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dow stickers (or in other locations) is clear- verse Action mandates, so I won’t dwell • During interaction
ly marked and accurate. Incorrect or mis- too long on these. Especially because most • While setting policies
leading information can quickly result in dealers already do a pretty good job with • Regarding pricing and offers
customer complaints or even legal issues; these topics (if they didn’t, they’d probably
so, it’s worth taking the extra moment to no longer be operating). If you’re having Clearly mark all vehicles on your lot
verify that facts such as mileage and fea- challenges with OFAC or Red Flag Com- • Accurate Buyers Guide
tures are correctly listed. Additionally, pliance, remember that most DMS’s (deal- • Accurate feature/mileage information
it’s critical that you post an FTC (Federal er management systems), including Frazer,
Trade Commission) Buyer’s Guide on ev- Dealertrack and RouteOne, provide simple Ensure that your dealership is in order
ery vehicle for sale on your lot. Make sure low cost or free solutions—use them! As • Protect customer information
you use the current version of the correct for Adverse Action, that’s easier to deal • Keep a binder (Policies, Training
form (your state independent dealer asso- with on your own. As you know, the law sign-offs, Formal Incident Response
ciation can direct you). Vehicles with no requires that an Adverse Action letter be Plan)
guide should be clearly marked “This ve- mailed to the customer any time a loan is
hicle is not for sale.” declined. The good news is that your lend- Square your deals away
ers do this on your (and their) behalf. But • Obey OFAC and Red Flag mandates
The next area of focus is your dealership did you know that you’re responsible for • Don’t forget your Adverse Action letters
itself. Compliance, here, focuses on safe- sending this letter if you decline a custom-
guarding customers’ non-public informa- er who you haven’t sent through a bank? Having done all of that, just remember not
tion. We’ve all walked into a dealership and Examples include a customer with no job, to get the Compliance gremlin wet or feed
seen deal jackets, credit applications, and with no Social Security number, or in an him after midnight!
even credit reports lying around on desks open bankruptcy. If you’re not comfortable
or deal tables. A customer compromised sending the Adverse Action letter in such a As a post script, Peak Performance Team
as a result of your staff mishandling con- case, it’s best to submit the customer to the will take a moment to do a little common
fidential information can (and will) result lender for rejection and to rely on the lend- sense Compliance of our own and remind
in a major fine and possibly an expensive er to send the letter automatically. Then you that we are not lawyers and that the
lawsuit. As a rule of thumb, any paperwork you know you’re covered. information provided in this article is not
containing customer Social Security num- intended to be legal advice or to replace
bers, dates of birth, addresses, or credit in- And that’s pretty much what Compliance the advice of your council. PPT also rec-
formation must be kept in a secured area is about: covering your dealership to make ommends that you consider taking a full
(such as a locked drawer) at all times. sure that the Compliance gremlin can’t Compliance course, such as the one of-
wiggle his way into your machine! fered by the NIADA. These common-sense
Protecting written information is just one items are simply intended to start you on
side of the coin. It’s just as important to Treat every customer fairly and with the road to full Compliance and help you
protect customers’ electronic data—more equal consideration avoid the Compliance gremlin. n
important, in fact, because an electron-
ic breach doesn’t have to originate on the
premises but can come from anywhere
in the world. Even with the best security, DOWNLOAD THE
breaches of this nature happen all the time
and are sometimes impossible to prevent.
That’s why it’s critical to observe the Safe- MSIADA APP
guard Rule and make sure you have a writ-
ten formal incident response plan. This le-
gally mandated plan details the established
notification and damage mitigation mea-
sures you’ve laid out for your dealership to
be used in the event of such a data breach.
Compliance in this area isn’t as difficult
as it sounds because there are a number of
companies which will provide a plan for
little or no charge (Information is provided
at the end of this article.) OVER $11,000 IN COUPONS!
Search for MSIADA to download. Once downloaded,
As dealer principal, you’ll agree that none scroll to the bottom to find “Membership Rewards”
of these safeguards or plans or mandates and register. Your username cannot be your email
will help you at all if your deals aren’t address and your password must be at least eight
squared away. In fact, you’re probably tired characters with a capital letter and a number. Once you
have registered, admin will get an email to approve.
of hearing about OFAC, Red Flag, and Ad-

MIADA MISSISSIPPI DEALER Q1 2020 | 3