The regulatory environment is constantly changing. To help you stay on top of compliance, we provide the latest industry news, directives and thought as a resource for you, in one place. Stay informed, and avoid the compliance potholes.
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03.01.08 |
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09.19.07 |
Mickeys, Straws and SARs - Federally insured financial institutions are required to file a Suspicious Activity Report (SAR) whenever a fraudulent transaction is presented to the institution. So, if a bank or credit union receives a credit application with falsified applicant information (even though you didn't know it was false) from your dealership, it must file a SAR naming your dealership as the party perpetrating the fraud. What's worse, it can't tell you about it, and if you have enough SARs filed against your dealership, you could be the target of an FBI raid. Gil Van Over explains how to protect your dealership. Dealer Magazine |
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09.18.07 |
GAP...Do it Right! - The Truth-in-Lending Act (TILA) is all about doing it right. A creditor must prepare accurate disclosures and provide them to consumers exactly as required by TILA and its implementing rule, Regulation Z, in order to avoid regulatory fines or worse, being sued and losing. Although TILA is nothing new, many dealers are still getting it wrong because the requirements, though simple, are very specific. Get the scoop from Patricia Covington and do it right! World of Special Finance |
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08.31.07 |
Identifying the Enemy Within - Identity theft has been cited as the fastest-growing crime in the United States, which doesn't bode well for automotive dealerships. Because of the nature and amount of nonpublic, personal information dealership employees collect in the course of delivering a vehicle, dealerships are a target for identity thieves. But what happens when that thief happens to be on the payroll? F&I Management & Technology |
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08.15.07 |
Are you Prepared for the Red Flag Ruling? - Now that you've learned about the new Red Flag rules, find out how to best prepare your dealership to comply with the minimal amount of effort (and impact to your bottom line). Let's face it, the Red Flag ruling will affect your dealership, it's just a matter of when. World of Special Finance |
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08.14.07 |
Identity Theft Red Flags: It Ain’t Easy Being a Dealer - In 2006, 8.4 million Americans were victimized by identity fraud and millions of dollars were lost by dealerships like yours. In an effort to combat the fastest growing white collar crime, the Federal Trade Commission (FTC) will issue new rules. Compli's Jim Lawrence explains the key requirements for the new rules, consequences for dealers who fail to comply and when the FTC is expected to release the hounds, er, rules. Funding Management Weekly |
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08.03.07 |
Toyota of El Cajon Receives 2006 President's Award - California dealership Toyota of EI Cajon was recently named recipient of the 2006 Toyota Motor Sales President's Award, marking the 13th year the organization has received the award.
For 21 years, Toyota Motor Sales has recognized a select group of its finest dealerships that have demonstrated a commitment to maintaining Toyota's high standards for customer satisfaction, excel in delivering great products and provide stellar customer care in all areas of dealership operations.
Toyota of EI Cajon has also been recognized for ongoing community support as it has pledged $25,000 to the Scripps Memorial Hospital La Jolla to be used for innovative surgical equipment.
Toyota of El Cajon has been a customer of Compli since 2006, and we are very proud to be associated with such an accomplished and charitable organization.
To learn more, visit Time Magazine or go to www.toyotaofelcajon.com.
