gilbert l van over iii, u.b.a. september 12, 2012
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Compliance Initiatives That Help Sell Product. Gilbert L Van Over III, U.B.A. September 12, 2012. My Lawyer Made Me Do This. Nothing stated by or written from gvo3 & Associates , its employees or agents is intended to be legal advice nor should it be construed as legal - PowerPoint PPT PresentationTRANSCRIPT
Gilbert L Van Over III, U.B.A.
September 12, 2012
Compliance Initiatives That Help Sell Product
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Nothing stated by or written from gvo3 & Associates, its employees or agents is intended to be legal advice nor should it be construed as legal
advice. All legal questions should be raised with your attorney.
My Lawyer Made Me Do This
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Expert WitnessBest rate
Payment packing Stuffing Etch
Bank Fraud Rescission
FTC Used Car Rule
Payment packing Best rate Negative equity
Reg M disclosures Falsified income Bait & Switch Credit inquiries
Backdating
RICO Deceptive practices Blanking contracts TILA disclosures Spot delivery
Straw purchases
Safeguarding information
Identity Theft
Improper repossession
Etch disclosure
Bank Fraud Straw purchase
False down payment False income Power booking
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Strike The Right Balance
Profit$
&
Compliance
are not
mutually exclusive
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Great Wall
Auto Dealership Perceptions of Likelihood of Risk of Prosecution
There are certain moments in life when you know that the pain will soon begin…
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What Has Your AG Published?
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Hungry Media
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1940 GM Conditional Sales Contract
Contract and title was extent of deal file
Why Are Dealers Under Attack?
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You – Compliance Cop?
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Exploding Compliance Issues
Disparate Impact
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Focus on product sales in F&I, not reserve Write every deal at the buy rate, or Have a standard yield spread premium and
stick to it Pay plan = no commission for reserve
Disparate Impact
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Exploding Compliance Issues
Deceptive$ales Practices
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Unfair and Deceptive PracticesStatute Definition
Unfair methods of competition, unconscionable acts or practices,
and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby
declared unlawful.
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If it appears confusing, it is
probably deceptive
Unfair and Deceptive PracticesPractical Definition
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IssuePayment Packing
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Payment PackingRegulator’s Perspective
“Payment packing is the deceptive practice of misrepresenting monthly payments to consumers during auto sales and lease negotiation in order to facilitate the
sale of automobile related products and services.”
ResolutionNational Association of Attorneys General
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OK to include products in payment quotes Must have a consistent methodology Helps avoid payment packing,
discriminatory pricing, disparate impact
Desking
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IssueInadequate Product Sales Documentation
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SolutionProper Menu Execution
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Memorialize Vehicle Sale◦ Purchase price◦ Down payment, trade, rebate◦ Amount financed◦ Term◦ APR◦ Base payment
Disclosures◦ Products are optional◦ Can be purchased separately◦ Not required to obtain financing◦ Does not affect interest rate◦ Customer signature next to base and
final payments
SolutionMenu Four-Square
Sell Products Every available product offered to every
customer Disclose product price Disclose new monthly payment Can show multiple term options One of term options must be consistent
as base payment term
Paper Trail Products selected on menu consistent with
products purchased Premiums consistent on menu, RISC, EF APR must be consistent between menu and
RISC Periodically validate base payments New menu on recontract
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Exploding Compliance Issues
Identity Theft
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You could end up here
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Or here
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