Until now, the laws on adverse action have been inconsistent and difficult to understand. The source of the problems was overlapping laws, regulations, and legal and regulatory decisions. Recently, the National Auto Dealer Association (NADA), Association of Finance Insurance Professionals (AFIP), Zurich Insurance Companies and 700Credit have all published findings which strongly urge dealers to begin sending adverse action notices, or face the consequences.

Our legal and compliance department has developed a comprehensive solution to adverse action which follows industry best practice (and the best liability protection) to keep dealers in compliance with federal and state laws and regulations. Unique to 700Credit, we use deal information from the dealers' DMS with information from our credit system to search for potential adverse action events. We print and send notices automatically for our dealers within 30 days of the original application. Each notice is warehoused in our system for 5 years for record keeping, to be retrieved in the event compliance with the above-provisions is audited.

Dealers are required by law to screen all customer transactions - credit and cash - against OFAC's list of known or suspected drug traffickers, money launderers, and terrorists.

Not only will mandatory OFAC screening help protect you and your dealership from potentially unlawful customers, it will also help protect you from both criminal penalties and civil fines. As a part of the U.S. Patriot Act, non-compliant dealerships can be fined as much as $50,000, and principals can even face imprisonment for up to 10 years. The OFAC list contains thousands of names and is updated on a regular basis.

The California Car Buyer's "Bill of Rights" (Vehicle Code section 11713.20) became effective July 1, 2006. Non-compliance with the law may be punishable as a misdemeanor.

The law requires that a specific notice be provided to each consumer prior to the sale or lease of a vehicle. 700Credit has developed a solution for you to meet your notice obligations under the new law. As a value added service to our clients, you will be able to warehouse the notices in our system for record keeping, to be retrieved in the event that your compliance with the disclosure law is audited.

Buyer Authentication is a service where the system auto generates questions and answers that will test the true identity of an individual. These questions will help validate a customer by asking 'out of wallet' questions that only the applicant would know.

Examples of questions would be: What kind of car do you drive? What color? Who is your mortgage with? What is your approximate monthly amount? What counties have you lived in? Then, based on the applicant's answers, the system generates a score which rates the likelihood that the applicant is who they say they are. These questions can be asked in a call center environment, or through an online interface that the applicant could answer directly. Such questions can also be of use when validating an existing customer prior to releasing critical account information.