5 lessons to learn from software vendor data breach

According to a June 12 settlement announced by the Federal Trade Commission, back in 2015 an employee of Iowa-based LightYear Dealer Technologies, the parent company of DealerBuilt, plugged a storage device into the company’s backup network to increase storage capacity. However, the employee failed to ensure that the device was securely configured, thereby providing an […]
  • Drew Patty
  • August 9, 2019
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Compliance considerations when buying and selling customer leads

As an auto lender, you’re likely aware of the due diligence required when purchasing consumer leads. Lenders must exercise the same diligence when referring — or selling — declined leads downstream. Purchasing customer leads via referral programs has adapted as technology has allowed online lenders to communicate instantaneously with potential customers. Due to the nature […]
  • Dustin Alonzo
  • July 19, 2019
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How lenders can maximize loan deferral and extension compliance

In February, the Federal Reserve Bank of New York issued its Quarterly Report on Household Credit and Debt, which showed a record seven million Americans were 90 days past due on their auto loan payments at the end of 2018. “That is more than a million more troubled borrowers than there had been at the […]
  • Adair Kingsmill
  • June 25, 2019
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Disparate Impact (Still) a Fair Lending Risk

Since the Consumer Financial Protection Bureau’s 2013 indirect automobile guidance was repealed last year, there have been no new public indirect automobile fair lending cases alleging disparate impact. However, fair lending risk still exists. The Equal Credit Opportunity Act and Regulation B remain. So, too, does the CFPB’s 2012 fair lending guidance endorsing disparate impact. […]
  • Brian Fink
  • April 8, 2019
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FTC Proposes Amendments to Safeguards and Privacy Rules

Last week, the Federal Trade Commission issued proposed amendments to its Safeguards Rule and Privacy Rule, both promulgated under the Gramm-Leach-Bliley Act (GLBA). The Safeguards Rule, which originally went into effect in 2003, requires that financial institutions develop, implement, and maintain a comprehensive information security program. The Privacy Rule, which originally went into effect in […]
  • Peter Cockrell
  • March 14, 2019
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FTC Conducts First Compliance Sweep Since Amendment to Used Car Rule

The Federal Trade Commission (FTC) announced in mid-July that it conducted the first compliance sweep of car dealerships since the effective date of its revised Used Car Rule requiring the use of a new Buyer’s Guide sticker. The sweep occurred between April and June 2018 in 20 cities nationwide. The FTC partnered with 12 agencies […]
  • Chad Fuller
  • September 7, 2018
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FTC’s Top 10 Tips for Stronger Data Security Practices

Establishing a reliable online presence for businesses is critical in today’s digital-savvy world, and when it comes to lenders building trust in the online marketplace — it remains a challenging yet crucial component. Data breaches do not necessarily show that a company failed to have reasonable security measures, as there is no such thing as […]
  • Nicole Casperson
  • May 23, 2018
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FTC Lists ‘Seven Deadly Sins’ of Dealership Advertising

The Federal Trade Commission recently listed “seven deadly sins” of dealership advertising, marketing and sales practices, with six out of seven involving finance, such as pricing, F&I products, or financing disclosures, with No. 7 being violating prior orders in the same matters — an example of which just recently occurred. Cindy Liebes, director of the […]
  • Jim Henry
  • September 23, 2015
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Five Steps For Setting Up Your Information Security Program

The Consumer Financial Protection Bureau and the Federal Trade Commission will be knocking at the doors of powersports dealerships and finance providers, to make sure F&I operations comply with federal regulations, such as measures aimed at preventing identity theft, experts said. “We begin to see audits happen in powersports market extensively,” said Paul Sheldon, regional […]
  • Diana Asatryan
  • August 21, 2015
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