{"id":803,"date":"2015-05-06T13:38:30","date_gmt":"2015-05-06T18:38:30","guid":{"rendered":"http:\/\/efgintelligence.com\/dealershipcorridor\/?p=803"},"modified":"2016-01-21T15:52:05","modified_gmt":"2016-01-21T21:52:05","slug":"control-profit-potential","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/dealershipcorridor\/control-profit-potential\/","title":{"rendered":"Are You In Control of Your Profit Potential?"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/efgintelligence.com\/dealershipcorridor\/wp-content\/uploads\/sites\/2\/2015\/01\/Karen-Klees-Blog-Headshot.png\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" data-attachment-id=\"707\" data-permalink=\"https:\/\/efgintelligence.com\/dealershipcorridor\/compliance-2015\/karen-klees-blog-headshot\/\" data-orig-file=\"https:\/\/i0.wp.com\/efgintelligence.com\/dealershipcorridor\/wp-content\/uploads\/sites\/2\/2015\/01\/Karen-Klees-Blog-Headshot.png?fit=212%2C360&amp;ssl=1\" data-orig-size=\"212,360\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"Karen Klees Blog Headshot\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/efgintelligence.com\/dealershipcorridor\/wp-content\/uploads\/sites\/2\/2015\/01\/Karen-Klees-Blog-Headshot.png?fit=176%2C300&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/efgintelligence.com\/dealershipcorridor\/wp-content\/uploads\/sites\/2\/2015\/01\/Karen-Klees-Blog-Headshot.png?fit=212%2C360&amp;ssl=1\" class=\"alignright size-full wp-image-707\" alt=\"Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies\" src=\"https:\/\/i0.wp.com\/efgintelligence.com\/dealershipcorridor\/wp-content\/uploads\/sites\/2\/2015\/01\/Karen-Klees-Blog-Headshot.png?resize=212%2C360\" width=\"212\" height=\"360\" srcset=\"https:\/\/i0.wp.com\/efgintelligence.com\/dealershipcorridor\/wp-content\/uploads\/sites\/2\/2015\/01\/Karen-Klees-Blog-Headshot.png?w=212&amp;ssl=1 212w, https:\/\/i0.wp.com\/efgintelligence.com\/dealershipcorridor\/wp-content\/uploads\/sites\/2\/2015\/01\/Karen-Klees-Blog-Headshot.png?resize=176%2C300&amp;ssl=1 176w\" sizes=\"(max-width: 212px) 100vw, 212px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3>Contributing Author: Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies<\/h3>\n<p>If you\u2019ve been paying attention to industry news, you probably know about the Federal Trade Commission once again setting its sights on add-on products. While large industry players expected this on the heels of the CFPB\u2019s increased oversight into auto lending practices, <strong>many dealerships looking to make up for lost dealer reserve with the sale of F&amp;I products are looking to tighten up their policies and procedures.<\/strong><\/p>\n<p>If you haven\u2019t already begun re-evaluating your compliance procedures, now is the perfect time! While there are many elements to consider as you review your current policies and procedures for your existing product offerings, there is an upside. <strong>When sold in a compliant manner, F&amp;I products provide dealers the ultimate control in their profit potential.<\/strong><\/p>\n<p>This being said, applying compliance standards and scrutiny to your policies and procedures is growing in importance.\u00a0 A recommended starting point, as you evaluate your product offering, is to ask a simple question:\u00a0 <strong>Do your products\u2019 benefits fulfill a real and mathematically calculable customer need?\u00a0<\/strong><\/p>\n<p>Starting with this premise, here is a checklist to perform due diligence:  <!--more--> <\/p>\n<ul>\n<li id=\"level1\"><span class=\"black\">Is the product <strong>cancellable by the consumer<\/strong>?<\/span><\/li>\n<li id=\"level1\"><span class=\"black\">Do the cancellation provisions in the contract <strong>meet all the individual state and federal requirements<\/strong>, and is the cancellation process clearly communicated to the customer and carried out in practice?<\/span><\/li>\n<li id=\"level1\"><span class=\"black\">What is the <strong>A.M. Best rating<\/strong> of the Insurance carrier backing the program?<\/span><\/li>\n<li id=\"level1\"><span class=\"black\">For customer claims, what is the <strong>average hold time, call abandonment rate, availability of an adjustor\/claims representative,<\/strong> time of the average claims call, and percentage of claims paid?<\/span><\/li>\n<\/ul>\n<p>Compare the answers to these questions to industry standards, and set up quarterly random audits to ensure standards are met.\u00a0 In addition to \u201cconsumer friendly\u201d best practices, don\u2019t forget to review all of your individual pricing models.\u00a0 Make certain that they are:<\/p>\n<ul>\n<li id=\"level1\"><span class=\"black\"><strong>deemed to fair<\/strong> by any reasonable person;<\/span><\/li>\n<li id=\"level1\"><span class=\"black\"><strong>consistent with the policy in writing<\/strong>, and that any rate deviation is clearly defined:\u00a0 less coverage, longer term, etc. and not arbitrarily negotiated; and,<\/span><\/li>\n<li id=\"level1\"><span class=\"black\"><strong>actively reviewed by your legal department<\/strong>, ensuring guidelines are adhered to without exception.