Dealership finance and insurance managers rely on a network of outside partners to ensure compliance with new regulations and to stay informed about changes that may be coming. Among those partners: F&I trainers, dealership auditors and software providers.
Eric Schmitz, senior vice president of compliance at KPA Services, of Lafayette, Colo., said his company's 350 dealership-focused employees constantly monitor and research regulations.
For example, he and his staff monitor state and federal government websites that list and discuss current, pending and proposed regulations. They also draw on partnerships with law firms around the country that represent dealers and dealerships to help KPA design, reinforce and update compliance training programs for dealerships.
"In the F&I department, your biggest risk is probably a lawsuit," said Schmitz. "Behind lawsuits, you could get a government action against you."
While it makes good legal sense for dealerships to retrain employees whenever laws change or new laws are implemented, that's not always practical, Schmitz said.
Most dealers provide compliance updates for their staffs during regularly scheduled online training, Schmitz said.
KPA, a provider of compliance audit software, services and training to dealerships and other businesses, emails regulation-change notices to affected dealers. The company's field staff also will train managers, if necessary, during audits.