CFPB Compliance
for Auto Dealers
With the formation of the CFPB, lending organizations of all stripes have come under increased scrutiny. The CFPB was established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Its goal is to help consumer finance markets work by making rules more effective, by consistently enforcing those rules, and by giving consumers more control over their economic lives.
CFPB Enforcement Overview – What Your Dealership Needs to Know
The Consumer Financial Protection Bureau (CFPB) is in overdrive, pushing lenders and their service providers to implement Compliance Management Systems (CMS). This means all dealerships fall directly into the crosshairs of the CFPB based on their financing capabilities and resources.
CFPB & Dealerships
Dealerships are feeling the pressure from banking partners to adopt the same best practices required by the CFPB. Your dealership is expected to understand the rules and programs outlined by the CFPB. It is vital that you know what a CMS is, how to implement one, or how to make what you are already doing today meet the new standards.
Checklist
Dealership Compliance Checklist
If the CFPB, FTC, DOL, OSHA or another agency shows up at your door, are your prepared?
On Demand Webinar
CFPB Enforcement Overview
Learn how CFPB guidelines affect your dealership, discussing what a CMS is, along with recommended program components. We’ll cover what the CFPB expects from your CMS and give you some best practices for implementation.
Board of Directors & Management Oversight
Your board of directors and senior management should take an
active role in your compliance efforts. This sets the tone at the top
and defines compliance expectations for the company as well
as its service providers. If management cares about compliance,
everybody else will (or at least should) care about it too.
By setting this example, leadership should appoint a compliance
champion, an individual dedicated to overseeing the compliance
mandates the board establishes. Senior management should also
create the compliance structure into which operational policies,
procedures and standards are placed. They must also proactively
allocate resources to compliance, as well as review periodic reports
and recommend course correction on compliance matters.
How Compli Helps:
Make oversight easy for your Board and management team by automating your compliance program initiatives, engaging workforce communication and producing regulatory reporting.
On Demand Webinar
Board of Directors Oversight
Join us to discuss the critical role your Board of Directors and Management play within your Compliance Management System. Learn the requirements for high-level executives as well as best practices for communication within your organization.
Developing a Compliance Program
Your compliance program is the nuts and bolts of a CMS – where the heavy lifting occurs and the easiest place for things to fall through the cracks. Administered by the compliance champion, the program includes approved written policies and procedures, training, monitoring and corrective action. It should give accurate information to help make informed decisions about the organization’s ongoing compliance posture and activities.
How Compli Helps:
Automating all of your workforce and compliance activities, communications, trainings and business processes in Compli ensures consistency and peace of mind.
Consumer Complaint Response
Even the best businesses receive customer complaints. From a
compliance perspective, complaints give valuable insight into potential issues. As such, they draw the attention of regulators. A consumer complaint management program is the third element of a CMS. It helps log, track, investigate and resolve complaints in a timely manner. The compliance champion should analyze complaint data to identify and understand underlying issues and business risks.
Contrary to original thought, you don’t have to monitor every possible source of complaint (Facebook, Twitter…etc). Complaint management has become business critical and organizations need to properly protect themselves.
How Compli Helps:
Compli has partnered with the experts to give you a repeatable
and auditable complaint response system that helps you collect
complaints and feed them into your internal response processes.
Compliance Audit
the CFPB recommends an objective audit of a company’s operations to ensure compliance with legal requirements, as well as internal policies and procedures. The word “audit” may sound scary, but it isn’t. Your organization’s personnel may conduct an audit; however, they must be independent to the functions being audited. This provides objectivity and eliminates conflicting self-interest.
The audit function can start small and build over time. Start by
manually examining a random sample of 10 or 20 transactions each month to make sure all internal processes are being followed and the paperwork is complete. If it’s not complete or a problem is discovered, it may be time to teach or retrain employees. A CMS can streamline the audit process and provide ongoing assurance and validation that obligations are being met.
How Compli Helps:
Compli’s compliance intelligence provides detailed activity insight by analyzing all initiatives and regulatory data using centralized reporting. These reports help you proactively spot issues and provide proof to auditors and regulators that your compliance programs is operational and effective.
Auto Dealer Compliance Resources
Here are our most recent tools to keep you cool, calm and compliant.
