Compliance Simplified: Navigating DealerCenter's Compliance Features

IN THIS ARTICLE:

1. Why is Compliance Important?
2. Where to Find Compliance Tools in Customer Records
3. Using the ID Verification Items Checklist
4. Understanding and Managing Adverse Action Notices
5. Automating Compliance Processes
6. Additional Resources and Support

Why is Compliance Important?

Upholding compliance is crucial for protecting both your dealership and your customers. Properly verifying identities and following credit regulations is not only about legal compliance but also about safeguarding against identity theft and ensuring a trustworthy customer experience.

Where to Find Compliance Tools in Customer Records

The DealerCenter platform makes it simple to access compliance tools. When you open a customer record, you'll find a compliance section that guides you through the required checks to verify identity and process credit reports in line with current regulations.

Using the ID Verification Items Checklist

The ID Verification Items checklist within DealerCenter is a comprehensive guide for performing manual checks when a customer buys a car or applies for credit. Here’s how to use it:

1. Begin by asking the customer for a copy of their driver's license.
2. Confirm that the name and photo on the license match the person and their credit application details.
3. Cross-check additional information such as the address, Social Security number, and phone number with the credit application.
4. If discrepancies arise, select the appropriate attention area in DealerCenter and add notes, like 'Customer changed last name due to marriage.'
5. Complete the checklist by confirming or flagging each item. Each step you perform is automatically timestamped in the system.

This process not only helps prevent fraud but is invaluable during audits, providing a clear, timestamped record of your due diligence.

Understanding and Managing Adverse Action Notices

When a sale doesn't proceed after a credit check, issuing an Adverse Action Notice is a legal necessity under the ECOA. This notice must be sent within 30 days of the credit application if the sale is not completed, detailing the reasons for credit denial.

Automating Compliance Processes

Manual compliance processes are time-consuming; DealerCenter offers automation options that streamline your workload. Our adverse action service, for instance, will take care of sending out notices, ensuring that you remain compliant without the manual effort.

Additional Resources and Support

For further assistance with the compliance features of DealerCenter or other questions about maintaining dealership compliance, please reach out to our support team. We also provide comprehensive tutorials and additional help resources to guide you.