Increasing numbers of dealers are utilizing digital deal jackets, an increasingly common technology that promises new efficiencies throughout the sales and financing process. But 700Credit’s Ken Hill warns dealers that, without proper, Federal Trade Commission-required safeguards, customer data may be at risk.

First on Hill’s list is copies of customers’ driver’s licenses, which, counterintuitively, are not often digitized, even for digital dealer jackets.

“A recent industry survey revealed that only 19% of dealers collect digital copies of licenses, with an alarming percentage still relying on outdated methods such as photocopying,” writes Hill, managing director of 700Credit, in a new column for DealerELITE. “This highlights the urgent need for dealerships to adopt more secure and efficient digital processes that comply with the new regulatory requirements.”

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