Compliance Question of the Week

Our credit union participates in indirect lending, which involves auto dealers signing up new members. What are the Customer Identification Program (CIP) rules for the credit union?

You may use non-documentary methods, such as a credit report or a copy of a driver’s license or passport, to verify identity. However, your procedures must be designed to enable you to form a reasonable belief that you know the true identity of your member. If you are confident that your procedures identify your members, then you should be able to continue using that process as long as the procedures are clearly documented.

Related Links

31 CFR 1020.220

Interested in learning more?

Join us for a free lunch-and-learn meeting hosted by Autoland, Strategic Link’s preferred auto-buying partner, on March 29 in Seattle. Find out why credit unions of all sizes trust Autoland to help them achieve both their strategic and loan goals, and how Autoland generated almost $100 million in direct auto loans for their credit union partners in 2012 alone.

Three Reasons to Attend:

  1. The auto industry is expected to sell 15.4 million vehicles in 2013, and today’s tech-savvy car buyer has new demands and many options when searching for his or her next car loan.
  2. The banks and captives are getting even more aggressive in 2013. They want your loans.
  3. Autoland generated almost $100 million in auto loans in 2012 and more than $1.8 billion in sales for its partners in the past 10 years using leading technology solutions. Learn how a strategic partnership with a cutting-edge auto-buying service can help you achieve your strategic goals in 2013 and beyond.

What: NWCUA & Autoland Lunch and Learn – Your key to generating direct auto loansWhen: March 29, 2013, from 1–2:30 p.m.
Where: Seattle Metropolitan Credit Union (801 3rd Ave., Seattle, WA 98104)
Price: Free
Register Now

About Autoland

Autoland is a credit union-owned cooperative, operating on the principle of people helping people since 1971. Since expanding to serve credit union members in the Northwest in 1998, Autoland has delivered high-quality, direct loans to credit union partners, helping them differentiate themselves by offering members an incredible auto-buying experience with industry-leading technology.

Autoland’s one-stop automotive solution has a customizable suite of products, including in-house consultants, cutting-edge web tools, a new and pre-owned vehicle purchasing service, trade-ins, aftermarkets, marketing and staff promotions, and more… all at no cost to the credit union!

From its humble beginnings, Autoland has grown to become the nation’s largest credit union auto-buying service, delivering thousands of cars annually while driving direct loans and relationships, one member at a time.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News.