There’s a new sheriff in town… and the deputies will have marching orders soon. The time to act is now. by David Robertson, MBA T he Democratic party now controls the White House and both houses of Congress, giving it nearly unbridled leverage to pursue its agenda. What does that mean for you? You can expect both the FTC and CFPB to be significantly more aggressive in both oversight and enforcement than during the last four years, particularly in the areas of vehicle sales and F&I practices. Top targets of dealer audits or action Based on the FTC’s The Auto Buyer Study: Lessons from In-Depth Consumer Interviews and Related Research and Buckle Up: Navigating Auto Sales and Financing, both published in July 2020, the following areas will be targets of scrutiny or intervention. Statements made by FTC Commissioners Rebecca Kelly Slaughter and Rohit Chopra in the matter of Bronx Honda reinforce their priority status. Biden recently named Slaughter to lead the FTC and nominated Chopra to head the CFPB. 1st Priority – Voluntary Protection Products (VPPs) In your store today, are these products being properly presented and disclosed? Do product prices align with their value? This is a major blip on the regulators’ radar screen. Solution The NADA/NAMAD/AIADA Voluntary Protection Products: A Model Dealership Policy is a comprehensive, easy-to-follow guide. Copies are available from NADA. Or email a request to Shannon.Robertson@afip.com with your postal address and I’ll send you a copy at no charge. The VPP policy sign achieves three objectives. 1st, it alerts the customer that the voluntary protection products have value, are optional, and are not required to purchase or lease a vehicle or obtain financing. 2nd, they remind the F&I practitioner of the standards imposed by the program. 3rd, they tell regulators that the dealer makes a proactive effort to ensure fair customer dealings. 2nd Priority – Take a Nonpublic Personal Information (NPI) Compliance Inventory Is a corporate compliance officer working in the dealership to oversee an Information Security Program drafted and implemented in accordance with the Safeguards Rule (effective May 23, 2003)? Is a corporate compliance officer working to oversee an Identity Theft Prevention Program drafted and implemented in accordance with the Red Flags Rule (effective Jan. 1, 2011) and approved by the Board of Directors? Solution If you answered “no” to either question, DealerAide NPI Compliance Suite can get you in compliance with the Safeguards Rule, Red Flags Rule and Disposal Rule efficiently and with minimal disruption in your operation. DealerAide is administered by Member Benefit Services, Inc., which operates under the AFIP umbrella. DealerAide provides modifiable templates, task-specific job descriptions with employee orientation, and signage – all supported by live customer service to help compliance officers configure the program to the specific needs of each facility. Program updates, including new hire orientation, are provided at no charge. DealerAide was most recently updated by Randy Henrick, Esq. 12

13 Publizr Home

You need flash player to view this online publication