hard-earned assets. DealerTrack's family of companies also includes data and consulting services providers ALG and Chrome Systems. For more information, visit www.dealertrack.com.