Categories
Compliance

Prepared for an FTC Investigation?

Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies

 

Contributing Author: Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies

Earlier this month, the Federal Trade Commission (FTC) announced a planned study on the auto buying and financing experience. Since 2011, the FTC has brought more than 25 cases challenging illegal practices in the area of dealership business. These cases, combined with the Consumer Financial Protection Bureau’s (CFPB) investigation into auto financing, have most likely caused the FTC to take a close look at the retail automobile industry.

While the CFPB does not have jurisdiction over auto retail, it has created waves in the industry through auto finance regulations. Now that an agency with authority over the industry is taking a deeper look at dealership practices, it’s more important than ever to recognize and act upon the fact that it’s time for more transparency in the auto buying process.

The good news is the FTC is still in the exploratory phase of the study, asking for public comments and feedback from interested parties on how the study should be conducted. Meaning, they have a ways to go before they conduct the study, compile the results, and formulate an action plan based on those results. Dealers have time to take a closer look and tighten their processes before a large-scale investigation ensues.

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Categories
Dealership Training F&I

Overcoming Objections Starts with Sales

Hollis Goode Blog Headshot

 

Contributing Author: Hollis Goode, Regional Vice President, Dealer Services, EFG Companies

Overcoming objections is quite possibly one aspect of the F&I office that is focused on the most. Classes abound on this topic. Dealers, in tune with their teams, provide one-on-one coaching sessions on this alone. After all, the more successful an F&I manager is at overcoming objections, the better their numbers, resulting in increased profit for the dealer.

I’d posit that many training courses/one-on-one sessions start something like this:

“The vehicle service contract is too expensive. Go.”

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Categories
Compliance

Staying Vigilant on Compliance

Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies

 

Contributing Author: Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies

The auto industry won a small victory over the Consumer Financial Protection Bureau (CFPB) in November when the House passed the Reforming CFPB Indirect Auto Financing Guidance Act. In its current form, this piece of legislation directs 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,
  • Studying the costs and impacts of the guidance to consumers, as well as women-owned and minority-owned small businesses.
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