The Cost of Non-Compliance With legal requirements

The Cost of Non-Compliance With legal requirements

Fines applicable when employee’s records are compromised:

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  Civil: $1,000 per employee (if filing security is breached, all employees may be affected)
  
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  State: $1,000 per employee
  
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  Federal: $2,500 per employee
  

Other legal repercussions:

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  Individual lawsuits.
  
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  Class action lawsuits.
  

“The Gramm-Leach-Bliley Act or GLB Act, includes provisions to protect consumers’ personal financial information held by financial institutions. There are three principal parts to the privacy requirements: the Financial Privacy Rule, Safeguards Rule and pretexting provisions.”

Applicable penalties for non-compliance:

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  Civil penalties: $10,000 per violation
  
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  Officers, Directors & Financial Institutions: $100,000 per violation including imprisonment for up to five years (important for dealers that provide financing directly)
  

The Privacy Rule applies to car Automobile Dealers who:

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  Extend credit to someone (for example, through a retail installment contract) in connection with the purchase of a car for personal, family, or household use;
  
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  Arrange for someone to finance or lease a car for personal, family, or household use; or
  
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  Provide financial advice or counseling to individuals.