August 2008

AFIP Testing
Local & On-Demand

Seven Deadly Sins of F&I

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Red Flag Program for Dealers

While dealers must be in full compliance with the Red Flag Rule by November 1, 2008, somewhere in the middle of this, we need to sell some cars.  In response to the pending legislation, AFIP has released The F&I Manager’s Guide to the Red Flag Rule.  The material isn’t legal advice – it’s practical instructions to develop a program that fits into your dealership’s operations without requiring additional paperwork for F&I managers.  The guide is available to AFIP Industry Members, AIGA members, and dealers.  

The GUIDE Includes:
  • A complete overview of the Red Flag Rule and the policies and procedures needed to meet the standards it imposes
  • Modifiable templates (on CD) to tailor you dealership’s Identity Theft Prevention Program to meet the Red Flag Rule standards.  Templates are also provided for job descriptions for those charged with implementing the dealer’s program with word tracks to guide customer-contact personnel when addressing Red Flag issues with customers.
  • An F&I office sign alerting customers to the Red Flag Rule requirements.  The sign deters potential identity thieves, shows customers you’re committed to their protection, and gives F&I managers a visual prop to explain to customers why they’re being asked additional questions.
  • The sturdy Red Flag Rule F&I DeskCheck, an easy-to-use aid for screening customer-provided information for potential indicators of identity theft (red flags), including an SSN verification routine.
  • A copy of the Red Flag Rule as established by the FTC with current quotable statistics and facts about identity theft and instructions for addressing credit alert and credit lock situations.

Special Considerations

Specific Results – Flexible Systems
While the Rule is quite specific about what the end result must be, it offers a fair measure of latitude in determining the applicable Red Flags and the systems implemented to apply them to actual situations with regard to detecting, deterring, and responding to identity theft.  

Qualified Legal Review
Every effort has been made to ensure that The F&I Manager’s Guide to the Red Flag Rule speaks to both the spirit and letter of the FTC’s interpretation of the governing legislation.  Nevertheless, once this material has been modified to meet the unique needs of your store, it must be reviewed by competent legal counsel (for whom the dealership is a bona fide, fee-paying client) before the board approves the program and it is implemented. The attorney should issue a letter to the board stating that the program as tendered for review (in his or her opinion) satisfies the requisites of the Rule.

This applies to the material generated by EVERY program provider or outside service vendor, including the Red Flag aids drafted by attorneys – the board should not approve the modified finished product unless it has been reviewed and affirmed by legal counsel acting at the behest of the board.

Board Approval
The FTC or other regulatory agency, the plaintiff’s bar, and the media will want to know exactly where to aim the blame, whether justified or not, for any identity theft infraction or program-sparked challenge.  As such, those responsible for overseeing the overall operations (the board of directors or other managerial entity acting in its stead) should have the final word about whether the plan is adequate.  

Order Now!

The F&I Manager’s Guide to the Red Flag Rule
plus shipping and handling and applicable taxes

AFIP Industry Members & AIGA Members should contact
 AFIP for wholesale pricing and dealer-support information.

Red Flag support is an excellent opportunity to provide
 vital additional services to your dealer clients.


Go to or call 817.428.2434.

Copyright 2008 - Association of Finance & Insurance Professionals