Time Magazine |
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07.31.07 |
Creating a Pay Plan That Impacts Sales, Compliance
- The retail automotive industry has seen countless changes in recent years, and some dealerships are having a tough time keeping up. But failing to update pay plans to meet compliance standards and market demands can hurt your staff and your dealership. Learn how to create a pay plan that is not only compliant, but also motivates your staff and creates a positive, and more productive environment. F&I Management & Technology |
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07.19.07 |
Organizational Risk — Is it Feast or Famine? (Part 2) - Part 1 of this article discussed the importance of having an effective compliance program in every dealership. Part 2 outlines the goals and objectives of that effective compliance program, as well as methods of identifying key areas of risk at your dealership. Wayne Fortier asks the questions to provide you with the answers you need to get started and the guidance to help you stay on the road to compliance. Wayne Fortier, Dixon Hughes PLLC |
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07.19.07 |
“Adverse Action” Will Have an Adverse Effect on Dealers Who Don’t Take Action - The latest effort by the feds to address unfair credit practices is perceived by most dealers as a costly business process and a potential threat to the overall health of their dealership. Relying upon finance partners in the past, dealers are now directly responsible for issuing adverse action notices in every deal they reject. Do you know what kind of liability is growing unchecked on your sales floor? The new NADA Dealer Guide to AA notices is a valuable tool to help you save on overhead and minimize the threat of litigation. James E. Lawrence, Compli |
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07.19.07 |
Mysteries of the Automobile Business - Many mysteries exist in the auto dealer business, but one that continues to remain unclear is sub-prime/special finance. The mystery isn't necessarily "what is it" or "how does it work" but rather, "is it right for my dealership," or even better "can I afford not to offer it?" This mystery can be unveiled by simply asking the question "what business are you in?" Hint: it's not the car or people business. Bob Blackburn explains his thinking in this revealing article. World of Special Finance |
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06.28.07 |
Organization Risk - Is it Feast or Famine (Part 1) - Ask yourself a few simple questions. Are you comfortable with how your organization manages and monitors your business practices? Do you know the risks associated with your current business practices? What would happen to you and your organization if you were to have your day in court? Would you be ready? In Part 1 of this series, Wayne Fortier of Dixon-Hughes PLLC discusses the government regulations which mandate the need for “effective compliance program” and why it’s imperative that you have the right one in place at your dealership. Wayne Fortier, Dixon Hughes PLLC |
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06.04.07 |
Blog Rules for Dealer Communications - Many dealers have chosen e-newsletters to connect with customers, but blogs can offer even bigger benefits when done right. CIMA Systems explains the rules for getting the most out of interactive marketing to bring customers into your dealership. iMedia Connection |
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06.01.07 |
Why Comply? A Chilly Lesson - A record fine of $500,000, imposed on Lithia Motors' nine stores in Alaska, underlines the need for dealers to tighten regulatory compliance measures in every department of their stores. Lithia Motors was also ordered to pay $200 refunds to several thousand Alaskans who were charged document preparation fees that the state objected to. The case shows that every franchised or independent dealer, no matter how big or small is fair game for regulators. Could you be next? Ward's Dealer Business |
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05.31.07 |
Marketing to Women the Ask Patty Way - Studies show that 85% of automotive buying decisions are influenced by women, which helps to explain the popularity of askpatty.com. Ask Patty creators recently talked to F&I Magazine about being a forum for what women want, as well as a turnkey marketing program to make your dealership female friendly. They also talk about their upcoming F&I plans. F&I Management & Technology |
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05.15.07 |
Of Auto Dealers and Icebergs - Two marketing gurus compare the demise of the Titanic to the increasingly perilous auto dealership industry. After the comparison is made, the article contains helpful tips for capturing more market share and how to change your dealership on multiple levels in order to stay in business for the long haul. Branding Strategy Insider |
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05.01.07 |
2007's Top Twenty Legal Trends for Automobile Dealers - Eric Chase of Bressler, Amery of Ross outlines the legal issues that will most likely have a serious impact on the majority of automobile dealers in 2007. Gain insight into the challenges you may already be facing, as well as the issues looming in the near future. Eric Chase for Dealers Edge |
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04.30.07 |
The Compliance Side of Nonprime Finance - The growth of special finance has provided a win-win situation for dealers, finance companies and customers. When it comes to compliance, there really is no difference between prime and subprime, as the rules are the same for both. However, the risks and exposures for non-compliance are not, as they increase dramatically when it comes to subprime lending. F&I Management & Technology |
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04.23.07 |
Online Priority: Dealership, Brand or Price? - Here's the truth that no automotive dealer likes to admit: the car has become a commodity. As to what drives sales, no matter what anyone says to the contrary, cost is king. But that doesn't mean that brand or the dealership isn't important. Find out how to put your best foot, er wheel, forward for all three. iMedia Connection |
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04.23.07 |
