IF YOU OFFER CREDIT…..GET RED FLAG CERTIFIED
To help ensure your dealership gets and stays in compliance, Zurich insurance recommends the following seven steps:
1. Put the program in writing
Your program must contain reasonable policies and procedures to address four primary responsibilities under the rule. The rule also states that each program must be documented in writing. While potentially burdensome, this requirement has obvious advantages to the dealer. It forms the basis for the employee training that is required by the rule, and makes responding to government audits and inquiries possible.
2. Make a list of patterns, practices or specific activities that could be red flags signaling possible identity theft.
Your policies and procedures should require that you become at least reasonably certain of your customer’s buyer’s identity. A supplement to the rule on the FTC’s website provides illustrations of 26 possible red flags that fall into the following five categories:
—Receiving alerts, notifications or warnings from a consumer-reporting agency
—The customer presents suspicious documents.
—The customer presents suspicious personal identifying information, such as a suspect address.
—Dealership staff notices unusual use of or suspicious activity within an existing account.
—You receive notices from customers, victims of identity theft, law enforcement authorities or other businesses about possible identity theft in connection with an existing account.
Note, not all 26 possible red flags will be relevant to the way your dealership does business.
In particular, unless you have accounts to which customers can make charges after origination, for example, house credit accounts, the seven possible red flags in category four are not likely to apply to your dealership.
You also need to guard against identity theft risks that result from employee access to account information. Employee access should already be limited as part of your overall information security program.
3. Make a list of methods used to detect and evaluate if a red flag has occurred.
The program should describe procedures used to verify customer information and detect when information is incorrect. Some procedures include:
—Specifying acceptable forms of identifying information required of each finance customer
—Specifying procedures to verify identifying information, for example, using third-party resources to confirm identification or detect fraud
—Using a system to monitor employee compliance relative to their access and use of customer account information
4. Describe how your dealership will respond when red flags are detected.
The program must contain reasonable policies for responding to red flags detected during a transaction. This should include a procedure for escalating unresolved situations to senior management.
Some appropriate responses to unresolved red flags would be to:
—Not continue the transaction
—Use additional resources to verify the customer’s identity.
—Notify law enforcement.
—Determine that no response is warranted.
5. Document all red flag responses and keep them in the customer file.
All red flag responses should also be kept in a dealership file to be used to maintain and update the program.
6. Detail a plan to update the program periodically.
Update the program to reflect changes in risks to customers or to your dealership’s safety and security based upon:
—Your experience with identity theft
—New methods of identity theft
—New methods of identity theft prevention and detection
—Changes in the types of accounts offered or maintained by your dealership
—Changes in your dealership’s business or structure such as mergers and changes in service provider arrangements
7. Follow the Red Flags Rule guidelines in managing the program.
The rule provides for some specific administrative actions that need to take place to adequately manage your program. These include that your program must:
—Be approved and implemented by your dealership’s board of directors or, if no board exists, a designated member of the senior management team.
—Be periodically evaluated to determine if updates are necessary.
—Include training for relevant staff on their obligations under the program.
—Be able to ensure service providers have reasonable procedures to detect, prevent and mitigate the risk of identity theft.
Penalties for Violations
Penalties for violations of these regulations are stiff. These include the following:
—A “knowing” violation of the rule is a violation of the FTC Act, which provides for a $3,500 civil penalty for each violation.
—Enforcement actions by the FTC can carry penalties of up to $11,000 per violation, per day.
—Dealers may also be liable under state unfair and deceptive acts, and practices law, which may include individual and class action claims.
Additional resources from the FTC can be found here.
