It’s understandable that dealers do not enjoy having to think about compliance. The myriad, ever-changing laws, rules and regulations that apply to each deal can be confusing and frustrating. But non-compliance can lead to thousands of dollars in fines, class-action penalties,…
How Operations Oversight Aids in F&I Compliance
It seems that you can’t read the news without learning of yet another massive corporate data security breach. As much as we all hear about the importance of safeguarding customer information, studies show that a majority of data breaches are caused by employees. In your showroom, that…
5 Ways to Make Sure Your Compliance Program Is Effective
Compliance can be a costly part of doing business as a dealership. A 2022 article in Auto Dealer Today estimated that the average dealership spends between $162,385 and $276,925 per year to address regulatory…
Keeping Aftermarket Products In Line: F&I Compliance Tip
Aftermarket products are important to dealerships’ bottom line. Recent NADA research has shown that 50 percent of profits for the average dealership come from the sale of aftermarket products. A majority of these profits…
Monitor Dealership Activity: F&I Compliance Tip
One of the biggest threats to dealership compliance is inside the showroom. That’s right: your employees. Some studies claim that a majority of data breaches are caused by workers, a sobering statistic that may…
Adverse Action Notices: F&I Compliance Tip
An “adverse action” is, basically, a refusal to grant credit, the termination of an account, or the changing of an account’s terms in a manner unfavorable to the consumer — such as unwinding a spot delivery…
F&I Compliance Tip: Recordkeeping and the Destruction of Records
Staying compliant with State and Federal regulations means more than red flags and adverse action notices. In fact, there are federal laws and regulations regarding company records around vehicle sales, leases, F&I documents, and more.
F&I Compliance Tip: Save and Store Your Pencils
In terms of compliance, saving pencils matters because it guards against misunderstanding and is helpful in terms of showing an auditor, regulator, or plaintiff’s attorney how a deal progressed.
F&I Compliance Tip: Monitor Dealership Activity
In order to maintain compliance, dealership management must be prepared and proactive, with comprehensive training and real-time monitoring.
F&I Compliance Tip: Properly Disclose Aftermarket Products
Consistency is the key to creating the type of experience that meets compliance standards and helps to create an environment of trust and credibility.
F&I Compliance Tip: Adverse Action Notices
An “adverse action” is, basically, a refusal to grant credit, the termination of an account, or the changing of an account’s terms in a manner unfavorable to the consumer.
