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Quiz:
Test Your Compliance Knowledge
What you don’t know about compliance can cost you – in fines, fraud loss, and hits to your dealership’s reputation.
Take this quick, 5-question quiz to test your awareness of some of the most vital compliance requirements dealerships face.
True or False: Dealerships can ignore the new data privacy and data security laws that states have been enacting.
Thirteen states—California, Colorado, Connecticut, Delaware, Florida, Indiana, Iowa, Montana, Oregon, Tennessee, Texas, Utah, and Virginia—have enacted new data privacy and data security laws that apply to all personally identifiable information collected from consumers. Dealerships should review their process for handling and securely storing this data.
Thirteen states—California, Colorado, Connecticut, Delaware, Florida, Indiana, Iowa, Montana, Oregon, Tennessee, Texas, Utah, and Virginia—have enacted new data privacy and data security laws that apply to all personally identifiable information collected from consumers. Dealerships should review their process for handling and securely storing this data.
True or False: Your dealership only needs to run OFAC on cash deals.
You need to run OFAC on all deals, not just cash. You should not do business with any customer until you are certain 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 $94k per individual violation*
*As of 2024 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
You do need to run OFAC on all deals, not just cash. You should not do business with any customer until you are certain 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 individual violation; Civil $94k per individual violation*
*As of 2024 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
True or False: Your dealership needs to store documents from “dead deals,” even though you didn’t end up financing them at your dealership.
Any time you pull a customer’s credit, you are required by law to keep a record. To stay protected, your dealership needs to store documents for all deals—including dead deals. The duration of storage will depend on the state in which you operate.
Any time you pull a customer’s credit, you are required by law to keep a record. To stay protected, your dealership needs to store documents for all deals—including dead deals. The duration of storage will depend on the state in which you operate.
True or False: You are required by law to store all deal documents for 12 months. After one year, consumers can no longer formally dispute a credit pull authorization or other aspect of a deal.
To protect itself, your dealership needs to store all deal documents for the state-mandated period. The required storage length is dependent on the state(s) in which you operate and the type of deal. When properly stored, those documents can also be your best protection against audits and lawsuits.
To protect itself, your dealership needs to store all deal documents for the state-mandated period. The required storage length is dependent on the state(s) in which you operate and the type of deal. When properly stored, those documents can also be your best protection against audits and lawsuits.
True or False: The Red Flags Rule requires dealerships to implement a written Identity Theft Prevention Program designed to detect the “red flags” of identity theft.
A written Identity Theft Prevention Program (ITPP) is required to detect, prevent, and mitigate identity theft. There are 26 potential red flags that need to be considered in your dealership’s ITPP.
Potential Fine: As high as $4,705 per violation*
*As of 2024 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
A written Identity Theft Prevention Program (ITPP) is required to detect, prevent, and mitigate identity theft. There are 26 potential red flags that need to be considered in your dealership’s ITPP.
Potential Fine: As high as $4,705 per violation*
*As of 2024 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
Ready to feel even more assured when it comes to compliance? Dealertrack Compliance can protect your deals and your dealership through each step of the process.
