Horseshoes, Hand Grenades and COMPLIANCE??? Good Faith Matters In Meeting Compliance Requirements

By Myril Shaw - Dealer Profit Services

Compliance.  No one wants to talk about it.  It is that boring topic – just a bunch of useless rules, regulations, and paperwork – until you get on the wrong side of the law.

How does that happen?  You inadvertently allow someone to become a victim of identity theft – or you sell to an identity thief.  You don't check closely enough and suddenly you have sold a boat to someone on the government's drug or terror watch list.  Maybe you get caught up in a money-laundering scheme.

Do these things happen often?  Absolutely not.  They only need to happen to you once.

Selling to someone on the watch list could cost you up to $1,000,000.00 and up to 20 years in prison – and cash transactions count just like finance transactions do.  Failure to properly dispose of Consumer Credit applications could cost you $2,500.00 per incident.  Just over $42,000 per incident is the potential cost for the improper storage of personally identifiable information.  The list goes on and frequently the infractions compound.

So – it does not take repeated sloppiness (or even simple lack of knowledge) for compliance violations to get expensive, or even put you out of business – or in jail.  One event can do it.

All of that is the bad news.  Compliance is no place to be complacent.  That said, the government does get credit for good faith efforts to comply – even if mistakes are made.

Where does a good faith effort start?  There are three key steps to demonstrating a desire, willingness and effort to be compliant.

1)    Five Compliance Process and Procedures  Manuals must be printed, bound, executed by a Compliance Officer and be on display – the five manuals are Red Flags; Disposal; OFAC; Safeguard; and, USA Patriot Act.

2)    A recurring training program for all management and everyone who deals with private, personally identifiable information;

3)    A trained Compliance Officer who is familiar with the rules, the policy and procedure manuals and who will sign the manuals and ensure best compliance efforts.

Compliance is not fun – it is more fun than any alternative.  Demonstrate good faith in compliance and save yourself a whole lot of potential trouble.

Dealer Profit Services

Dealer Profit Services, LLC can help you achieve F&I excellence - no matter where you are in the development and/or maturity of your store or stores F&I success model.  As the industry's only Finance Solutions Provider, Dealer Profit Services can and will equip you with what you need to take that next step in your F&I success - regardless of what that next step might be.  Whether you want someone to help you take over take over your F&I and with our experienced personnel just help you drive profit to your store, provide help to you some of the time, need some quick advice or just provide F&I Training/Consulting, we are here to help you.  If you are not fully equipped with all of your Compliance Manuals and Training, Dealer Profit Services can do that too.  Contact us anytime at info@dealerprofit.com or give us a call at (470) 326-0966.