6 steps to dealership compliance success

Is your dealership on the path compliance, as far as current auto lending compliance practices are concerned? Well, if you’re not, Stephen Roennau , Vice President of Compliance for EFG Companies has six keys to success.

Number one: Identify a compliance leader. Have someone responsible for regular compliance training, new employee education and auditing F&I processes.

Number two: Put procedures in writing: Roennau suggest documenting each step of your f&i processes and have the compliance leader review it for potential holes.

Number three: Ensure consistent rate markup. Do this by implementing NADA’s Fair Credit Compliance Guidelines.

Number four: Provide transparent, consistent F&I product pricing. Since 2011, the FTC has brought more than 25 cases challenging illegal practices in the area of dealership business. So review your F&I product pricing models to ensure it is consistent for customers.

Number five: Utilize a complaint management system. Roennau suggest online and offline where complaints can be reviewed by managers and addressed directly.

And number six: Audit, audit, audit. Consider implementing recurring, random audits to ensure your team is complying with local, state and federal laws. To get more on this information, check out the current issue of Car Biz Today Magazine.