The Changing World of Consumer Financing
Be F&I Compliant while Maximizing Profits
Priority One Financial Services, Inc.
742 Second Avenue South
Saint Petersburg, Florida 33701
Phone (800) 747-6223
Federal Financial Regulation Compliance Checklist
Reference the following checklist to identify key areas in which your dealership may be in
violation of federal financial regulations. Dealers are encouraged to consult with a qualified
attorney to certify the individual dealership’s compliance with and application of federal
financial regulations.
q F&I staff are trained regarding specific areas of unlawful discrimination under the ECOA
q Dealership procedures are in place to prevent unlawful discrimination by F&I staff
q F&I staff are trained regarding questions they MAY and may NOT ask a customer under the
ECOA
q F&I staff provide every customer with the five material disclosures required under the TILA
q Dealership procedures are in place to ensure proper TILA disclosure
q The appropriate Adverse Action Notice is provided to each customer:
o that is denied credit by your dealership lending sources
o that does not accept credit under the terms offered
o for which your dealership does not submit the credit application to any lender
q Adverse Action Notices contain all of the information required under FCRA
q All applicants are provided either a Risk Based Pricing Notice, or a Credit Score Disclosure
Exception Notice, as required by the January 1, 2011 FACTA enhancements to the FCRA
q The dealership has a written Identity Theft Prevention Program, required by the FCRA Red
Flags Rule
q Dealership staff members are regularly trained on the dealership’s Identity Theft Prevention
Program
q Dealership procedures are in place to ensure that F&I staff members are not tying the sale of
one finance product to another, in violation of the Sherman Antitrust Act
q The dealership has established policies regarding the use of consumers’ private non-public
information, and from these policies has developed a Privacy Notice which is provided to
every customer
q The dealership has a written Information Security Plan, describing the program to protect
`customer information as required by the Gramm-Leach-Bliley Act
q Prior to entering into a sales or finance contract with ANY customer, the Office of Foreign
Assets Control (OFAC) list is reviewed to ensure the customer is not a Specially Designated
National (SDN)
q IRS Form 8300 is completed and submitted to the IRS for any transaction involving any
combination of cash or cash-equivalent instruments totaling $10,000 or more.
Resources
Equal Credit Opportunity Act
Ø http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre15.shtm
Truth in Lending Act (TILA) Regulation Z
Ø http://www.fdic.gov/regulations/laws/rules/6500-1400.html
FACT Act
Ø http://edocket.access.gpo.gov/2010/pdf/E9-30678.pdf
Red Flag Rules
Ø http://www.ftc.gov/bcp/edu/microsites/redflagsrule/index.shtml
Ø http://www.ftc.gov/os/2009/06/090611redflagsfaq.pdf
Sherman Anti Trust Act
Ø http://education.yahoo.com/reference/encyclopedia/entry/FedTC
Gramm-Leach-Bliley Act, Safeguards Rule & Financial Privacy Rule
Ø http://www.ftc.gov/bcp/edu/microsites/idtheft/business/safeguards.html
US Patriot Act OFAC List
Ø http://www.fincen.gov/statutes_regs/patriot/
Form 8300
Ø http://www.irs.gov/businesses/small/article/0,,id=148821,00.html