Article Contributor: Jim Radogna
When running a business or managing a department, its common practice to require data before believing information. For instance, if your sales department claimed that they had a 65% closing ratio, you would require analytics to back up their claims. In fact, as a manager, you measure a large amount of information on a day-to-day basis. So, that being said, are you adequately measuring the level of compliance and ethical behavior at your business?
When asked about F&I practices and compliance, common answers are:
- “We’ve been doing it this way for years- it hasn’t been a problem yet.”
- “We have insurance. If we get sued, that’s what it’s there for.
- “Compliance takes a hefty chunk out of our pay plan. I’ll do whatever it takes to make a decent paycheck.”
Answers like that are a recipe for disaster. Sure, you can bury your head in the sand and hope to avoid a financial catastrophe, but is it really worth the impact when you get caught or discover that your customers are being treated differently than you expected?
Three simple steps can keep your business out of hot water:
- Conduct an F&I operations audit to determine and understand where your business stands.
- Train your staff on all aspects of legal compliance.
- After training, have all staff sign a code of ethics that will not only help protect your organization, but will also let everyone know business is serious about compliance and ethical behavior.
These simple steps are far more affordable than the costs associated with lawsuits, regulatory actions, and, most importantly, damage to your company’s valuable reputation. Don’t find out the hard way that your processes aren’t what you thought they were.
Are you ready to protect your company and clean up your F&I compliance? Email firstname.lastname@example.org.