auto finance compliance - Dealership Corridor

Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

Did you know that automotive dealerships must comply with roughly 60 retail automotive regulations in addition to the regulations for employers, small businesses, advertisers, general retailers, and finance organizations?

These rules touch a broad range of issues, including environmental, tax and finance rules, and a host of other consumer protections. It’s no wonder that compliance seems overwhelming.

The good news is that there are services available to help dealerships tackle compliance by taking a very methodical, common sense approach.

You’ve probably seen agents and product providers step-up their service model to include more services around compliance. This is actually an objective and cost-effective way in which to tackle improving compliance in your dealership.

Ask yourself:

Beyond in-store engagement, what compliance services do they provide?
Does my product provider see compliance as important enough to include a head of compliance on their corporate leadership team?
What compliance certifications does my product provider have?

Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

The Consumer Financial Protection Bureau (CFPB) had a busy first quarter of 2017 defending itself. In Q4 of 2016, the U.S. Court of Appeals for the District of Columbia ruled the CFPB “unconstitutionally structured”. In Q1 of this year, the CFPB began the appeal process and it’s not looking too good for them.

Among those supporting the unconstitutional ruling are:

The Department of Justice (DOJ)
15 state Attorneys General
American Financial Services Association (AFSA)

The DOJ stated that the ruling should be upheld in its entirety, including the remedy to give President Trump full authority to remove the CFPB’s director at will. In addition, the AFSA submitted a list of other suggested regulatory reforms for the CFPB to the Trump administration.

While the CFPB has been granted a rehearing of the initial case that determined the unconstitutional ruling, the regulatory agency has still had its powers significantly curbed, specifically in the case of Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc.