Tag: Compliance

Categories
EFG Companies

Why AFIP Compliance Training Matters

Recent changes by the federal administration to the Consumer Financial Protection Bureau and the Federal Trade Commission might signal some retail automotive franchise and independent dealers to let down their F&I compliance training guard. That’s a really risky move. While federal compliance enforcement might be handcuffed at the moment, state and local compliance regulations are in full force. Why risk your valuable revenue to compliance risk?

At EFG, we believe compliance is everyone’s responsibility. That’s why we created Common Sense Compliance training for all employees. Broken down into clear, actionable language, we work hard to take the complicated legalese out of compliance.

As a dealer principal or general manager, compliance ultimately lands on your desk. A daily 10-minute walk around your shop can pinpoint simple fixes that could become compliance gotchas. Unsecured files or documents left on a copier are just a few examples. Our Deal Checklist is a handy tool to reinforce good compliance habits.

Train for Compliance

The Association of Finance and Insurance Professionals (AFIP) offers a multi-tiered certification ladder for financial services professionals and certified F&I professionals to stay up to date on the minute and ever-changing details of this complicated field. EFG recommends taking compliance training one step further and designating a compliance officer on your dealership team.

There are measurable benefits to training compliance managers and dedicated F&I team members. Your F&I team is tasked with protecting your dealership every day from compliance risk. You can lessen your risk of running into legal problems during the sales and F&I process as well as reduce the money you have to spend  on legal settlements, fines, and similar matters. Compliance training also reduces the number of customer  when employees are properly trained  to close deals without cutting corners or misleading the customer.

AFIP Compliance Training on Us

AFIP training comes with a cost which is multiplied if you have several rooftops. At EFG, we offer AFIP certification training, administered by our own AFIP-certified compliance experts. This training not only maximizes client profitability but provides the latest information on federal, state and local regulations.

This month, EFG is offering an AFIP Certification Voucher, valued at $8,000, for one employee to complete our AFIP compliance training course for qualified dealers. With all of the changes happening in compliance these days, don’t risk your profitability. Compliance still matters. Click here to see if you qualify.

You can see an example of the depth of training offered in our Common Sense Compliance booklet. Our goal is to keep your people trained, your dealership secure, and your revenue safe from compliance mistakes.

At EFG Companies, we’re more than an F&I provider, we’re your business partner in the retail automotive industry. Together, let’s MAKE MORE this year.

Connect with our Training Director, Anthony Olivieri on LinkedIn, or contact him directly via email with any questions you have about compliance training. He can also be reached at 682-206-8528.

Categories
Compliance

Flex Those Compliance Muscles

The Consumer Financial Protection Bureau (CFPB) has been busy this year bringing lawsuits against auto lenders and servicers. Just this month, the agency sued the servicing arm of U.S. Auto Sales, alleging USASF Servicing cost consumers more than $10.1 million by mishandling customer refunds, double billing for collateral protection insurance and failing to apply excess customer payments to interest. The suit also alleges that USASF Servicing wrongfully repossessed vehicles at least 82 times, erroneously triggered vehicle starter interrupter “kill switches” at least 7,500 times, and incorrectly activated a 10-second series of tones meant to signal late payments 71,000 times. Imagine the consumer’s surprise when their car won’t start or begins beeping – especially if their loan was in good standing or they weren’t informed of these archaic little features when they purchased the vehicle!

Speaking of annoying entanglements, I’m sure your dealership has been busy implementing policies and procedures designed to support the Federal Trade Commission (FTC) Safeguards Rule. While these added requirements may seem burdensome, here’s an interesting way to think about those guardrails surrounding the customer’s data.  So far this year, the FTC has received 5.7 million total fraud and identity theft reports, 1.4 million of which were identity theft cases accounting for $10.2 billion in losses. According to the National Council on Identity Theft Protection, there is an identity theft case every 22 seconds in the U.S. and 33 percent of all Americans have faced some kind of attempt in their lives, with experts predicting this number could increase significantly this year.

While the CFPB and FTC are focused on lender lawsuits and other fronts, there is an opportunity for retail automotive to take advantage of the lull. Now is a great time for your dealership to flex its compliance muscles.

Continue reading “Flex Those Compliance Muscles”
Categories
Compliance

The Current Climate for Regulatory Compliance

The retail automotive market has found itself in an interesting situation. On one hand, retail sales are rebounding nicely, with strong price pressure coupled with continued low interest rates. On the other hand, all signs are pointing to an increased environment for regulatory scrutiny from an  hyper-focused Consumer Finance Protection Bureau (CFPB), Federal Trade Commission (FTC), and various local officials.

New leadership within the CFPB has signaled through their rulemaking agenda that automotive lending practices will garner increased scrutiny. New legislative bodies within state and local governments in many areas have followed suit to respond to discriminatory lending practices and perceived predatory consumer behavior.

Couple this renewed regulatory interest and sales environment, with a host of new fraud and cybersecurity schemes that can trip up any company, no matter how big, and the situation gets even more convoluted.

Continue reading “The Current Climate for Regulatory Compliance”