Auto dealer to pay $2.3M settlement - According to the U.S. Equal Employment Opportunity Commission, Jeff Wyler, owner of one of the largest car dealerships in southwest Ohio and northern Kentucky, has agreed to pay $2.3 million to 39 women who claimed sex discrimination because they were not hired for sales positions. The settlement also requires Wyler to provide anti-discrimination training to managers and supervisors, and to provide a written explanation if a man rather than a woman is hired for a sales position for the next three years. Dayton Daily News |
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04.15.07 |
F&I Pacesetters - Six regional dealers are in the running for Dealer of the Year, and the winner will be chosen at the NADA convention next February. More important than winning the prize, however, is that these dealers made strong statements about the value of customers, training and legal compliance, which set them apart from the competition, both in the opinion of NADA and their customers. F&I Management & Technology |
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03.31.07 |
Risky Business: Don't Let Technology Be Your Undoing - Technology may be driving dealership innovation, but it's also increasing risks and liabilities when outside vendors are allowed access to a dealership's sensitive data. Federal laws, such as the Gramm-Leach-Bliley Act, created The Privacy Rule and The Safeguards Rule to ensure that consumers' private information is kept confidential and secure. Various states have also enacted legislation that provide for further protection of personal information. Do you know the Rules and is your dealership compliant? F&I Management & Technology |
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03.27.07 |
Cut High Costs of Employee Hiring and Turnover - NADA research indicates that the average cost of turnover at auto dealerships is $25,000 to $40,000 per salesperson. To address this need, Compli and Art Niemann & Co. (ANCO) have joined forces to help dealers dramatically improve the quality of new hires; reduce or eliminate the paperwork related to hiring, retaining, and separating from employees; and slash the costs of employee turnover. F&I Management & Technology |
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03.19.07 |
Online Auto Marketing Set to Shift Gears - While researching the future of online automotive sales and advertising for The Kelsey Group, Mitch Ratcliffe learned that Detroit's woes will not be the only reason for traditional dealership consolidation in the coming years. More than 70% of buyers begin their searches online and know more today about the cars and sales process, including aftermarket products, before stepping foot in a dealership. Referral fees paid to search engines that deliver qualified customers have become a necessary expense. Ultimately, as traditional dealers find real competition from virtual dealerships, offering specialized services may help some dealers stay afloat. ZDNet.com |
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03.16.07 |
Don't Get Stuck With Window Stickers - Aside from the marketing stickers, there are three very important window stickers that every new and used car is required to have. New cars must have the Monroney sticker and Addendum sticker. Used cars take a different set of stickers, including the FTC Used Car Buyer's Guide. Read on to learn what you need to know about the specific requirements of the laws and the risks associated with non-compliance. Find out how to ensure your compliance program keeps your exposure to a minimum. F&I Management & Technology |
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03.05.07 |
"Compli Lets Me Sleep at Night" - Carl Christoferson, CFO of the Kuni Automotive Group, which employs 850 people across four states, recently told Automotive Digest why Kuni chose Compli's compliance management system to help them stay in compliance.
"As a CPA, I'm well aware of the paperwork that is produced in just about every office of our dealerships. Compli's web-based system was really attractive because it would enable us to replace the tons of paperwork with an easy-to-use electronic system. And, adopting Compli in our stores lets me, as CFO, sleep at night, because there are so many regulations we dealers have to follow and comply with."
Another crucial function provided by Compli is "…it monitors all functions. There are so many things to watch for outside of taxation and legal issues– things such as discrimination, safety, harassment, and advertising. Compli is not only web-based, but it's there 24/7. It's been well worth it for us." Automotive Digest |
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03.03.07 |
San Rafael Auto Dealer Failed to Notify Workers - A 23-year-old San Rafael auto dealership which recently closed its doors and laid off 109 workers, failed to file advance notice of layoffs as required by the Worker Adjustment and Retraining Notification law (WARN). The regulation requires employers of more than 75 workers to notify them of a pending layoff 60 days in advance and to record that notification with the state. Penalties of up to $500 per worker per day, plus back-pay and medical expenses incurred by employees, can add up fast.
Marin Independent Journal |
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03.01.07 |
Avoid Becoming a Lightning Rod - These days, auto retailers find themselves caught between two colliding trends: the automakers are seeking ways to drastically trim costs while regulators are gaining momentum, both of which pose serious challenges. Raj Sundaram of DealerTrack, Inc. offers strategies and processes for coping with OEM retrenchment and increased regulatory pressure by leveraging compliance technology for competitive advantage.
Automotive Digest |
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02.03.07 |
Auto Dealer Glut Hurts U.S. Makes - The number of auto dealers selling American cars is shrinking by 3 to 4 percent a year, but not nearly fast enough as about two-thirds of the 15,000+ dealers who sell Detroit-made cars and trucks need to get out of the business in order to create a healthy dealer body, said top industry analyst Stephen Girsky. Ultimately, automakers prefer a smaller number of large, modernized dealerships over many smaller, marginally profitable dealerships. Protect your dealership by managing compliance to minimize liability and protect profits.
