This month marks Bobit Business Media’s first PowerSports
F&I Conference. For those not attending, I’d like to give you a taste of
what you’re going to miss.
The show kicks off with a panel discussion addressing what I
think is the biggest challenge for powersports dealerships these days —
funding. Moderated by Josh Clark, the Sept. 16 panel (1:15 p.m.) will include
representatives from XpressCredit, HMR Powersports Financing, Sheffield Finance
and financial consultant Peter Jones.
I don’t have to tell you how difficult it is to find lending
sources out there. Many of you received the Aug. 4 facsimile from HSBC
promising stricter enforcement of its finance policies. For those that didn’t,
check out our news story on page 8. There aren’t any secrets to finding new
finance sources either, as F&I manager Cindy Wallace, a former senior
underwriter for GE Money Bank, will tell you on page 16.
Here’s the deal, finance companies and banks are looking for
bulletproof deals. The auto industry was reminded of that fact in recent months
with the loss of HSBC and Triad, and Chrysler’s announced end to leasing. The
credit markets are very skittish right now, which is why you need a dedicated
F&I professional to find financing options for your dealership. That’s why
I’m excited about our opening panel on funding.
We’ve also put together a great collection of experts to
lead the conference’s workshops, including Ron Martin of The Vision of F&I,
David Robertson of the Association of Finance and Insurance Professionals,
Rebecca Chernek of Chernek Consulting, and Rick McCormick of Reahard &
Associates.
We even have Todd Baldwin as a keynote speaker. The former
general sales manager for Chaparral Motor Sports, one of the largest dealers in
the nation, will discuss the processes he employed at his former dealership to
maximize both sales and F&I profits.
There’s one additional panel I wanted to bring to your
attention — the Red Flags Rule panel on Sept. 17 at 10:50 a.m. Born out of the
Fair and Accurate Credit Transaction Act (FACTA), the Red Flags Rules are the
newest weapon to combat what is the No. 1 complaint received by the Federal
Trade Commission — identity theft.
And starting Sept. 1, any business or institution that falls
into the category of “creditor” will have exactly 62 days to meet the Nov. 1
compliance deadline. That means any business or department handling consumer
credit will have to develop processes for verifying a consumer’s identity.
Think of the new rule as a way for federal agencies to fill
the cracks in the system that allowed identity thieves to pilfer the identities
of others. Six agencies were involved in drafting the new rule and the 26
guidelines or examples of identity theft that businesses need to monitor.
I can’t give you every step you need to take to become
compliant, but I’ll give you the basic gist of the rule. You first have to
identify all areas of the dealership where credit is handled. You then have to
determine the sources of red flags relevant to your business. From there, you
will need to formulate procedures F&I managers and salespeople must adhere
to on every transaction.
You also need to remember the rule is a moving target, which
means your program must be updated periodically to include new threats.
Now, as daunting as the Red Flags Rules sound, an FTC
representative told me the agency is only looking for a good-faith effort. It
understands no program will be bulletproof, but it does expect you to do your
due diligence when it comes to compliance.
See what you’re going to miss? Don’t worry. I’ll have a full
report on the show in the next issue of PowerSports F&I.