Establishing a compliance program
We are all worrying about how to increase sales, keep costs in line and hire the right people. Now we also have this extra step of F&I compliance. But don’t over-think, “How do I do all this and stay in business?” Try to keep things simple. Here are four steps you can take to establish an effective compliance program to help protect your dealership.
1. Name a compliance officer
The person you select should be an officer of the company. They would be responsible for the dealership’s overall risk management functions and monitoring these functions.
2. Conduct a risk assessment
You have to determine where the risks are before you can develop the required processes and procedures.
3. Develop a policy and procedure manual
The manual should be a guide for dealership expectations and how employees should adhere in their dealings with other employees, customers and lenders. Employees must acknowledge they have read and understand the processes in place. Have a signed form put in their employee folders.
4. Provide employee training
This not only should be mandatory for new hires but also include refresher training for established employees.
As with all programs, an effective follow up must be put in place. Review each manager and their job functions on a regular basis to ensure compliance. You may want to bring in an outside consultant once or twice a year to recheck your findings. Remember to inspect what you expect.
