CONSUMER FINANCIAL PROTECTION BUREAU CAUTIONS MILITARY LENDERS AGAINST ILLEGAL MILITARY ALLOTMENT PRACTICES

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) sent letters this month to several companies that sell retail goods to military servicemembers, advising them to review their websites and other advertising for potentially misleading marketing and to review other practices related to payment by military allotment. Active-duty servicemembers are not permitted to use allotments to pay for personal property such as vehicles, appliances, and consumer electronics. The CFPB is concerned that companies that are still advertising repayment by way of military allotment may potentially be violating federal consumer financial protection laws.   

“Companies that are still advertising repayment via military allotment may be violating the law,” said CFPB Director Richard Cordray. “Companies should give consumers accurate and reliable information so they can make the best decisions for their own financial situations. We will continue our work protecting servicemembers and promoting a fair and transparent marketplace for all consumers.” 

CONSUMER FINANCIAL PROTECTION BUREAU AND DEPARTMENT OF JUSTICE REACH RESOLUTION WITH HONDA TO ADDRESS DISCRIMINATORY AUTO LOAN PRICING

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) resolved an action with American Honda Finance Corporation that will put new measures in place to address discretionary auto loan pricing and compensation practices. Honda’s past practices resulted in thousands of African-American, Hispanic, and Asian and Pacific Islander borrowers paying higher interest rates than white borrowers for their auto loans, without regard to their creditworthiness. As part of today’s order, Honda will change its pricing and compensation system to substantially reduce dealer discretion and minimize the risks of discrimination, and will pay $24 million in restitution to affected borrowers. 

“The CFPB is committed to creating a fair marketplace for all consumers, and other auto lenders should take note of today’s action,” said CFPB Director Richard Cordray. “Honda’s proactive decision to move to a new pricing and compensation system demonstrates industry leadership and represents a significant step towards protecting consumers from discrimination.” 

Networking at Conference or Events

As we approach the Summer months where there are often events, conferences and more consider taking this approach at your next event. This comes from Ellen Reddick with Impact Factory Utah, a firm that provides strategic consulting, executive coaching and speaking services.

"The prospect of walking into a business networking event or conference can be both exciting and daunting. By utilizing a few key social skills for business, these events can become more manageable and allow for real growth for you personally and your client list. 

The first step takes place before you even arrive at the convention center or conference hall. The promises of legendary speakers and hoards of contacts often leave attendees overwhelmed. Go in with realistic expectations: you won’t be able to meet all the attendees, and nor should you. Rather, you should focus on meeting a handful of people from similar businesses and try to build meaningful relationships with these individuals. Your goal should not be to collect a stack of business cards but to make real contacts that will further your career.

Mobile Phone Etiquette

As small business owners, the mobile phone is one of our most important tools. So important, that we may forget that “anywhere and everywhere” is not our office.

As your business grows, it’s not just your own behavior with a cell phone you have to think about. You also have to make sure your employees exhibit professionalism, stay safe and present a positive public image of your business while using mobile devices.

1. Move 10 feet away if you must take a call. If you must take a call when you are face-to-face with someone, first excuse yourself politely with a brief explanation as to why the call is especially urgent and can’t wait. Then, move to a location where you can respect the personal space of others. Some recommend that you move at least 10 feet away from others.

Ideally, though, you should avoid interrupting a face-to-face conversation to take a cell phone call. Interrupting the party you are with sends a message that he or she is less important than the caller.

UCDU to Partner with Scionetix

Dated May 28, 2015, Salt Lake City, UT, The Used Car Dealers of Utah announced today that they are partnering to provide their members a reliable defense for on-site computer systems and networks against intrusion attacks. The partnership agreement is with SCIONETIX, LLP, a Utah-based Network Security Company.  SCIONETIX, LLP will secure for participating members their on-site computer systems and networks.  They will also provide a reliable defense against data intrusion attacks and sensitive information, as well as viruses and malware.

“Companies with small business networks are under attack today like never before.  Hackers are using sophisticated and automated devices to indiscriminately probe thousands of IP addresses each day across the web”, says SCIONETIX Owner and Manager, Tom Anderegg.  “Today’s cyber criminals are looking for one thing, vulnerabilities.  If they find them, they exploit any weakness to see how far into a system they can get.  This causes havoc that is often fatal to the business.”

Network Security 101

By Tom Anderegg CMO and Brad Lindsay, NSA,  SCIONETIX, LLP

When Teresia (not her real name) arrived for work recently, her business’s network security was the furthest thing from her mind.  Sitting at her desk, she had a basic knowledge of common-sense practices which she felt confident would be sufficient to keep her business safe.  She wasn’t the type to download dubious content from the web or employ weak passwords.  She regarded her computer as a no-nonsense work tool that was essential for her to accomplish her duties as the CFO for her small, Midwest specialty manufacturing company.  What she didn’t know was that along the way, a little piece of malware had slipped into her PC.  This hidden piece of program would soon threaten her company’s survival.

Teresia’s malware did one simple thing: It caused her browser to redirect all her bank communication to a set of phony websites that looked just like their legitimate counterparts.  When she logged into the look-alike website, yielding her username and password, a message appeared prompting her to call customer service about a problem with the company’s account.  Trustingly, she dialed the number on the screen and after a few simple questions from the phony agent on the line, her company’s bank account was drained.  More than $300,000, gone in minutes.
Disaster?  You bet!  And like the mark of a well-played con, she was left holding the bag.
As a business owner, you may think, “This probably won’t happen to me.  I’m too small.”  However, the New York Times recently reported that, “Gartner Research estimates that more than 10% of small businesses have had funds stolen from their bank accounts—losses totaling more than Two Billion Dollars.”

Now, here’s the point:  Small business owners can no longer rely on security through obscurity.  Information and network security is a need of every business owner today and survival as a business depends upon it.  The National Cyber Security Alliance reports that 60% of small businesses, having fallen victim to cyber-crime go out of business within 6 months.  Recovery is just too expensive and the detriment to reputation and brand are irreparable.   For instance, the most current Verizon Data Breach Investigation Report, for the first time ventured to quantify the cost of a security breech:  “$52,000 to $87,000 per 1000 pieces of information.”  The thing we all need to recognize is that the cost of securing a business network is penny’s-on-the-dollar compared to recovering after an attack.
The good news is there are things you can do to protect your business network that are both affordable and sensible.

2015 Dealer License Renewal

By now you should have received your 2015 Dealer License Renewal information or you should be receiving it in the next few days. Last year was the last year you received a mail reminder to renew your MVED business license. Everyone should renew via the website mvp.tax.utah.gov website as you did last year. The owner of the organization should have set up an account for the new system last year. If you do not have the log-in information please contact MVED at 801.297.2600. 

MVED no longer needs a copy of the renewal confirmation page. They will be able to see the renewal 24 hours after you renew online. If you have plates please be sure to send MVED proof of current insurance as your renewal will just sit in a hold status until after they have received your proof of insurance for the business plates.

You will not be able to go in and wait for the renewal to be processed. All renewals will be processed within a few days of receipt and MAILED back to you.

Also please note that all MVED licenses must be renewed by June 30th. If you fail to renew your license online by the designated time (June 30th), you will be required to come into the MVED office and complete physical paperwork. Also note that the 3 Hour Dealer Training is required with your license renewal. This can take up to 24 hours to show in the MVED system so don't delay your education to the end as well. You can complete your dealer renewal education online with IDS at www.idsinfo.com or with one of their many in-person classes or Home Study Course.