E-NEWSLETTER

By Michael A. Benoit

After sitting through three roundtables’ worth of tired anecdotes from consumer advocates, the magazine’s legal expert hopes the FTC will keep its word and rely on empirical data before instituting new regulations.

Tags: CFPB, Compliance, Consumer Financial Protection Bureau, LEGAL, legislation

By Tom Hudson

Before you roll your next customer, you may want to read what the magazine’s resident legal wiz has to say about doc fees and how they can be defended in court.

Tags: documentation, financial legislation, LEGAL, TILA, Truth in Lending Act

By Michael A. Benoit

Do you know who your regulator is? The answer may not be as clear-cut as you think. The magazine’s legal wiz weighs in.

Tags: CFPB, Consumer Financial Protection Bureau, Federal Trade Commission, LEGAL, legislation

By Tom Hudson

The magazine’s legal wiz shares a textbook case on what not to do when spot delivering a vehicle.

Tags: Compliance, Fair Credit Reporting Act, Federal Trade Commission, LEGAL

By Tom Hudson

The leadership may still be up for grabs at the CFPB, but the newly formed consumer watchdog agency will hit the ground running on July 21.

Tags: CFPB, Compliance, Consumer Financial Protection Bureau, finance, LEGAL

By Tom Hudson

Thanks in part to recycled anecdotes from consumer advocates, the industry fared better than expected at the FTC’s first roundtable discussion.

Tags: Compliance, Federal Trade Commission, LEGAL

By Michael Benoit

The magazine’s legal wiz questions how easily the Federal Trade Commission can shift gears from enforcement body to policy maker.

Tags: Dodd-Frank Act, Federal Trade Commission, LEGAL, payment packing, spot delivery

By Michael Benoit

Can you raise the price of a vehicle to cover a high bank fee? Get that answer and more from the magazine’s legal expert.

Tags: Federal Trade Commission, LEGAL, Michael Benoit, Truth in Lending Act

By Michael Benoit

The magazine’s legal columnist cites two recent cases to provide dealer guidance on the FCRA’s ‘truncation’ requirement.

Tags: Compliance, credit, Fair and Accurate Credit Transactions Act of 2003, Fair Credit Reporting Act, LEGAL

By Tom Hudson

Most legal predicaments dealers find themselves in could have been averted if they'd only connected the dots. The magazine's legal wiz weighs in.

Tags: Compliance, LEGAL

By Michael Benoit

Washington is working overtime these days, so expect 2010 to be a bumpy ride on the regulatory front.

Tags: Chrysler, Fair and Accurate Credit Transactions Act of 2003, Federal Reserve, Federal Trade Commission, General Motors, LEGAL, Michael Benoit, risk-based pricing rule

By Michael Benoit

One amendment down, many more to go as automotive dealers face potentially disruptive new regulations.

Tags: Consumer Financial Protection Bureau, LEGAL, Michael Benoit, NADA

By Michael Benoit

There are always two sides to any story and this business always benefits from a little intellectual tug of war. That’s why I’ve invited the Center for Responsible Lending’s Josh Frank and Delvin Davis to share the center’s views on HR 2309.

Tags: Federal Trade Commission, HR 2309, LEGAL, Michael Benoit

By Michael Benoit

Washington sure can react to a crisis, but the real question is, “How effectively can Washington react to a crisis?” Apparently not well for you, or so pending legislation on Capitol Hill would have us believe.

Tags: LEGAL, legislation, Michael Benoit

By Michael Benoit

On May 12, Congress held a hearing on a bill that would give the Federal Trade Commission broad new powers to regulate automobile dealers. The bill, H.R. 2309, directs the FTC to adopt rules that prevent unfair and deceptive practices by dealers regarding credit and lending.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

In these tough economic times, the last thing business needs are unreasonable impediments on the sale of goods and services. Hasn’t all the bailout and stimulus spending been focused on unfreezing credit markets so folks can spend money and boost the economy?

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

In these tough economic times, driving business into the showroom is more important than ever. Many merchants invest significant resources into advertising their products in a manner designed to entice potential customers.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

In these tough economic times, many dealers are looking for ways to cut expenses and protect cash flow. Some will feel the need to cut back on advertising, while others will recognize that advertising can be a lifeline in a down market.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

Tough times usually mean an increase in the number of consumer complaints filed against retailers and creditors, at least that's been the case in my experience. So, as we face what many believe will be a difficult year for profits, it’s probably a good idea for you to be diligent about enforcing your store’s compliance policies and procedures.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

In these tough economic times, many dealers are looking for ways to cut expenses and protect cash flow. Some will feel the need to cut back on advertising, while others will recognize that advertising can be a lifeline in a down market.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

Many financial institutions and creditors around the country have spent the last six or so months working diligently to implement their identity theft prevention programs as mandated by Congress and the Federal Trade Commission’s new Red Flags Rule.

Tags: Compliance, Federal Trade Commission, LEGAL, Michael Benoit, Red Flags Rule

By Michael Benoit

I have the opportunity to work with several clients that provide sales and F&I training to dealers. On those occasions where I’m asked to help develop training content, I always include a section on payment packing.

Tags: Compliance, LEGAL, Michael Benoit, payment packing

By Michael Benoit

Dealers have all kinds of technology available these days to help them increase profitability, operate more efficiently, and generally make their lives easier. Like anything else, technology can come with legal baggage, and care must be taken to avoid an unintended compliance violation.

Tags: Compliance, Federal Trade Commission, LEGAL, Michael Benoit, telemarketing

By Michael Benoit

“Missed it by thaaat much . . .” That phrase always brings to mind the inimitable Don Adams and his bumbling but well-intentioned television character, Maxwell Smart.