The Detroit News |
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01.31.07 |
7 Ways to Legally Shield Your Dealership - As a compliance auditor, Joe Bartolone often finds himself saying "I've got bad news and more bad news - where do you want me to start?" After conducting compliance reviews at hundreds of dealerships across the country and documenting numerous potential compliance issues, Joe and his fellow auditors at gvo3 & Associates are sharing compliance "best practices" to help your dealership enjoy greater success. F&I Management & Technology |
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01.31.07 |
Finding, Hiring and Keeping Winners - Finding a winning F&I manager takes a good selection process, ongoing training and a pay plan that reinforces goals and objectives. If you don't have the right person in this key position, customer satisfaction, retail sales, F&I product sales and dealership net profit all suffer, so finding and hiring a true F&I professional should be the goal of every dealer. Find out how to implement a quality process, and where to start looking for the right person for your dealership. F&I Management & Technology |
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01.23.07 |
Dealership to Pay $375,000 to Settle Harassment Case - With the abundance of industry-specific compliance regulations to track, sometimes dealers overlook compliance with regulations that span all industries. Often, violating these regulations results in steep penalties, as a Lexus dealership in California recently found out. The dealership will pay $375,000 to settle charges of sexual harassment brought by the Equal Employment Opportunity Commission on behalf of five former female employees of the dealership. Is there harassment at your dealership? San Jose Mercury News |
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01.02.07 |
North Carolina Attorney General Fines Dealer - You're only as compliant as your employees, a lesson The Alan Vester family of car dealerships learned the hard way. Vester is obligated to pay North Carolina's attorney general $100,000 and to reform certain sales and business practices regarding advertising and financing. Although Vester contends the dealership had taken steps to improve compliance and remove certain "former employees acting outside the scope of their authority in violation of the policies of the Vester Dealerships," it still must pay. The article shares the reformations ordered by the attorney general – find out if your dealership practicing good compliance.
F&I Management & Technology |
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12.30.06 |
Will Government Oversight Change the Way We Do Business? - The attention paid to finance and insurance by government regulators speaks to the tremendous relevance of the department, and this trend could only mean more compliance issues and more government oversight. The good news is that regulating the F&I department only serves to legitimize the services it offers to the customer, and further the trend toward financing and leasing. It also provides a specific direction, as F&I continues to increase at the automobile dealership. F&I Management & Technology |
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12.26.06 |
Alaska Accuses Lithia of Illegal Fees - Doing business in multiple states can be a difficult, and expensive, proposition. The Alaska Department of Law has accused Lithia Motors, Inc. of illegally charging fees to prepare documents for buyers and failing to disclose accident and repair information on trade-in cars it sells. If the settlement is approved by the court, Lithia will pay a $500,000 civil penalty and refund $200 each to possibly thousands of buyers who purchased cars from nine Lithia dealerships. Alaska law prohibits adding on additional fees above a car's advertised price. Do you understand the laws of every state in which you do business? Mail Tribune |
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12.12.06 |
Lawmakers To Pursue Disclosure of Insurance-Totaled Vehicles - Finally, lawmakers are attempting to pass legislation to help auto dealers rather than making their business more difficult. Hoping to provide dealerships with better tools to reduce title fraud and title washing on insurance-totaled vehicles, representatives seek to pass total-loss disclosure legislation when the new Congress convenes in January. For more details on the proposed legislation, read on. F&I Management & Technology |
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12.11.06 |
Don't Become Extinct! - There is one and only one constant in business…change. In the car business, change is occurring at exponential rates. Dealers today must be knowledgeable and reactive to the changes in market demographics, the technology of systems and the Internet, legal and compliance issues, financing, market trends, etc. Regardless of size, dealers must move quickly and directly to take advantage of these changes to be successful. The difference between success and failure is more than a Christmas bonus for the employees – it's having a record year, or closing your doors forever. World of Special Finance |
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12.01.06 |
Crafting a Buy/Sell Agreement to Avoid Litigation - Most buyers believe the difficult part of purchasing a vehicle is negotiating the purchase price. But in reality, a myriad of issues must still be negotiated and finalized in a well-structured "buy/sell agreement." The failure of the buyer and the seller to properly address the issues that may arise after the execution of a buy/sell agreement can result in disputes between the parties and, possibly, litigation. This article discusses the various issues that should be attended to early on in the buy/sell process. Dealer Magazine |
