FARMINGTON HILLS, Mich., Oct. 31 /PRNewswire/ -- RouteOne LLC announced today that it has launched a best-in-class identity verification and authentication tool, powered by TransUnion, to assist dealers in complying with the Federal Trade Commission's (FTC) Red Flag Rule. Per this rule, dealers are required to implement an identity theft prevention program to detect, prevent, and mitigate identity theft in connection with the opening of a covered account, or existing accounts. While dealers must have a written program in place to address these rules by November 1, 2008, the FTC recently announced that it will delay enforcement of the Red Flag Rule until May 1, 2009. However, it is important to note that this recent announcement does not change:
1. the mandatory compliance date for the Red Flag Rule of November 1,
2008 (only the FTC enforcement has been delayed);
2. the mandatory compliance date for the Address Discrepancy Rule of
November 1, 2008; and
3. the mandatory compliance date and enforcement of the Red Flag Rule
issued by other federal agencies that regulate other financial
institutions (such as banks) of November 1, 2008.
Dealers should consult their legal counsel to determine if the FTC announcement affects their business.
RouteOne is the only provider of a Credit Aggregation System with an integrated identity verification and authentication tool that can be used to verify the identity of credit applicants for virtually all of the dealer's applications and which has access to both captive finance sources (Chrysler Financial, Ford Motor Credit, GMAC, Toyota Financial Services and the affiliates associated with each) and non-captive financing sources. The tool is completely integrated and may be used to help detect identity thieves seamlessly from within the RouteOne platform, and contains both a scoring system and out-of-wallet questions for triggered applicants based on a configurable risk threshold. In addition to the compliance benefit, subscribing dealers will benefit from fraud loss avoidance through access to real-time data matching against comprehensive consumer and fraud databases, and the application of sophisticated analytics and technology.
"RouteOne's identity verification and authentication tool can assist dealers in protecting their dealership from fraud, which is especially critical in these challenging economic times, in addition to meeting the Red Flag requirements," said Mike Jurecki, RouteOne CEO. "Fraud can cost finance sources, dealers, and consumers millions of dollars in losses per year. We look forward to helping dealers use our identity theft tool to protect all their financing business."
"TransUnion is pleased to support RouteOne in its efforts to assist the industry in managing the risk associated with identity fraud," said Pete Turek, TransUnion's vice president, Automotive. "With the use of advanced analytics, together, we are providing dealers with the tools to help them comply with the new FTC regulations in an efficient and effective manner."
No long-term contracts are required for the service, and dealers may select from a subscription based or transaction based pricing model that best fit their dealership. Dealers interested in subscribing may sign up directly through the RouteOne platform, or they may contact their TransUnion representative at 800.730.0126, or visit www.transunion.com/routeone/protectmydealership.
ABOUT ROUTEONE
RouteOne was formed in 2002 by Chrysler Financial, Ford Motor Credit Company, GMAC, and Toyota Financial Services to create a more streamlined credit application for automobile dealers and their customers. Providing access to more than 21,500 dealers in North America, RouteOne's web-based system allows automotive dealers to submit credit applications to the largest indirect lenders, request credit reports, and increase profitability with RouteOne's free Dealer Reporting Suite. RouteOne's open integration business model also allows the dealer to integrate with their choice of a wide variety of best in class providers, including DSPs, CRM systems, F&I modules and menu providers. RouteOne offers dealers a common platform for all their credit application financing needs. More information is available at www.routeone.com.
ABOUT TRANSUNION
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs more than 3,600 employees in 25 countries on five continents. www.transunion.com/business
CONTACT: Suzi Straffon
RouteOne LLC
248.862.7074