The world of dealership compliance is often tricky. Sales staff are not always familiar with new laws or they forget the details. Violating laws and regulations can cost a dealership owner thousands of dollars. By law, every dealership must work with a compliance officer. To get the most out of this relationship, there are ways to work more effectively with the officer to use his skills to your advantage.
Invest in Training
Your dealership compliance officer is most effective if he is up to date on the latest laws, issues and concerns. Sending him to as many seminars, certification courses or other professional opportunities. The Association of Finance and Insurance Professionals (AFIP) offers regular compliance training.
Establish standard procedures
Ask the compliance officer to go over specific issues that your dealership encounters and discuss any potential problems. Include the Red Flags Rule, adverse action notices, OFAC checks on customers and credit score disclosure notices. Review your Identity Theft Protection Plan regularly. Work together to create policies and procedures that all staff members must follow and reference.
Have the compliance officer work closely with your staff
With current training, the officer becomes the resource for the latest complications in compliance laws. As your sales and F&I staff encounter issues, they have a reliable resource and you are protected from unexpected lawsuits. Train your staff to frequently talk with the officer about any uncertainties.
Check everything twice
Once your compliance policy is in action, review it regularly. Ask the officer to audit files on a regular basis. Once a year, hire a legal consultant to review your officer’s work. Vanguard Dealer Services is there to help you protect your business. We offer review and certification services, so contact us to learn more.