<\/span><\/li>\n<\/ul>\n<p>With almost 40 years innovating and administering consumer protection products,<strong> <a href=\"http:\/\/www.efgcompanies.com\/\" target=\"_blank\">EFG Companies<\/a> operates as a <a href=\"http:\/\/www.efgcompanies.com\/products\/administration-and-underwriting.aspx\" target=\"_blank\">100% administrator obligor<\/a> on all product programs, removing any contingent liability from its clients<\/strong>. EFG\u2019s almost 30-year uninterrupted relationship with Assurant Solutions and their affiliated insurance companies, all \u201cA\u201d rated A.M. Best insurance companies, sets EFG as Assurant\u2019s longest-standing Third Party Administration partner.<\/p>\n<p>As the only product provider with a <a href=\"http:\/\/www.efgcompanies.com\/media\/65497\/naf_certification_release_final.pdf\" target=\"_blank\">Consumer Credit Compliance Certified Specialist<\/a>\u00a0and a field team that is <a href=\"http:\/\/www.efgcompanies.com\/media\/52634\/afip_press_release_final_for_web.pdf\" target=\"_blank\">100% AFIP (Association of Finance &amp; Insurance Professionals) certified<\/a>, <strong>EFG has the unique ability to provide AFIP training and certification, and help dealers iron out their compliance strategy<\/strong>. EFG is also the only product provider to be <a href=\"http:\/\/www.efgcompanies.com\/media\/63261\/benchmark_portal_press_release_final.pdf\" target=\"_blank\">certified as a Center of Excellence<\/a> by Benchmark Portal \u2013 a customer service designation that less than 10% of companies achieve. In addition, EFG is the only product provider awarded the <a href=\"http:\/\/www.efgcompanies.com\/media\/55989\/ase_press_release_final_for_web.pdf\" target=\"_blank\">Automotive Service Excellence (ASE) Blue Seal of Excellence<\/a>, with EFG\u2019s claims adjusters averaging 15 years of experience.<\/p>\n<p>EFG ensures:<\/p>\n<ul>\n<li id=\"level1\"><strong><span class=\"black\">during business operations, 96% of all claims are paid within the hour;<\/span><\/strong><\/li>\n<li id=\"level1\"><strong><span class=\"black\">claims calls are answered, on average in 30 seconds; and,<\/span><\/strong><\/li>\n<li id=\"level1\"><strong><span class=\"black\">average handle times for each claim call is 3.5 minutes.<\/span><\/strong><\/li>\n<\/ul>\n<p>EFG also invests substantial resources to enhance the efficiency of its claims process, resulting in a seamless experience for both clients and customers. <strong>Many of the company\u2019s proprietary solutions are fully mechanized with secure online portals that allow clients to enroll customers and file claims in real time with no EFG intervention required.<\/strong> Examples include:<\/p>\n<ul>\n<li id=\"level1\"><span class=\"black\">full contract automation;<\/span><\/li>\n<li id=\"level1\"><span class=\"black\">online cancellation quoting and cancelling; and,<\/span><\/li>\n<li id=\"level1\"><span class=\"black\">EFG\u2019s parts wizard that identifies the highest quality parts from suppliers across the nation at the lowest price in real-time.<\/span><\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.efgcompanies.com\/about-efg\/contact-us.aspx\" target=\"_blank\">Contact EFG<\/a> today to learn how our administrative excellence drives compliance and profitability within the automotive financing space.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Contributing Author: Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies If you\u2019ve been paying attention to industry news, you probably know about the Federal Trade Commission once again [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[86,7],"tags":[155,173,87,317,90,14,69,313,315,109,13,212],"class_list":["post-803","post","type-post","status-publish","format-standard","hentry","category-compliance","category-fi","tag-afip","tag-ase","tag-cfpb","tag-compliance","tag-consumer-financial-protection-bureau","tag-consumer-protection-products","tag-efg","tag-efg-companies","tag-fi","tag-fi-products","tag-finance-insurance","tag-karen-klees"],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7hsqu-cX","jetpack-related-posts":[],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/posts\/803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/comments?post=803"}],"version-history":[{"count":6,"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/posts\/803\/revisions"}],"predecessor-version":[{"id":979,"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/posts\/803\/revisions\/979"}],"wp:attachment":[{"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/media?parent=803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/categories?post=803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/efgintelligence.com\/dealershipcorridor\/wp-json\/wp\/v2\/tags?post=803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}