On the latest episode of our Smart Compliance Podcast, George Kurisky stopped by, and boy did we cover a lot of ground! Starting off with the pros and cons of video taping F&I transactions in your dealership. Being based in Houston, he’s of course got a ton of knowledge to share about the effects that giant storms has on dealerships. And last but not least, the compliance issues that keep him up at night. It was an interesting conversation. Listen in…
More of a reader than a listener? Here are some notable highlights:
On videotaping F&I transactions:
Well, to your earlier point, it is a topic of much conversation and there seem to be two camps. The kind of baseline level is that your video or audio recording of transactions are only as beneficial to you as the training of your team members. Because the recordings can be used as both a sword and a shield. If you routinely engage in the best practices and your training and compliance programs are firmly in place, then all of your recorded actions will reflect that. If they’re maybe not quite so good or there are kinks in the system, if you will, they can be your worst enemy because they perpetuate for all time or for at least the statute of limitations, in many instances, the bad parts of the transaction, which may or may not be actionable by consumers.
On the effects on Hurricane Harvey:
Well, a very good question, obviously question that hits very close to home for us here in the Gulf South and particularly in Houston. And needless to say hurricane Harvey made everything wet, made everything very wet. It shut down most of the city for at least a week and some parts of the city and the metro area are still not fully open for business. Hurricane Harvey damaged approximately 500,000 vehicles in the Houston area alone and as many as a million vehicles in the storms total area. Which extended down the Gulf Coast to Corpus Christi on the Texas Gulf Coast and east into Louisiana and north of Houston towards the country as well.
The cost of licensed cars lost in the storm as opposed to those waiting on dealer lots is estimated between 2.7 and 4.9 billion dollars. And based on 2017 Carfax research, the estimate is about half of those vehicles will end up back in the market, which is a daunting statistic given the difficulties and problems that accompany flooded vehicles.
What keeps George up at night:
The biggest issues that we’re seeing right now are employment compliance issues, we’re dealing with a lot of handicapped access and related issues where stores are required to do retrofits or refits and upgrades to their physical premises. We are seeing issues with sales practices. Some of the items that we address with regard to recording transactions, so compliance and training of your dealer personnel on the sales side. Then we’re also seeing issues with FTC and advertising compliance on a national level, which requires not insubstantial input.
Video Recording F&I Transactions?
Videotaping F&I transactions is a growing trend. But will it be the shield that protects you from a frivolous lawsuit or the sword that stabs you in the back if you’re sued?