Oplogic will help keep your dealership in compliance with all State and Federal legal requirements while protecting both you and your customers from identity theft. The number of legal requirements that auto dealers must be compliant with is growing rapidly. These range from terrorist watch lists, to privacy issues, state repeat offender checks, do not call registries and financing requirements. You can rest assured knowing that your business is up to date with the ever-changing government regulations.

Government Regulations:

  • USA Patriot Act Compliance
  • Do Not Call Compliance
  • OFAC Compliance
  • Red Flags Rule
  • Risk-Based Pricing

Data stored in compliance with:

    • Privacy Act Compliance
    • Fact Act Compliance
    • Gramm-Leach Bliley Act Compliance
    • FTC Safeguards Rule Compliance

The Oplogic system easily satisfies all of these issues and makes customer handling smoother and more efficient.

Red Flags Rule

The “Identity Theft Red Flags and Notices of Address Discrepancy” is a recent addendum to the FACT Act of 2003, responding to an Executive Order of the President of the United States to reduce Identity Theft throughout lending. All financial organizations are required to comply by January 1st, 2008, including auto dealers. An automotive dealership is considered an agent of the lender and is specifically mentioned by name in the legislation. Furthermore, Identity Theft is very real and can occur at any point in the deal process, as early as the test drive, and at the dealership’s expense. WT’s proven sales process has pioneered identity theft prevention in the auto dealership industry long before it was mandated by federal law, saving dealers thousands of dollars in loss. By properly using the Oplogic platform, you will be compliant with the Red Flags Rule.

Consider these key elements in for Red Flags obligations:

      • A Policy outlining the program and process
      • Train all employees in the sales process
      • Detect Red Flags on all customers
      • Prevent ID Theft on all delivered customers
      • Mitigate the damage to the consumer
      • Oversight of the implemented process
      • Ensure with periodic audits and reporting

Oplogic Solution:

      • Red Flags compliance is included in your sales process, not yet another add-on system
      • Identity Theft prevention before the test drive
      • Onsite training includes Red Flags Rule procedures for your entire sales staff
      • 24/7 Support assists dealers when real-time Red Flags are reported on a prospective customer
      • Solution allows for verification of phone or internet customers, whom must be screened for identity theft before a bureau can be pulled.

Risk-Based Pricing

Under the FACT Act, there was a joint rule-making session between the FTC and the Federal Reserve Board implementing the Risk-Based Pricing Rule, which became effective on January 1, 2011.

In essence, the law will affect any dealer who uses a consumer report in connection with extending credit to an individual on material terms. If the terms offered are less than the most favorable terms available, the dealer must provide the individual with a risk-based pricing notice. The definition of “material terms” is related not only to the APR but to any determination that varies according to the consumer report (such as a down payment).

Oplogic offers the risk-based pricing form at no additional charge. All customers must receive a printed copy. The form is accessible from many convenient areas within the platform, including the “F&I Reports”, the F&I Menu and the customer profile’s “Credit Reports” tab. This will help you reduce your exposure to legal and regulatory risks. Dealers who do not comply with the new Risk-based Pricing Rule are subject to potential fines of up to $16,000 per violation, as well as possible penalties at the state level.

Adverse Action Letter Compliance

If a business takes any type of adverse action as defined by the FCRA that is based at least in part on information contained in a consumer report, Section 615(a) requires the business to notify the consumer.

The notification may be done in writing, orally, or by electronic means. It must include the following:

      • The name, address, and telephone number of the Credit Reporting Agency (including a toll-free telephone number, if it is a nationwide Credit Reporting Agency) that provided the report.
      • A statement that the Credit Reporting Agency did not make the adverse decision and is not able to explain why the decision was made.
      • A statement setting forth the consumer’s right to obtain a free disclosure of the consumer’s file from the Credit Reporting Agency if the consumer makes a request within 60 days.
      • A statement setting forth the consumer’s right to dispute directly with the Credit Reporting Agency the accuracy or completeness of any information provided by the Credit Reporting Agency.

Dealers are quickly finding that they can be sued if a potential customer gets declined for credit they helped apply for. That is, unless an official Adverse Action letter gets mailed to them within 14 days. Let Oplogic remove this liability from your store. Oplogic offers professional, reliable Adverse Action notifications to be sent according to your customer data.

USA Patriot Act-OFAC

USA PATRIOT is an acronym for Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism. This law (now called Public Law # 107-56) was signed into effect by President George W. Bush on October 26, 2001. It is intended to strike at the terrorists and their ability to conduct business within the United States of America. Compliance was required by October 25, 2003. Oplogic’s Kiosk offers instant compliance, with no requirement for integration into your IT infrastructure.

Please Review Additional Information on the Patriot Act

Do Not Call Registry

We ensure that you know which of your customers have registered with the Do Not Call Registry and help you work within the bounds of your “established business relationship.” Do not initiate a telephone call or message to a consumer who has registered his or her phone number on the National Do-Not-Call Registry.

Do-not-call registrations must be honored for a period of 5 years. This applies to phone calls that are made “for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services.” Calls that are placed to conduct surveys, market research or for other non-solicitation reasons can be brought within this definition if they serve as a pretext to an otherwise prohibited advertisement or as a means of establishing a business relationship.


Please Review Additional Information on the Do Not Call Registry

FTC Safeguard Rule

The Federal Trade Commission (FTC) has issued a Safeguard Rule for automotive dealers. It is meant to ensure the security and confidentiality of customer records and information; protect against any anticipated threats or hazards to the security or integrity of such records, and protect against unauthorized access to such records or information that could result in substantial harm or inconvenience to any customer. Following are a select list of suggestions from the Safeguard Rule on how to maintain security throughout the lifecycle of customer information and an explanation of how Oplogic ensures that your dealership complies with these particular Safeguard Rules.

View Additional Information on the FTC Safeguard Rule 

State Repeat Offender

Oplogic provides state-specific queries for license bureau issues. Some states have statutes that restrict the registration of vehicles based on a person’s driving record. The findings on those queries are displayed on the Oplogic license scan.