By Ken Hill, Managing Director, 700Credit
Is your dealership’s compliance program ready for a government audit? What must your dealership have in place for Red Flag, Adverse Action and RBPN?
Laws and regulations change rapidly, making it difficult to stay on top of your dealership's compliance obligations. And yet, the cost of shirking this responsibility is high; you really have no choice.
Ten years ago, compliance was nowhere near as detailed as it is today. Similarly, 10 years ago the complexity and usage of the DMS was nowhere near what it is today. So it makes sense that 10 years ago, DMS vendors forgot about developing features that make credit and compliance management easy.
But today, that has all changed. Solutions now exist that allow you, when you're in the middle of a deal, to instantly pull up the same information from within DMS platforms, eliminating the need to switch back and forth between applications. This ability greatly improves your workflow and saves you time in the process.
An integrated credit and compliance process improves workflow and helps to speed up the sales process, because the salesperson can stay right in the DMS throughout the entire purchasing process. The handoff to F&I also becomes more efficient, as all the data is already in the system once they make it to the finance office.
When searching for a platform, make sure it allows you to manage credit reporting and compliance from a single view. With new technology available, both single and multi-rooftop views are supported, and issues of concern can be highlighted for quick identification.
Things to look for when selecting fully operational DMS platform is one that automatically alerts you to Items such as Red Flag Alert status, OFAC Compliance, Adverse Action letter and Risk Based Pricing Notices.
By selecting a platform that utilizes state-of-the-art technology, your dealership will realize the benefits including: