The Industry's Leading Source For F&I, Sales And Technology

Article

Q&A: CCIA Talks Pink-Slip Protection, Industry's Ominous Threat

May 2009, F&I and Showroom - Feature

by Gregory Arroyo - Also by this author

Established as the Consumer Credit Insurance Association in 1951 to preserve a creditor’s ability to offer debtors life, disability or property insurance, the Chicago-based Consumer Credit Industry Association (CCIA) has been busy of late. Aside from monitoring the impact of employment protection on F&I revenue streams, the association is taking on a new legislative threat to the auto industry. Executive Editor Gregory Arroyo sits down with William Burfeind, executive vice president of the association, to discuss the organization’s recent activities.

F&I: The association has obviously been around a long time. How has its role changed since its formation?

WB: The insurance provided by our members still provides the same financial security and peace of mind to debtors, as well as an additional income stream to creditors. When we first formed, our mission was to preserve a regulatory environment conducive to the business. And that mission essentially remains the same today.

Of course, the scope of the association has expanded commensurate with the scope of optional products over the years. And as this expansion began to include non-insurance products, the association began doing business as the Consumer Credit Industry Association, recognizing it was not just insurance products in which our members were engaged. Our membership now includes insurance companies and other financial service providers.

F&I: You mentioned preserving the business. My understanding is there is a major legislative threat against the industry right now.

WB: The composition of Congress suggests an inclination to enact consumer protections long favored by consumer advocates. In fact, in a speech to the Consumer Federation of American assembly, Senator Chris Dodd (D-Conn.), who chairs the Senate Committee on Banking, Housing, and Urban Affairs, said the current financial mess has presented a “window of opportunity” to achieve a number of objectives that have been “elusive” over the years.

Right now, the most ominous threat to our industry are several bills making their way through Congress that would establish a national usury rate of 15 percent in one instance, and 36 percent in others. One of those bills, S. 500, was introduced by Senator Dick Durbin (D-Ill.).

F&I: We wrote about this legislation last month. My understanding is these proposed caps would seriously impact F&I.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

Blog

So Here's the Deal

Ronald J. Reahard
The Dealer Moved My Goal Posts

By Ronald J. Reahard
Top trainer has hard-earned advice — and a word of warning — for F&I pros whose dealers seem to change their pay plans every time they have a good month.

Addressing F&I’s Internet Problem

By Ronald J. Reahard
A frustrated F&I manager poses an increasingly common question: How do you sell protection products to customers who demand the final price by phone and then show up with a bank check?

(Video) Selling Eight Products Without Losing the Customer

By Ronald J. Reahard

He Had a Goal: Remembering David Ressler

By Ronald J. Reahard

Done Deal

Gregory Arroyo
The Repair Is Covered

By Gregory Arroyo
The editor opens up about his first service-contract claim, which resulted in a covered and repaired vehicle as well as a few lessons.

Change Is Happening

By Gregory Arroyo
Saddened by the potential loss of another piece of his childhood, the editor tries to put the pieces together when he realizes there’s a good lesson to be learned in a toy retailer’s likely demise.

Who Will Take Up the CFPB's Torch?

By Gregory Arroyo

Military Lending Act Guidance: The Gift That Keeps On Giving

By Gregory Arroyo

Mad Marv

Marv Eleazer
Is That Legal?

By Marv Eleazer
Is manipulating a sales agreement to accommodate a customer’s request to cash out of a dealer-arranged retail sales contract allowed? His Madness gets answers from the industry’s top legal mind.

Overcome Your F&I Weaknesses

By Marv Eleazer
His Madness issues a challenge to every F&I professional: Eradicate your bad work habits, diversify your lender spread, and check your God complex at the door.

Proper Deal Structure Moves Mountains

By Marv Eleazer

Show Us Some Love

By Marv Eleazer

On the Point

Jim Ziegler
Bound to Fail

By Jim Ziegler
Da Man returns with a message to vehicle manufacturers jumping into the subscription waters: It ain’t gonna happen.

Sharpen Your Survival Skills

By Jim Ziegler
‘Da Man’ has a plan you can use to survive the collapse of the car business and remain profitable through the dealer apocalypse.

Sales Rock Stars Still Exist

By Jim Ziegler

The New Stooges

By Jim Ziegler