Sales and F&I

Dealertrack Compliance Infographic

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START THE DEAL STRUCTURE THE DEAL FINANCE THE DEAL TRANSACT THE DEAL Desking Menu Selling Contracting Credit App Network Credit Bureau Check, Compliance & Reporting I N STOR E ONLINE ARE YOU IN COMPLIANCE AT EVERY STAGE OF THE DEAL? Every year brings new compliance challenges. As rules and regulations get more complex, it gets harder to manage compliance all on your own, with costly consequences if your dealership is not following standard procedures. We've put together seven best practices a dealer can follow to help ensure their compliance is covered across the deal flow. Provide a risk-based pricing notice to every applicant for credit. Risk-based pricing occurs when lenders offer consumers different interest rates or loan terms. Give the notice to the consumer once you receive their credit score information, and keep a copy in the deal jacket. Send adverse action notices when you need to. An adverse action notice informs a consumer that they have been denied credit or other account benefits based on information in their credit report. Knowing when to provide the adverse action notice is up to the dealer and could be easily overlooked or forgotten through human error. Adopt practices in line with the Equal Credit Opportunity Act and Fair Lending Policy. Implement a consistent markup rate — including aftermarket sales — for all customers, and only permit markdowns for significant, non-discriminatory business reasons. Be consistent in selling aftermarket products in the F&I office. Prepare scripts, FAQs and presentations that fairly and honestly state what the product is and how much it will cost. Make sure to document all re-contracted deals. When applicable, make sure to provide the customer with an adverse action notice for unwinding the original contract, and always date the new contract on the day both parties sign. Keep detailed documentation on file. Always store deal documentation in the deal jacket in case of an audit, to help safeguard against any potential misunderstandings. Perform internal spot audits. Ensure your team is following compliance practices to prevent violations and information breaches. 2 1 3 4 5 6 7 EVERY STAGE OF THE DEAL WANT TO LEARN MORE ABOUT HOW TO SAFEGUARD YOUR DEALERSHIP? Give us a call today at 877.357.8725 option 3

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