LAKE SUCCESS, N.Y.,
Dec. 15, 2010 /PRNewswire/ --
DealerTrack, Inc., a subsidiary of DealerTrack Holdings, Inc.
(Nasdaq: TRAK), a leading provider of on-demand software and data
solutions for the U.S. automotive retail industry, today announced
the addition of functionality to the DealerTrack Performance Suite
that will enable dealers to comply with the Federal Trade
Commission's new Risk-based Pricing Rule, which goes into effect on
January 1, 2011. The
enhancements are available automatically for free to all
dealerships on the DealerTrack credit application network.
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The Risk-based Pricing Rule requires dealers who use credit
reports to issue a notice to customers who receive credit from them
on terms that are less favorable than terms received by most of
their other credit customers. Dealers do not need to
determine who falls into this category if they simply issue to all
their credit applicants a credit score disclosure "exception
notice." This notice includes the customer's credit score and
other information that puts the score in context.
With the new functionality, any dealership using the DealerTrack
credit application network will be able to print credit score
exception notices pre-filled with all required information, as well
as exception notices on their lender's behalf for two-party
financing. In addition, dealerships subscribed to the
DealerTrack Compliance Solution will be able to securely and
electronically store and view status reports on all exception
notices generated by their dealership though the solution's
dashboard and audit tools. This premium functionality is
especially useful in helping dealers not only maintain
compliance within their dealership, but in helping them
prove it in the event of an FTC or Attorney General
audit.
"We're very pleased to further expand DealerTrack's leading
F&I offerings by including risk-based pricing functionality at
no additional charge," said Raj Sundaram, senior vice president,
Solutions and Services Group at DealerTrack. "These and other
enhancements underscore our ongoing commitment to providing dealers
with the industry's most comprehensive package of compliance
capabilities, thus reducing their exposure to legal and regulatory
risks."
Dealers who do not comply with the new Risk-based Pricing Rule
are subject to potential fines by the FTC of up to $16,000 per violation, as well as possible
penalties at the state level. The FTC is also scheduled to
begin enforcement on January 1 of its
Red Flags Rule, which requires dealers to take steps to detect and
prevent identity theft, and could entail similar penalties for each
violation. DealerTrack's Compliance Solution includes tools
to help dealers comply with the Red Flags Rule as well.
The DealerTrack Compliance Solution, a critical component of the
DealerTrack Performance Suite, enables dealers to work all their
deals on one integrated and secure platform. From credit
application submission to identity verification, menu presentation,
contract processing, tracking and reporting, DealerTrack helps
protect a dealer's business by encouraging and simplifying
adherence to applicable laws and regulations.
About DealerTrack (www.dealertrack.com)
DealerTrack's intuitive and high-value software solutions
enhance efficiency and profitability for all major segments of the
retail automotive industry, including dealers, lenders, OEMs,
agents and aftermarket providers. Our solution set for dealers is
the industry's most comprehensive. DealerTrack operates the
industry's largest online credit application network, connecting
approximately 17,000 dealers with over 900 lenders. Our Dealer
Management System (DMS) provides dealers with easy-to-use tools and
real-time data access that will streamline any automotive business.
Dealers using DealerTrack AAX get the inventory management tools
and services needed to accelerate turns and increase profits. Our
Sales and F&I solution enables dealers to streamline the entire
sales process while structuring all types of deals from a single
integrated platform. DealerTrack's Compliance Solution helps
dealers meet legal and regulatory requirements and protect their
hard-earned assets. DealerTrack's family of companies also includes
data and consulting services providers ALG and Chrome Systems. For
more information, visit www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary
Statements
Statements in this press release regarding the functionality of
the DealerTrack Compliance Solution, and all other statements in
this release other than the recitation of historical facts are
forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995). These statements involve a number
of risks, uncertainties and other factors that could cause actual
results, performance or achievements of DealerTrack to be
materially different from any future results, performance or
achievements expressed or implied by these forward-looking
statements.
Factors that might cause such a difference include the ability
of DealerTrack's Compliance Solution to help dealers comply with
rules and regulations, and other risks listed in our reports filed
with the Securities and Exchange Commission (SEC), including our
Annual Report on Form 10-K for the year ended December 31, 2009. These filings can be found on
DealerTrack's website at www.dealertrack.com and the SEC's website
at www.sec.gov. Forward-looking statements included herein speak
only as of the date hereof and DealerTrack disclaims any obligation
to revise or update such statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events or circumstances.
TRAK-G
SOURCE DealerTrack Holdings, Inc.