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Wall Street reform hurts consumers, dealers, economic recovery

November 10, 2010

By Ray Scarpelli Sr., Chicago Metro NADA Director

WASHINGTON – More than 100 new-car dealers were in Washington in late April to take an important message directly to their senators: Over-regulating auto dealers and imposing new fees and other burdens will curb access to credit for middle-class families that need to buy a car or truck to get to work. It also will slow the economic recovery.

The Senate this month began debate on the Wall Street reform bill, including an amendment sponsored by Sen. Sam Brownback (R-Kan.) which would preserve the ability of dealers to provide affordable financing for their customers. Proponents of the proposed Bureau of Consumer Financial Protection want to include dealers in the agency’s oversight, which likely would limit or eliminate dealer-assisted financing. "We are up against very powerful forces, with the Obama administration, Department of Defense and consumer groups attempting to give senators the impression that dealer-assisted financing is detrimental to consumers," says David Regan, NADA vice president of legislative affairs.

In other news . . .

The revised June 1, 2010, enforcement date for the FTC Red Flags Rule is rapidly approaching. Dealers should make sure that their required Identity Theft Prevention Programs (ITPPs) incorporate all of their covered accounts; include all relevant Red Flags; contain effective response and detection procedures; address all of the Rule’s other requirements; and are appropriately tailored to their particular operations. NADA University has three resources to help you determine if your dealership is adequately prepared:

• "A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft" ia a 90-page guide from the NADA’s Driven Management Series that explains the two rules, focusing on the Red Flags Rule, and provides detailed information, FAQs and a step-by-step compliance chart. The guide includes a sample ITPP, worksheets, and other materials to assist dealers in developing and maintaining written ITPPs specific to their dealerships. Driven guides are free to NADA and ATD members. After completing your free enrollment in NADA University, go to the Training Center, click on NADA-ATD Resource Toolbox, then the Driven tab. You’ll find the "Red Flags Guide" under "Legal."

• "Red Flags: Stopping Identity Thieves Before They Strike" is an online course that takes an interactive approach to teaching all aspects of the Red Flags Rule, utilizing activities, visual enhancements and testing to reinforce learning. Free in 2010 to NADA and ATD members, the course offers members-only downloads of a sample ITPP, sample compliance report, and two sets of worksheets that dealers can use to accomplish account identification and risk assessment and to identify, detect and respond to Red Flags. After completing your free enrollment in NADA University, go to the Training Center, click on NADA-ATD Learning Hub, then "Legal/Regulatory."

• "A Deeper Dive Into the FTC Red Flags Rule" is a Webinar archived from 2009 that features attorneys from the FTC’s Division of Privacy and Identity Protection, which drafted and enforces the Red Flags Rule, along with NADA Regulatory Affairs Director Paul Metrey. The panel recaps the required elements of the Rule, focusing on implementation considerations for dealers. During a Q&A session, Webinar attendees pose their questions directly to the FTC attorneys. This Webinar archive is available through the NADA U Store for $99 for dealers who do not have a NADAvt subscription.

• A NADAvt subscription costs $199 a month per rooftop with annual new-vehicle volume less than 300 units; or $399 a month for rooftops with volume over 300 units. A NADAvt subscription gives you and all your employees access to all NADA and ATD online courses (20+ by year-end), all NADA and ATD convention workshops, all educational webinars produced—and more. Visit www.NADAUniversity.com for details, or call NADA U Customer Service at (800) 557-6232.

Congress extends COBRA subsidy to May 31

The 2009 stimulus bill included a provision that provided a 65 percent subsidy on COBRA insurance premiums for certain workers who lost their jobs in late 2008 and 2009. This benefit has been extended and, as a result, workers who are involuntarily terminated between Sept. 1, 2008, and May 31, 2010, may be eligible for the subsidy.

NADA-ATD 20 Group offers sample composites online

Now prospective 20 Group members can see for themselves what NADA’s Online Composite and Management Tools can do. Explore a demo composite at www.nada20group.org. Go to the Member Login section, enter username 331153841 and password @81689. Truck dealers enter username 331154949 and password 3241*6.

A new Kia group launched this month; an Infiniti group begins in July; and Audi, Acura and Lexus line groups are forming.

 

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