Test Your Knowledge of Red Flags Law

 True or False?

Q: True or False:
Red Flags Rules require the use of automated solutions.
A: False. 
The final Red Flags Rules do not require the use of any specific technology, systems, processes, or methodology. Financial institutions and creditors may use automated solutions if they effectively detect red flags in connection with account openings and existing covered accounts, but are not required to do so.

Industry News

Treasury Announces Additional Tax Deductions for New Auto Purchases 

The Treasury Department announced that a tax deduction for the purchase of new motor vehicles is now available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase. Read more here.

 SBA Floorplan Financing For Car Dealers To Run Through September 30

The Small Business Administration (SBA) now offers government guaranteed loans to finance inventory for eligible auto dealerships under a new program, Dealer Floor Plan (DFP) financing, which became available on July 1. The pilot program will be available through Sept. 30, 2010, at which time the SBA will make the determination of whether or not to extend the program. Read More:

 Dealer Code For Keyless Entry Leads To Vehicle Break-Ins In Salina Kansas

According to a report in the Salina Journal, an area dealership had been using the same dealer entry code for years. Unfortunately, criminals discovered this and have been able to use the dealer entry code to gain access to vehicles sold by the dealership.
Unless the dealer code is cleared from the system at the time of delivery, that code remains operational. If the vehicles sold by your dealership employ a keyless entry code system, you should review your policies and actual practices relating to clearing the dealer code when the unit is sold.

 U.S. Lawmakers Offer Bill to Spur Natural Gas Vehicles

Last Month, U.S. lawmakers unveiled legislation aimed at helping the nation wean itself off foreign oil by providing financial incentives for the use of vehicles fueled by natural gas. The bill would extend tax credits for 10 years in purchasing vehicles that run on natural gas and installing natural gas refueling stations.  Read More:

 Ford Gets $5.9 Billion to Develop Fuel-Efficient Vehicles

Ford Motor Co. will receive $5.9 billion in federal low-interest loans from the Energy Department to improve the fuel efficiency of its lineup and develop alternative power vehicles. The loans to Ford will help the company upgrade factories in five Midwest states to produce 13 fuel-efficient vehicles. Read more