Credit Compliance Solutions

The "Red Flags Rule" was created by the Federal Trade Commission (FTC) for creditors and financial institutions to ensure they have and maintain an Identity Theft Prevention Program ("ITPP").

Although Red Flags Compliance is essential for staying in compliance, it can be challenging amidst the daily activities of running a business. Which is why CBC is the industry leader in helping our subscribers stay in compliance with our efficient and easy to use tools to detect, prevent, and mitigate identity theft, using consistent, safe, and practical business practices.

A lender must notify consumers when they have used information from a consumer's credit report to offer them credit with less favorable terms than the best terms available to other similar customers.

A Risk-Based Pricing/Score Disclosure notice must be provided to all applicants when a hard pull credit report is requested. The notice must be provided to the consumer as soon as practical after the credit report is pulled but prior to finalizing the transaction. This applies regardless if an offer of credit is issued or if a score is returned or not. Meaning cash buyers are still required to receive a notice if a credit report was pulled. It also applies to web-based electronic credit applicants if a credit report is pulled. Best practice is to hand the notice to the applicant at the time the bureau is pulled. In the event the applicant does not visit the dealership, the notice should be mailed immediately.

If credit is not extended to the consumer, an Adverse Action letter must be produced within 30 days of the date the credit report is obtained. Notices are to be delivered in person, or by regular mail. Note that a customer accepting a counteroffer of credit, no matter how unfavorable, negates "adverse action" under the ECOA definition. If that doesn't happen, either because no lender approved the customer or the customer refused all credit offered, you have an adverse action situation.

CBC can ease the burden when it comes to your Adverse Action Notice fulfillment obligations. CBC customers save time and energy every month, by allowing CBC to send adverse action letters to the appropriate customers, on your dealership's behalf, to satisfy your compliance requirements.

The Military Lending Act was passed by congress in 2006 to provide specific protections for active-duty service members as well as their spouses and children when it comes to consumer credit transactions. On July 2015, the Department of Defense published a final rule to amend its regulation implementing the Military Lending Act which became effective on October 1, 2015.

To be covered in the Military Lending Act, a borrower must be serving on active duty in the military, or that individual's spouse or dependents. CBC is proud to work with customers who are committed to being in compliance with the MLA, and offers a variety of resources to help.

The range of state and federal regulations with which auto dealers must comply is overwhelming. Each paper document used in the auto dealership presents a security risk. Compliance documents can consume reams of paper. Printing, scanning, shredding, filing and storing is costly and resource intensive.

Today's businesses need to make sure that their document management strategies are in order. Depending on the document type, the amount of time you need to retain certain documents may vary. The best practice is to have an electronic document repository program in place. CBC provides an electronic storage program of all credit-related and other compliance documents. Credit applications are stored for a minimum of seven years along with and the generation of Safe-harbor Privacy Notices, Risk-Based Pricing notices, Adverse Action letters, and other essential compliance documents.

Depending on the type of consumer consent obtained, most documents can be stored electronically, eliminating the need to retain a paper version. CBC's eCredit Online and eQuailify Online web-based applications consumer consent are automatically stored in CBC's proprietary eVault making the process automatic.

Fraud comes in many different forms, from personal identity theft to thieves developing a new person on paper. These created paper people are called synthetic identities. Synthetic ID's are created using different parts of real ID's such as, one person's SSN, another's name, someone else's address, and the list goes on.

CBC proudly stands at the forefront of dealership Red Flags detection and various other identity protection tools with detection built into CBC's proprietary Red Flags Compliance. Synthetic fraud detection by CBC makes it easy to detect potential fraud by delivering Red Flags, synthetic fraud results, and OFAC name search results at the top of the dealer run credit report. This proprietary process makes the daunting task of dealership due diligence easier than any other solution available.

CBC protects its customers by matching the persistence of fraudsters when it comes to developing sophisticated security measures. Just as criminals continue to evolve, so does the CBC team in order to safeguard our customers.

If vigilance is essential to your business's safety, then responsiveness is critical. With CBC's Red Flags Review Dashboard, you get both. Whether a red flag is raised or there is an OFAC alert, an email is instantly sent out to responsible dealership personnel with a request that action be taken and corrected.

Managers get busy and Red Flags get overlooked or mishandled, this simple fact of life greatly increases the possibility of processing a deal with open Red Flags that were either missed, cleared incorrectly or didn't follow established business policy.

Improper clearing of Red Flags or short-cutting the Red Flags compliance process can cost your business tens of thousands of dollars a year. Combined with the ability to make changes in real time, the Red Flags Review Dashboard is here to help improve your ability to detect and respond to compliance issues quickly and without missing any critical details. Which is why CBC poured nearly two decades of experience into eliminating this risk to your business through the development of the Red Flags Review Dashboard.

The Multi-rooftop Compliance Dashboard is integrated with Credit Bureau Connection's eCredit Complete credit reporting and compliance software solution. Your dealership's compliance officer and/or management team can configure, control, and monitor your dealership's compliance policy and business rules with this powerful tool.

The Compliance Dashboard for multi-rooftop dealer groups provides authorized compliance personnel a visual summary of each location either by individual rooftop or via a side-by-side graphical comparison. Authorized users can access the Compliance Dashboard with a single mouse click and instantly view all locations at one time in a quick, easy to read, graphical format. Additional detail information is available by simply mousing over a color coded bar and/or clicking a link to drill into specifics on any particular rooftop or applicant.