Each month we highlight compliance and technology issues that could impact your dealership
Military Lending Act
TheMLA Final Rulestates it is the financial institution's responsibility to confirm an applicant's MLA Covered Borrower Status in accordance with the changes made to the Military Lending Act of 2016.
Are you compliant with the new MLA Final Rule?
ProMax has a solution!
ProMax's new solution automatically checks your buyer's MLA Covered Borrower's Status from the Department of Defense's database whenever a Credit Bureau is pulled.
If your customer is covered, you'll see it noted throughout ProMax: on the Customer Workscreen, the Prospect Logs, in the Compliance Review Report, and on the bureau itself. If you desk a deal that's out of compliance, you'll get a popup telling you so.
Don't get caught out of compliance with this rule! Ensure safe harbor and avoid penalties with our foolproof MLA solution.
If you want to know more about how to protect your dealership call your Dealer Support Specialist at 844-322-9034.
Internet ID Fraud Costs
a Midwest Dealer $88K
More and more dealerships are seeing a substantial percentage of their internet sales going to consumers who are out of the state. Out-of-state sales are great, but they can potentially open a dealer up to risks of fraud. The good news is, you already have the tools necessary to protect your dealership.
In June of 2017, a Midwest auto dealership received an email regarding the purchase of one of their most expensive vehicles. The sales manager worked out the deal with the customer, who lived two states away. The dealer used FedEx to send the loan paperwork to the customer, who signed it and sent it back two weeks later. Later, he received the check, paid off the floorplan, and waited for the title. Meanwhile the customer sent a transportation company to pick up the vehicle. When the title arrived, the sales manager sent it by FedEx to the customer, but shortly afterwards received the title with an “unable to deliver” notice. The finance company contacted the sales manager to inform him the customer had never purchased a vehicle from them by mail and wanted their money back.
That whole mess could have been avoided if the dealership had a strong Identity Theft Protection Program (“ITPP”) in place, which is required by the Red Flags rules enacted through the Fair and Accurate Credit Transaction Act. An ITPP helps you identify where your security is weak and develop a plan to fix it. In addition, if they had had our Compliance Package, the sales manager could have used the “Out of Wallet” questions to validate the consumer’s identity before the sale ever got started.
To learn more about our Compliance Package and to get a sample of an ITPP, contact your Dealer Support Specialist at 844-322-9034
In the News
Dealer Fines and How to Avoid Them
Do you like fines? Unless the answer is 'yes', you need to read this article on staying compliant.
Every computer you use ProMax on should have anti-virus and malware software installed. Since every dealership is different, you should figure out what works best for you based on your budget, number of computers, and vendor reputation.
While we don't recommend any specific software, here are a few places you can research further: