Sales and F&I

Today's Solutions Compliance Infographic

Issue link:

Contents of this Issue


Page 0 of 1

Disclaimer: This information is not meant as legal advice, and we do not purport to provide any legal or regulatory analysis. Consult with your attorney for any legal, regulatory, or compliance questions you may have. | *Point Predictive 2020 Annual Auto Fraud Report As more car shoppers start out online and dealerships offer more remote purchase options, compliance can be increasingly challenging. Follow these best practices to keep track of compliance actions throughout each deal: 1 From privacy notices to every buyer and risk-based pricing notices for credit applicants, to adverse action notices for consumers with issues obtaining credit, a compliance solution can help you provide notices at the proper times. Stay on top of consumer notices 2 Auto loan fraud topped $7.3 billion in 2020.* Protect your dealership and your customers from fraud and identity theft by running Red Flags and OFAC checks on every deal. Use out-of-wallet questions as needed to provide additional identity verification. Ensure ID verification throughout the deal 3 Implement a consistent markup rate–including aftermarket sales–for all customers, and only permit markdowns for significant, non-discriminatory business reasons. Adopt practices in line with the Equal Credit Opportunity Act and Fair Lending Policy 4 Prepare scripts, FAQs and presentations that fairly and honestly state what the product is and how much it will cost. Create and store disclosure records when customers decline to purchase aftermarket products. Be consistent in selling aftermarket products in the F&I office 5 Have the customer sign a state-specific eSign disclosure to indicate their consent to move forward. Use an eSigning solution that creates a time-and date-stamped audit trail. Include digital signing in your compliance policies and practices 6 When delivering a vehicle to the customer, re-confirm their identity and be sure to provide the proper documentation for delivery confirmation. Never negotiate terms and conditions at the consumer's home. Know the compliance steps for remote deliveries 7 Keep detailed deal documentation on file for the state-mandated period of time, stored digitally so it is accessible in case of an audit. Store and manage records to be ready for audits 8 Assign a compliance officer at your dealership to help ensure your team is following compliance practices to prevent violations and information breaches. Monitor your deal and staff compliance A RE Y OU E X P OSING Y OUR DE A L E R S HIP T O F INE S ? $43K Maximum penalty per violation of the Red Flags Rule * Fine for failing to comply with Adverse Action Notice requirements * $4K *As of 2021 and subject to alteration depending on the circumstances of a violation. Please seek legal counsel for verification and further details. Best Practices for Compliance at Every Stage of the Deal 8 Today's Solutions for Today's Compliance Challenges G E T S T A R T E D N O W MAINTAIN COMPLIANCE ON EVERY DEAL WITH DEALERTRACK COMPLIANCE $250K Criminal penalty for OFAC/SDN violations, plus jail time *

Articles in this issue

Links on this page

view archives of Sales and F&I - Today's Solutions Compliance Infographic