Compliance Is Not Just A Thing

 

                By: Myril Shaw - Dealer Profit Services

Compliance is boring.  Compliance is a pain in the neck (or other body parts.)  Compliance is never an issue for me.  Compliance is just something people talk about.

All of those are true…until…a violation happens to you!

It couldn't happen – you say.  I know my customers.  We check everything.  We protect people's information.

Easy sentences…do you know if they are actually true?  Are you ready for the consequences if they aren't?

There are several areas where you could be or could suddenly become in violation of compliance rules and regulations:

• Are you adequately confirming and protecting personal, private information?

      o Are there Deal Jackets with Credit Apps laying around unprotected?

      o Are you confirming the identity of the people you are dealing with?

• What about cash?

      o Are you carefully watching cash transactions?

      o Are you reporting cash transactions over $10,000 and are you checking on the buyers for cash transactions below that level?

There are some key steps you can take to avoid the following penalties:

• Red Flags (related to Identity Theft)

      o Up to $3,500 per violation in civil fines

      o Up to $2,500 per infraction to the FTC

• Disposal (related to Identity Theft)

      o Up to $2,500 per independent violation

• OFAC (sales to prohibited entities or individuals)

      o Criminal penalties of up to $1,000,000 per violation and/or up to 20 years in jail

      o Civil penalties up to $55,000 per violation

• Safeguard (related to Identity Theft)

      o Penalties up to $42,530 per violation

• Patriot Act (related to money laundering)

      o Penalties not specified however, any violation will also be covered by one or more of the above

If you don't want these, then do the following:

• Appoint A Compliance Officer

      o Your Compliance Officer will understand, train on and enforce your documented compliance polices.

• Documents Your Policies

      o These are the policies that everyone is trained on; that your Compliance Officers enforces and makes sure that all employees commit to; that protect you from compliance violations

• Train Your Employees

      o Make sure they understand the rules

      o Don't leave Deal Jackets or other personal, private information laying around

      o Why something feels odd, check on it

• Protect Private Data

      o Cross shred what you don't need

      o Lock up what you do need

      o Private and personal needs to remain private and personal

Compliance is not really a mystery.  It is not legal mumbo-jumbo.  It is common sense and it is what you would want for yourself.  Take the time to make sure you are doing it right in your store.  

Doing compliance right protects your customers – it protects you – it ensures satisfaction everywhere.

Dealer Profit Services - Driving Profit Through Fun and Inspiration 

 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 best Finance Solutions Provider and the only one to take your customer to Fun and Inspiration with a Free and Idyllic lifestyle through F&I, thus driving industry-leading levels of F&I profit, 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.