September 2023 Edition

iA American at the EFI Conference

Last week, iA American attended the Ethical F&I Managers (EFI) Conference in Las Vegas as the Premier Diamond Supporter. With first-time attendees accounting for 23% of the audience—and most of them retail F&I managers—the fifth annual event was a major success. Session topics ranged from objection handling, product formation, and recent compliance updates to F&I leadership and addressing the disparity between men and women in the business office.

As the Premier Diamond Supporter, iA American provided the financial prizes for winners of the annual conference game show, “So, You Think You Can Do F&I?”. After a first-round F&I trivia game, the top five retail participants with the highest scores moved on to the second and final round: an F&I role-play competition. Each contestant was faced with the challenge of overcoming customer objections on stage in front of the audience. The winners were determined by audience vote.

Founded in 2019 by our own Tony Dupaquier and some of the industry’s most experienced F&I experts, the EFI Conference is “for F&I, by F&I” and seeks to benefit the advancement and interest of those working in the F&I office, with a foundation of ethicalprinciples and practices.

A Compliance Officer Could Save Your Dealerships Millions

Despite dealerships being required by law to have a dedicated compliance officer, many still don’t have one. Dealerships often still function the way they always have because “that’s how they’ve always done things.” But the truth is, the state of automotive laws these days requires a change. Without a compliance officer, dealers are at risk of having to pay out thousands and even millions in penalties for violations if they’re not up to date on compliance.

Violations can range from bank fraud and falsifying credit applications to simply forgetting to put customer paperwork away. Whether intentional or careless, these kinds of mistakes can cost anywhere from $3,500 to $25,000 per violation, or more. A UDAAP violation (unfair, deceptive, or abusive act or practice) can cost up to $1 million per day.

With the CFPB cracking down more and more on dealership compliance violations and the laws regarding dealership operations being in constant flux, dealerships should be taking the role of compliance officer very seriously. Attorneys Terry O’Loughlin of Reynolds and Reynolds and Randy Henrick of Ignite Consulting Partners – both of whom have served in myriad compliance roles for dealer and consulting groups across the country – recommend a permanent compliance officer who reports to the dealership or dealer group board of directors. The role also should not be filled by someone who also holds another position in the dealership; this is in order to prevent conflicts of interest and distraction from the compliance focus. There is certainly enough compliance responsibility to warrant a separate, full-time role.

For those who need a starting point, the Association of Dealership Compliance Officers (ADCO) is a valuable resource for helping compliance officers get started and excel in their role. ADCO offers certification, compliance webinars, and ongoing compliance support.

Help your dealers maintain a positive reputation and be proactive against compliance penalties by talking to them about a dedicated compliance officer.

Our Previous iA American Spotlight: MyiAAWG.com!

At our previous iA American Spotlight, formally referred to as Agent Spotlight, we took a deep dive into MyiAAWG.com! On September 15th, Matt Romanowski, Jon Roberts, and Scot Craigmile took agents through our resourceful website.

With our extensive suite of products, you can find summaries, sample contracts, and accompanying marketing materials to help make your job even easier! You can also find a variety of forms including dealer forms and reinsurance forms. We encourage you to explore MyiAAWG.com and discover all of the helpful resources and tools that are available to you!

If you need login credentials for MyiAAWG.com, you can send an email to [email protected].

If you have any questions or would like to get ahold of any of the training material, please contact:

Matt Romanowski: [email protected]. 443.880.0918

You Have to Learn More to Earn More! Check Out iAATI's Current Training Opportunities!

iA American Training Institute (iAATI) has the F&I training and processes to ensure the best customer experience, increase in profitability, and compliance best practices for your dealerships.

Important Note: iA American agents and dealership personnel who wish to take advantage of iA American Training Institute’s training opportunities in 2023 can do so at no cost by using the code IAAWG2023. Please contact Tony or Mike if you have any questions or need more information.

T.U.S.K. F&I School

Course description: T.U.S.K. F&I School introduces a progressive and innovative curriculum that is designed for business managers at every level. It teaches our customer-centric 15 Minute F&I Turn process, intended for today’s more informed, better educated customers.

Topics covered include:

F&I process
Primary functions of the business manager
Working with today’s internet-educated customer
Primary emotions, commitment, and ownership
Legal compliance
Effective menu presentation using Y.E.S. method
RISC disclosure, A.B.C. objection technique, and much more

October T.U.S.K F&I School in Las Vegas

Course Start Date: 10/2/2023

Course End Date: 10/5/2023

To Register: Please click here

October T.U.S.K F&I School in Austin, TX

Course Start Date: 10/3/2023

Course End Date: 10/6/2023

To Register: Please click here

November T.U.S.K F&I School in Las Vegas

Course Start Date: 11/6/2023

Course End Date: 11/9/2023

To Register: Please click here

November T.U.S.K F&I School in Oklahoma City (OKC)

Course Start Date: 11/7/2023

Course End Date: 11/10/2023

To Register: Please click here

For more information about iAATI training opportunities, please call or email your Sales Rep, or contact:

Tony Dupaquier | North American Training Director

[email protected] | 512.542.1669

Mike Holliman | National Director of Training
[email protected] | 918.361.4524

Legislation Summary - Service Contracts, GAP, and Lender Update Information

By Lisa Kirk, AVP, Compliance Officer

Below are links to PDFs of legislative summaries for service contracts and GAP products, as well as lender updates.

The legislative updates summarize legislation recently passed, introduced, and currently pending.

2023-08_Legislation Summary-Service Contracts

2023-08_Legislation Summary-GAP

The Lender updates provide the name of each lender, what is being asked, the products involved, the deadline for completion, and our current status.

2023-08_Lender Updates

If you have questions regarding any of this information, please speak with your Sales Representative. Thank you!

iA American Claims Performance for August