LAFAYETTE, Colo. — An F&I assessment tool created by KPA finds that risk training for dealership employees, while occurring in various forms across most, is inconsistent in terms of which risks are addressed, the company announced.
“We’re happy to report that training is happening,” said KPA District Manager Ryan Daly. “The vast majority of dealership F&I departments are training employees on critical risk areas like Red Flags, customer information security, ethics in the workplace, and cash reporting.”
However, Daly added, not every dealership is conducting adequate training to address all the major risks faced by F&I departments. For example, 24% of respondents reported not having any training related to the Federal Trade Commission’s Red Flags Rule.
Additionally, analysts found employees at one-third of dealerships do not lock up physical documents, creating a significant risk for customers, and one that can result in big fines if the unsecured files violate the Gramm-Leach-Bliley Act.
“If you can’t see who hasn’t been trained or what’s broken, you can’t plug any holes.”
Even more concerning, 21% of respondents don’t have up-to-date records of which employees have been trained on what risk area — making it nearly impossible to ensure that every employee has received critical information to help them understand their responsibilities and how to comply with policies to minimize risks, Daly said.
“If you can’t see who hasn’t been trained or what’s broken, you can’t plug any holes — and the liabilities only start to compound from there.”
The report was based on a survey of nearly 75 dealer participants. To review it in full, click here.