April 6, 2007
Volume #1, Issue #14

*Special Edition*

     - Privacy, Safeguards, and
       Compliance Hot Topics

     - ACTION ALERT!  Call Gov. Ritter

        to VETO SB-112
     - Update on Sunset Review

    Click here for Open Road archives.


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ACTION ALERT:  Ask Gov. Ritter to VETO the lending institutions' bill that would end MVDB and AID oversight of their repossessed auto sales.


Don’t miss this important compliance seminar!

Dealerships around the country are increasingly being targeted by plaintiffs’ attorneys. The basis for many of these lawsuits can be technical violations of federal laws and regulations. Plaintiffs’ attorneys share information, and they often latch onto a certain target area if there seems to be wide industry non-compliance or unawareness. With this in mind, one of your first lines of defense should be to ensure that you are compliant with those areas that have been identified as “hot topics” based on litigation and enforcement actions in other parts of the country. It will typically be just a matter of time before similar actions start hitting dealers in Colorado.

CADA has arranged to bring to you an industry compliance expert to review several key “hot topic” areas of dealer compliance, including the following: 

  • Safeguards and Privacy rules are coming under increasing enforcement activity and scrutiny.

    • Dealers must have a Safeguards Program Coordinator, conduct a risk assessment, implement written safeguards to control risks, oversee service providers, and re-evaluate periodically

    • Document shredding, definition of “non-public information”, consumer privacy notices, opt-out rights

  • Fair Credit Reporting Act / Adverse Action notices – dealers may not be able to rely on financial institution notices alone; recent court decisions against dealers

    • Restrictions on credit reports, “permissible purposes”, OFAC checks, fraud alerts, ID theft

  • Cash reporting rules – overview of responsibilities, IRS audits and selling vehicles to customers without Social Security numbers.

  • Negative equity (over-allowance) disclosures and relevant court cases against dealers.

  CLICK HERE to review more details of the topics to be covered.


* * * * * * *

  CLICK HERE for a registration form you can return by mail or fax.
Select the respective link below to register online. 


More about the presenter, Rob Cohen:

Rob Cohen, President - Auto Advisory Services



Rob Cohen started with Auto Advisory Services in 1994, and became president in 2006. Prior to becoming partner, Rob represented dealers in litigation for four years. Rob specialized in the defense of consumer claims and represented licensees before DMV administrative hearings.

He developed a strong background inside dealerships by working as a car salesman and doing F&I during law school. Rob has also served as General Counsel for a large automotive group in Los Angeles. Rob received his B.A. and M.B.A. from the University of California, Irvine and then went on to earn his J.D. from Whittier College, School of Law.


Rob currently serves as Vice President of the National Association of Dealer Counsel (NADC), is editor of The Defender (the NADC newsletter), writes a compliance column for Ward’s Dealer Business, and has been published in the Orange County Business Journal and F&I Management and Technology.


He is a frequent speaker and trainer on a wide range of subjects pertaining to dealership sales and finance compliance. Rob co-authored the top-selling Automotive Dealership Information Safeguards Manual, the Automotive Dealership Identity Theft Guide, as well as the recently published Vehicle Finance and Compliance Documents Guide. His high-energy style and in-depth knowledge of industry practices bring otherwise boring compliance topics to life.


Comprehensive Safeguards & ID Theft Manual Available to Seminar Attendees for Discounted Price


Just released!  2007 Version, Automotive Dealership Information Safeguards & Identity Theft Prevention Manual


Auto Advisory Services’ Information Safeguards & ID Theft Prevention Manual is a “must have” for all dealerships looking to comply with the FTC’s Safeguard Rule. With nearly 2,000 copies sold nationwide, this “turn-key” written manual is an easy way to implement your dealership’s safeguards program. This manual can be customized to meet your dealership’s individual requirements by simply checking the boxes that represent your chosen policy.


Forget about trying to draft your own agreements, letters or forms. Each manual contains the following sample forms and letters: Service Provider Security Agreement (long and short versions), Computer User Access Rights Form, Sample Letter to Service Providers, Service Provider Agreement Log, Employee Security Agreement, Training Attendance Log, Computer Safeguards Testing/Auditing Log, and more.


The recently revised 2007 version contains a new risk assessment chapter that simplifies your implementation by walking you through those areas of customer information collection and handling, about which the FTC is most concerned. The new risk assessment section can also be extremely helpful in reevaluating your existing program. A new 100-page section on identity theft prevention and compliance has also been added.


Regular Price=$295
Discounted price=$199, for attendees at the April 2007 CADA Seminar


The following NADA Publication will be included in the seminar handouts:


NADA’s publication, “A Dealer Guide to Safeguarding Customer Information”, provides guidance in each of the key safeguards
compliance areas.


A $25 value (regular cost to NADA members), it will be included in the seminar handout materials for this seminar—at no additional charge.


Date of Publication:  1/1/2003

Pages:  48 pages


If you have additional questions on this seminar, please contact either Tammi McCoy
or Tim Jackson:



If signed into law by Gov. Bill Ritter, SB-112 would essentially deregulate banks, credit unions and other lending institutions in Colorado from oversight by the Motor Vehicle Dealer Board and the Auto Industry Division for the lender's sale of foreclosed, repossessed and off-lease return vehicles. Current Colorado law allots up to twelve repossessed sales per year without licensure. This bill would allow an unlimited number of repossessed vehicles to be sold with no regulatory oversight.


  CLICK HERE to read this informative article by CAR lobbyist Jeremy Cottrell. 

CALL or E-MAIL Gov. Ritter and
encourage him to VETO SB-112.

Phone: 303.866.2471

* * * * * * *



The Sunset Review bill (SB-221) for the Colorado Motor Vehicle Dealer Board was passed on its second reading Monday in the Colorado Senate with a unanimous vote.


Basically every priority we had identified and established was passed as we proposed.


Bi-partisan support was instrumental in the victory. President of the Senate, Joan Fitz-Gerald, (D-Golden) both supported and spoke on behalf of our position on the Senate floor while Senator and former new car dealer, Ken Kester (R-Las Animas) offered the amendment.   


The Legislative Policy Committee-Sunset Review Topic Group had established a list of 12 priorities. We won to some degree or entirely on each of the 12 priorities.

  • An amendment to keep the board at three new car dealers, three used car dealers and three consumers passed on a vote of 23 to 10, with all Republicans supporting us and eight Democrats supporting us.

  • A subsequent amendment that permits the use of Administrative Law Judges (ALJ) by the Motor Vehicle Dealer Board passed unanimously.

CAR lobbyists Mike Feeley and Jeremy Cottrell provided the ‘feet on the ground and the face of the legislative offense’ that ensured the Capitol victory, along with support of other auto retail advocates.  


Next up for SB-221 will be the final passage upon third reading in the Senate before it moves over to the House side. We are pleased to have Representative Joe Rice, former mayor of Glendale, as our bill sponsor on the House side. We have already met with Representative Rice personally to discuss our position and look forward to his support on the entire Sunset Review legislative process.


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Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO  80203
Telephone:  303.831.1722
  |  Facsimile: 303.831.4205


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