Author: efgmarketing

Categories
Compliance

CFPB – A Year in Review

Contributing Author: Steve Roennau Vice President Compliance EFG Companies
Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

A lot has happened with the Consumer Financial Protection Bureau (CFPB) in the past year. From large settlements to court rulings, the CFPB brought itself under the spotlight.

Let’s start at about this time last year. The House of Representatives passed H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act” with a strikingly majority vote of 332-92. The piece of legislation would direct the CFPB to amend how it issues guidance to indirect auto lenders by:

  • providing a public notice and comment period before issuing the guidance in final form;
  • making publicly available all information relied on by the CFPB, while also redacting any information exempt from disclosure under the Freedom of Information Act;
  • consulting with the Board of Governors of the Federal Reserve System, the Federal Trade Commission, and the Department of Justice; and,
  • study the costs and impacts of the guidance to consumers, as well as women-owned and minority-owned small businesses.

In addition, the bill would nullify the CFPB’s “Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act Bulletin”. This bulletin instructed lenders to either eliminate dealer pricing discretion, or constrain dealer pricing discretion by monitoring dealership practices and using “controls” to force dealerships to adjust their practices.

Continue reading “CFPB – A Year in Review”
Categories
Compliance Featured

EFG Companies Fortifies Dealer and Lender Data Security Through SSAE 16 SOC 1 Certification

soc-service-org_b_marks_2c_webEFG’s Continued Leadership in Both Compliance and Technology Sets Industry
Bar for Customer Service Excellence

EFG Companies, the innovator behind the award-winning Hyundai Assurance program, announced today it has been awarded the Service Organization Control 1 (SOC 1) Certification under the Statement of Standards for Attestation Engagements 16 (SSAE 16) guidelines from the American Institute of Certified Public Accountants (AICPA). This certification represents another significant achievement in EFG’s ongoing commitment to ensure industry-leading compliance for its clients and customers.

SSAE 16 is the most widely-recognized standard providing companies with a method for reporting information about the design and operation of internal systems and controls relating to privacy and security regulations.  SOC 1 reports are designed to certify whether a company utilizes uniform and reliable safeguards as a processor of data belonging to their clients and customers.

For EFG to obtain the SSAE 16 SOC 1 certification, more than 70 processes that could affect data security and business flow were evaluated. Examples of the processes evaluated include:

Continue reading “EFG Companies Fortifies Dealer and Lender Data Security Through SSAE 16 SOC 1 Certification”
Categories
Economy

Times – They Are A Changin’

Gabe Aldrete Vice President EFG Companies
Contributing Author:
Gabe Aldrete
Vice President
EFG Companies

Bob Dylan said it best – “If your time is worth saving, then you better start swimming, or you’ll sink like a stone.”

We’re over 10 days into the 4th quarter and the news is out. According to Business Insider, analysts expect the year to close out at 17.5 million vehicle sales. Automotive News recently stated that in comparison to last year’s growth, 2016 represents a flat market in terms of vehicles sold, revenue and profitability. Overall, the industry is still healthy. We are still at the peak of auto sales. And, dealers are still very profitable.

However, while dealers have benefited from six years of growth, the positive trends that kept vehicle sales momentum going are puttering out. The pent-up demand that everyone was talking about in 2010 and 2011 is virtually gone. After extensively broadening credit standards, lenders are starting to pull back from subprime. In addition, lenders are concerned about extending credit terms much more without affecting loss ratios.

Dealers who’ve been around for a decade or two are used to the cyclical nature of the industry. Any dealer worth their salt knows that when you get into challenging times, it’s time to look at other streams of revenue. Through the last recession, dealers became very good at pre-owned sales, service, and finance. Now is the time to take those skills and hone them even further. For example, used-vehicle prices are falling once again as a surge of off-lease vehicles enter the market, creating a greater demand for used than for new. It could be time to once again evaluate your floorplan to better determine your ratios of new to used vehicle inventory.

Continue reading “Times – They Are A Changin’”