WE TEACH CAR DEALER EDUCATION
HERE ARE THE 3 MOST IMPORTANT ITEMS ON OUR
ZONING, FINGERPRINTS, BOND
The Dmv Zoning approval is required of each car dealer license location
Dmv Zoning approval is done at the local level ( planning department )
Dmv requires completion of a specific form
Dmv OL902 Zoning form: http://dmv.ca.gov/forms/ol/ol902.htm
The car dealer license process requires LiveScan Fingerprints
LiveScan Fingerprints are dispatched electronically
Dmv requires LiveScan clearance to issue a temporary car dealer license ( 30-45 days )
Dmv 8016 LiveScan form: http://dmv.ca.gov/forms/ol/dmv8016.pdf
Each car dealer application must submit a car dealer bond
10k bond for wholesale, 24 cars or less per year
50k bond for all retail, autobroker or wholesale above 24 cars per year
Car Dealer Bond Quote: EZDealerBond.com
Call our bond agent mike for additional help: 714-797-5780
WE MAKE IT SIMPLE FOR YOU
TO GET LICENSED
#1 DMV CERTIFIED CAR DEALER SCHOOL
some people want the milk
before they pay for the cow
WE GET IT
we are the leaders in
dmv certified car dealer education
in response to high demand
we are now offering a spanish language car dealer class
in modesto at crows landing for those who prefer a spanish teacher
we offer a downloadable spanish handbook after the class
you may call the instructor direct
||This article uses first-person (“I”; “we”) or second-person (“you”) inappropriately. Please rewrite it to use a more formal, encyclopedic tone. (September 2011)|
The Red Flags Rule was created by the Federal Trade Commission (FTC), along with other government agencies such as the National Credit Union Administration (NCUA), to help preventidentity theft. The rule was passed in January 2008, and was to be in place by November 1, 2008. But due to push-backs by opposition, the FTC has delayed enforcement (five times); the current deadline is December 31, 2010.[dated info]
The Red Flags Rule was based on section 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003. FACTA was put in place to help Identity Theft Prevention and Credit History Restoration, Improvements in Use of and Consumer Access to Credit Information, Enhancing the Accuracy of Consumer Report Information, Limiting the Use and Sharing of Medical Information in the Financial System, Financial Literacy and Education Improvement, Protecting Employee Misconduct Investigations, and Relation to State Laws.
There are two different groups that this rule applies to: Financial Institutions and Creditors. Financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a “transaction account” belonging to a consumer. FACTA’s definition of “creditor” applies to any entity that regularly extends or renews credit – or arranges for others to do so – and includes all entities that regularly permit deferred payments for goods or services 
Just because you don’t think you are a creditor, does not mean that the rule doesn’t apply. For example, law firms and accounting firms that receive payment after a service is completed are considered creditors. Another example is if you are a utility company. You provide the utilities and receive payment for your services rendered at the end of the month, rendering you a creditor.
There are many different companies that this rule applies to: this list includes, but is not limited to finance companies, automobile dealers, mortgage brokers, utility companies, telecommunications companies, medical practices, hospitals, and law firms; or any other company that performs a service, then receives payment once the work is complete.
The Red Flags Rule sets out how certain businesses and organizations must develop, implement, and administer their Identity Theft Prevention Programs. Your Program must include four basic elements, which together create a framework to address the threat of identity theft.
The four basic elements to the program are:
1) Identify Relevant Red Flags
2) Detect Red Flags
3) Prevent and Mitigate Identity Theft
4) Update your Program
The Red Flags Rules provide all financial institutions and creditors the opportunity to design and implement a program that is appropriate to their size and complexity, as well as the nature of their operations.
The red flags fall into five categories:
The FTC has a created a template for your business that can be populated to meet your companies needs. The template can be found on the FTC website. This template however is for small, very low risk businesses. There are also a number of other companies that will create a Program for your business to follow for a fee.
As the Red Flag rule widely defines creditors, many businesses (such as utilities) }are not required to collect personal information (such as SSN and Driver’s License Numbers) that they do not need and have no use for. This policy is precisely contrary to the FTC’s advice to consumers that they should disclose their social security number to others only when absolutely necessary. This aspect of the Red Flag rule has the unintended consequences of increasing the number of business that hold consumers’ Social Security numbers thereby putting consumers at greater risk for identity theft through data theft.
Some car dealer attorneys defend the dealer
Some car dealer attorneys defend the buyer
Selecting a good attorney is important
Car Dealer Attorneys for sellers
Car Dealer Attorneys for the buyer
get licensed in 30 days
get licensed in 30 days
Dealing with a DMV investigator when discussing your DMV Vehicle Dealer or DMV Salesperson’s license is simple:
“Please inform me in writing what documentation you require and I will have a copy faxed or mailed to you in the next 24 hours. In the meantime, I have a business to run that requires my attention. As soon as I have the written request for the documents, I intend to fully comply with your request pursuant to the law. Thank you for your time.”
It’s that simple. The DMV Investigator is still bound by the law against warrantless search and seizures, and other goodies that prevent the harassment most dealers deal with on a daily basis.
Don’t take any crap from a DMV Investigator – let him know you’re running a business. You don’t have to bend to his whim. Stand your ground.
We are approved by the California DMV
to teach car dealer education
We have created a complete starter kit of dealer forms.
$55. with free shipping
Click here to order your dealer forms kit now:
We include retail car dealer sales forms from Reynolds & Reynolds
sales contract in english & spanish
buyers guide in english & spanish
car buyers bill of rights option form in english & spanish
car buyers insurance form
car dealer not for sale sticker
We include dmv licensing & registration forms
dmv complaint form
dmv records inquiry form
dmv salesperson application
dmv salesperson handbook
used car dealer & autobroker application checklist
property use verification form
postal service verification form
statement of lost plates form
dmv director as agent of service form
auto broker log
dealer modification form
dealer title correction form
dealer delivery form
dmv car dealer bond form
dmv non-operation form’
dmv error statement form
dmv dealer transmittal form
dmv traffic accident report form
dmv permanent trailer identification application
dmv statement of facts form
dmv gross vehicle weight declaration form
dmv license fee refund request form
dmv replacement license plate form
dmv disabled placard request form
dmv vehicle verification form
dmv title application form
dmv duplicate title request form
dmv change of address form
dmv transfer form
dmv release of liability form
We include custom gotplates.com dealer education forms
gotplates auto broker agreement
gotplates car buying service agreement
gotplates auto broker delivery request form
gotplates spanish copy disclosure form
gotplates dmv dealer transmittal form
gotplates certified red flags rule checklist
gotplates red flag examination checklist
gotplates red flag resolution checklist
gotplates red flag training report form
gotplates board of equalization dealer plate personal use reporting form
We also include a Reynolds & Reynolds catalog
Our dealer education course is required to become a car dealer in California
HOW TO BECOME A CAR DEALER
classes start at $ 100. with prepayment and
completion of an on line tutorial
( unique in the dealer education industry )
the best car dealer class
at the lowest price in california
we now teach in 39 cities of California
no one teaches more dealer education classes
call Charlotte for a car dealer class today
do you want to learn from a qualified team of professionals ???
we are beginning year 17 in april
no one does it better in los angeles
we make it easy for you
saturdays at noon in west la
becoming a car dealer
is an easy ticket
with our scripted training
just follow our lead
invest in yourself
acquire at wholesale pricing
eliminate sales taxes
pay no more reg fees
run with dealer plates
on one insurance policy
find out why becoming a dealer is SO profitable
dmv requires a training class to take your car dealer license examination
dmv requires you pass a 40 question exam to submit your car dealer license application
we teach the required dmv license certification class in more places than anyone else
find out why our competition struggles to match our offer
could it be better value??
could it be better pricing??
could it be our dedication to customer service??
we like to think it is all three
visit our website to see our entire class schedule
joseph is our car dealer license instructor on the central coast
we have a classes in aptos, salinas, san luis obisbo and santa barbara every month
good luck with getting your car dealer license
when we started our car dealer education classes in 1998
there were 3 teachers in the whole state
kevin kellerman was the industry leader
charging $ 200. per person
during this 16 years
the training has gotten more complex
kevin has cried UNCLE and retired
and we have created the best
car dealer class
the lowest possible price
is all it takes
to get the information to get licensed
invest $ 100 in your future
and get licensed within 30 days
the leader in car dealer education classes