Having a documented process in place can help dealers avoid expensive consequences.
At the Automotive News Retail Forum’s F&I panel, Matt Woods, director of field operations at Service Group, showed the audience a photo of a filing cabinet stuffed with customer’s personal documents -- paperwork that dealership personnel was supposed to send to customers but never did.
Dealerships are supposed to protect customers’ nonpublic, personal information, but in some cases, that responsibility falls through the cracks. If dealers looked at the responsibility in terms of legal fines, they may approach it a little differently.
“If there’s one $40,000 fine in that filing cabinet due to noncompliance, OK, so it’s a $40,000 fine,” Woods said. “What if there’s six $40,000 fines? That’s $240,000. Ask yourself this question: How long does it take your dealership to net $240,000?”
With or without the Consumer Financial Protection Bureau, an issue like this will catch the attention of regulators. Designing and following a process to follow with every customer pays off.