DealerTrack Backs Its Industry-Leading Compliance Solution With $25,000 Red Flags Guarantee

LAKE SUCCESS, N.Y., June 7, 2011 /PRNewswire/ -- DealerTrack (Nasdaq: TRAK) today announced the company will offer an unprecedented $25,000 Red Flags Guarantee to current and new subscribers of its Compliance Solution, the most comprehensive suite of compliance tools available in the automotive retail industry.

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The new Red Flags Guarantee from DealerTrack will cover associated government-issued fines up to $25,000, should a dealership be cited for non-compliance with the Red Flags Rule while using the DealerTrack Compliance Solution.

"With auto identity theft on the rise, a new era of regulatory requirements has emerged, and DealerTrack has dealers covered when it comes to compliance," said Robert Granados, vice president and general manager, Finance Solutions, DealerTrack.  "Backed by our extensive experience navigating the compliance and regulatory landscape and years of safeguarding dealers from identity theft, we can confidently offer this guarantee.  No other company delivers the breadth of compliance safeguards coupled with such a guarantee."

The DealerTrack Compliance Solution helps protect a dealership throughout the sales and F&I process, including credit reports and Red Flags, credit application submissions, menu presentations, and document storage and retrieval.  The solution allows dealers to work all deals on one fully integrated and secure platform to streamline the process and protect their dealership and its customers.  

The Red Flags Rule, which is enforced by the Federal Trade Commission (FTC), requires businesses and organizations to adopt and implement an Identity Theft Prevention Program.  The program should be designed to detect, prevent and mitigate identity theft when establishing or maintaining consumer credit and certain business accounts.  The potential liability dealers could face from not complying with the rule includes, but is not limited to, $3,500 per violation under the Fair and Accurate Credit Transactions Act of 2003, up to $16,000 in penalties under the FTC Act, and potential lawsuits from the FTC and State Attorney Generals.

For more information about DealerTrack's Compliance Solution and its $25,000 Red Flags Guarantee, visit www.dealertrack.com/compliance.

About DealerTrack (www.dealertrack.com)

DealerTrack's intuitive and high-value software solutions and services enhance efficiency and profitability for all major segments of the retail automotive industry, including dealers, lenders, OEMs, agents and aftermarket providers.  DealerTrack, whose solution set for dealers is the industry's most comprehensive, operates the largest online credit application network in the United States, connecting approximately 17,000 dealers with more than 1,000 lenders. DealerTrack's Dealer Management System (DMS) provides dealers with easy-to-use tools and real-time data access to enhance their efficiency, while DealerTrack AAX delivers the inventory management tools and services needed to accelerate used-vehicle turn rates and help increase profits for dealers.  DealerTrack's Sales and F&I solutions allow dealers to streamline the entire sales process as they structure deals from a single integrated platform.  Its Compliance solution helps dealers meet legal and regulatory requirements and protect their assets. DealerTrack also offers additional solutions for the automotive industry including electronic motor vehicle registration and titling applications, paper title storage, and digital document services. DealerTrack's family of companies also includes data and consulting service 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 Red Flags Guarantee, DealerTrack's 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 dealers complying with the terms and conditions of the Red Flags Guarantee, the nature of FTC enforcement actions, 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, 2010. 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.

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SOURCE DealerTrack Holdings, Inc.