As we approach the deadline for the FTC’s New C.A.R.S Rule, SecureClose wants to make sure we are ready to help good dealers get compliant and prove transparency. Due to the nature of this industry even ‘Good Dealers,” will have a tough time meeting all the requirements for the FTC’s new CARS rule without the right tools and procedures in place. For years now we have helped dealers prove what was said at closing during the purchase of a vehicle. Over the past years, requests for compliant closings have increased, due to the ease of filing complaints with regulatory agencies, state or federal. Does not matter today whether they are true or not, they don’t have to prove their case every time, if enough complaints are filed, that will be proof enough. It is almost impossible to make sure everything said during the close meets the regulatory scrutiny when audited. People are people “NOT ROBOTS” and can get easily sidetracked because of fatigue, not feeling well, or late-night closings at the end of the month. Mistakes happen and if you have been in the business, as long as I have, they happen more often than we like to admit. Incorrect verbalized disclosures, missed signatures on important disclosure documents, or worse on a RIC, is not what you want to happen when a customer files a complaint.
Now is not the time to “wing it” or worse have uncertified employees close their own deals, it may not be fair to ask certain employees to do so. For example, salespeople are prone to handle objections even if they do not know the answer, sometimes making up the response. Other employees may have other responsibilities they believe are more important and deadlines and just want to get the closings done. This can come back to bite the dealer when the consumer complains, especially if that employee is no longer with the dealership. We all know that never happens, we also know if the consumer finds out about the employee who closed the loan the complaint becomes deeper and wider as it progresses.
The time and effort it takes to defend your dealership when you know you are in the right can be exhausting and costly. You are not alone when you are with SecureClose. SecureClose partners with one of the industry’s most well-known compliance companies “Ignite Consulting Partners” as well as industry attorneys to make sure we keep up with the changing regularity environment.
