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COMPLIANCE ISSUES/WAYS TO PROTECT YOUR OPERATION NABD EAST COAST
ORLANDO, FL THOMAS B. HUDSON, PARTNER
ERIC L. JOHNSON, PARTNER NOVEMBER 3, 2016
Step #4
Know the federal and state rules that apply to your advertising, and know
what ads they regulate.
Step #5
Eliminate the difference in prices between cars you finance and those
you sell for cash.
Put your prices on your cars and don’t change the prices based on cash or
financed sales.
Step #6
Know the rules that apply when you sell your contracts to finance sources that charge an acquisition fee or buy your contracts at a discount – do not increase the cost of the car to cover
the fee or discount.
Step #7
Know the rules that apply to financing
repairs for your customers. Have a written policy for financing repairs,
and document the transaction correctly.
Step #8
Don’t create hidden finance charges. For example, don’t tell buyers that you “can’t get them financed” unless they
buy a service contract.
Step #11
Read the Truth in Lending Act, Regulation Z, the Equal Credit Opportunity Act and Regulation B, and the other federal and state laws and regulations that apply to
your business.
Step #12
Get compliance training for your dealership people who are responsible
for sales and financing.
Step #13
Regularly visit the websites of the Consumer Financial Protection Bureau, the Federal Trade Commission and your
state regulatory agencies.
www.consumerfinance.gov/
www.ftc.gov/
Step #14
Join your state’s IADA.
Join a twenty group.
Subscribe to industry publications that cover compliance developments.
Go shopping for free or nearly free compliance resources.
Step #15
Know what business you are in. If you think that you sell cars, and that you arrange for “lenders” to finance those cars by making “loans” to your customers, guess again!
Resources Go to www.ftc.gov/ Click on “Tips and Advice,” then on “Business
Center,” then on “Advertising and Marketing” You will find these publications: Advertising and Marketing Basics Online Advertising and Marketing Telemarketing Read Them!!!!!
More Resources
• State Auto Dealer Associations • State Independent Auto Dealer Associations • NADA • NIADA • State ADAs and IADAs • Vendors (but be very careful) • Spot Delivery • F&I Legal Desk Book
Contact Information: Thomas B. Hudson, Partner
Hudson Cook, LLP 7037 Ridge Road, Suite 300
Hanover, MD 21076 410.865.5411
Eric L. Johnson, Partner Hudson Cook, LLP
8524 South Western Avenue, Suite 114 Oklahoma City, OK 73139
405-602-3812 [email protected]