Red Flags Rule

In this course, we will discuss the “Red Flags Rule,” which was implemented by Section 114 & 315 of the FACT Act (Fair and Accurate Credit Transactions Act) to aid in protecting unsuspecting Consumers against wrongful and/or illegal usage of their credit information.

We will cover the “Four Basic Elements” incorporated within the Federal Statute of the Red Flags Rule, as well as the listed 26 examples outlined by the Red Flags Rule.

We will review why the Red Flags Rule is an area of concern for every Dealership that works with providing, and/or assisting with securing, credit for its Consumers.

These Rules DO NOT apply ONLY to the F&I Manager/Director. They apply to ALL Employees that handle, or comes into contact with, a Consumer’s NPI (Non-public Personal Information), especially as it relates to a Consumer’s credit and/or other related information This includes:

We will discuss the fact that any contact whatsoever, with a Consumer’s credit information, provides intense scrutiny under The Red Flags Rule.

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