Tags: bankruptcies, Compliance, LEGAL, Michael Benoit

By Michael Benoit

Many dealers I talk to have an appreciation for the value good compliance practices bring to their operation.

Tags: Compliance, Federal Trade Commission, LEGAL, Michael Benoit

By Michael Benoit

Way back in 2003, Congress passed the Fair and Accurate Credit Transactions Act (FACTA). We’ve talked about it a lot in this column. For us lawyers, it’s the gift that keeps on giving, and it just gave again with the recent proposal for the last of the major rules it mandated.

Tags: Compliance, Fair and Accurate Credit Transactions Act of 2003, Federal Reserve, Federal Trade Commission, LEGAL, Michael Benoit

By Michael Benoit

Dealers have been contracting for years with marketing companies that use so-called prescreen lists to offer auto financing to qualified consumers. The Fair Credit Reporting Act (FCRA) requires that each person on such a list receive a “firm offer of credit”.

Tags: Compliance, Fair Credit Reporting Act, LEGAL, Michael Benoit

By Michael Benoit

I’ve mentioned the Fair and Accurate Credit Transaction Act of 2003 (FACTA) several times in this column. You’ll recall that FACTA made significant amendments to the Fair Credit Reporting Act (FCRA), many in ways one may not have expected.

Tags: Compliance, Fair and Accurate Credit Transactions Act of 2003, Fair Credit Reporting Act, Federal Trade Commission, LEGAL, Michael Benoit

By Michael Benoit

Let’s face it; the law is not always the most stimulating topic for those of you who have lives. But knowledge is power, and it’s important to your business.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

A series of attacks on document preparation fees in several states has resulted in a line of cases holding that charging a fee to fill in the blanks on legal documents (for example, retail installment sale contracts) is the practice of law.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

Since 2003, I’ve been running around the country trying to impress upon people the fact that the Federal Trade Commission (FTC) is serious when it comes to safeguarding consumer information.

Tags: Compliance, Federal Trade Commission, LEGAL, Michael Benoit

By Michael Benoit

Unless you’ve been living under a rock, you all know that Southern California has had its share of devastating wildfires over the last several months. If you live in Southern California, you’ve experienced the hot Santa Ana winds and the “red flag warnings” that accompany them — that is, warnings of the potential for such a catastrophe.

Tags: Compliance, LEGAL, Michael Benoit, Red Flags Rule

By Michael Benoit

We’ve talked a lot about “process and procedure” in these columns, particularly as it relates to compliance. The operative word here is good, because procedures that conform to a lesser standard can really put a dent in your retirement plan.

Tags: Compliance, LEGAL, Michael Benoit, retail installment contracts

By Michael Benoit

You may recall the drama that played out in 2003 with regards to renewing certain provisions of the Fair Credit Reporting Act (FCRA). They were set to expire at the end of that year (if you don’t recall, trust me, folks in D.C. were losing sleep over this).

Tags: Compliance, Fair and Accurate Credit Transactions Act of 2003, Fair Credit Reporting Act, LEGAL, Michael Benoit

By Michael Benoit

Let’s face it — dealers get sued for a lot of things; sometimes it’s justified, sometimes not. The savvy dealer knows this and takes steps to manage risk accordingly.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

In past columns I’ve talked about compliance as a value proposition —something that often is hard to quantify except in comparison to “what might happen.” After numerous years in this business, I have to say the old adage, “an ounce of prevention is worth a pound of cure,” perfectly sums up the value of good compliance practices.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

As all of you know, spot deliveries are a common practice in many dealerships around the country. Where they are permitted by law and properly executed, spot deliveries are a valuable sales process.

Tags: Compliance, LEGAL, Michael Benoit, spot delivery

By Michael Benoit

Memorial Day weekend in Washington, D.C., is always an affair, from the 20,000-plus motorcycle-riding members of Rolling Thunder in town to raise awareness of POW/MIA issues, to the concerts and fireworks on the mall, and thousands of flags flying everywhere.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

We’ve had a couple of major developments this month, so this month’s column is devoted to updating you on the happenings around Washington, D.C.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

When I sit down to write this column every month, I try to think about what’s new, what’s novel, what do folks not know about, etc. A request from a reader asking for an article that discussed spot deliveries made me realize that sometimes, a “best practices” article on a subject that’s been around a long time may provide more bang for the buck from time to time.

Tags: Compliance, LEGAL, Michael Benoit, spot delivery

By Michael Benoit

A couple of years ago there was a lot of scrambling going on as financial institutions figured out how to comply with the customer identification program (CIP) requirements imposed by Section 326 of the USA Patriot Act.

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

Being a compliance lawyer, I ask new and potential clients to consider this question: “How do you value good compliance practices in your operation?” What would your response be?

Tags: Compliance, LEGAL, Michael Benoit

By Michael Benoit

There is a popular sci-fi show on TV called The 4400. It features some 4,400 people who were abducted by aliens and returned to earth en masse.

Tags: Compliance, IRS, LEGAL, Michael Benoit

By Michael Benoit

You’ll notice that, from time to time, I’ll devote a column to those pesky adverse action notice requirements. For those of you who may be thinking that I do this because it’s all the law I know, let me assure you that I have other talents as well.

Tags: Adverse Action Notice, Compliance, ECOA, Fair Credit Reporting Act, LEGAL, Michael Benoit

By Fred Fordin

Although dealers still have many questions about the requirements of the Patriot Act, the government will not consider ignorance as a viable defense. Compliance must be a top priority in all dealerships.

Tags: FEDERAL REGULATION, LEGAL, PATRIOT ACT