Automotive Dealership Compliance: Disaster Scenario
The commotion inside your service department transmits a shockwave during your dealership, and also you, the dealership, arrive just over time to witness your service techs being handcuffed over the hood of the vehicle set for service.
Your tech continues to be charged with stealing the bank account number from your old checkbook register inside a service customer’s glove compartment, after which draining the client’s account.
What are the limitations of the automotive dealer’s liability from your rogue worker? Compliance certainly can’t matter since your DMS representative as well as your garage liability carrier have assured you by using their unique compliance solutions, you’re totally compliant.
However, the victim’s attorney, what the law states firm of Dewey, Cheatum & Howe, later demands a duplicate of the dealership’s Gramm-Leach-Bliley Safeguards Rule Policy and documentation of total staff training (have your merchandise people been trained?) as needed by federal rules. You speak to your reliable DMS and garage liability representatives for his or her assistance to furnish the documents, simply to uncover you will find none! Once they assured you that you simply were compliant, as it happens they meant you had been only compliant with scans for that Warning Flags Rule, OFAC and don’t Call, or quite simply, merely a small part of needed automotive dealership compliance.
Even though the Safeguards Rule doesn’t offer id theft victims to directly recover losses and damages, be assured the victim’s attorney with make use of your “willful non-compliance” to pressure an enormous settlement, or utilize it because the highlight of the opening statement towards the jury in litigation against you… and you are aware how juries really adore vehicle dealers. And want we mention the opportunity of class actions with a few rules?
However it only will get worse. The feds are investigating and therefore are searching for which they term, “an environment of compliance”, and in addition they demand to determine exactly the same documentation of compliance performance as requested through the victim’s counsel. So what exactly is your liability with the us government? The fine is $11,000 each day, retroactive from May 23, 2003!!! Quite simply, many millions when they so choose.
Oh, as well as in situation you did not know, there’s no such factor as “fine insurance” supplied by your garage liability carrier they’ll fully handle your case, but you are by yourself with regards to having to pay the fines and penalties.