Special Finance Group » law

Fake Paystubs: A Costly Scam

sfgadmin — Thu, 24 Oct 2013 19:27:56 +0000

In the past year, special finance departments across the country have been faced with a new problem, a problem that can destroy relationships with banks and lenders and lead to millions of dollars in fines and prison time.

One of the most important documents needed when applying for a subprime auto loan is a paystub. A paystub proves that the applicant is employed and making a certain income. Unfortunately, some desperate people who haven’t been able to obtain financing are producing fake paystubs in hopes of getting approved for a car loan. This story was first reported by Greg Goebel over on F&I and Showroom, and sadly, this is not an isolated incident. There are websites that allow users to print fake paystubs and YouTube videos that show how to produce fake paystubs.

To be absolutely clear, creating fake paystubs is illegal, and it is a costly crime. Offenders can face up to 30 years in prison plus fines up to $1 million. It is illegal to produce them for customers who are paid under the table. There is no circumstance under which you or your dealership should assist a customer in producing fake paystubs, and as much as possible, you should verify the paystubs are authentic.

Even if your dealership is fooled by fake paystubs and completely blameless legally, these incidents can still damage your dealership’s relationship with banks and lenders. Those relationships are vitally important to a successful special finance department, so be aware and know what to look for in spotting fake paystubs.

Want to learn more about how Special Finance Group can work for your dealership? Go to http://www.specialfinancegroup.com today to learn more about the Complete Special Finance Solution, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

Image courtesy of moggara12 / FreeDigitalPhotos.net

New Colorado Law Protects, Clarifies Dealership Rights

sfgadmin — Wed, 12 Jun 2013 18:22:59 +0000

Last Wednesday, Senate Bill 265, which clarifies and re-enforces current auto dealership protections, was signed into law in Colorado.

According to F&I Magazine, the new law will update dealership protections passed in 2009, 2010, and 2011. These protections included limiting manufacturer-mandated renovations as well as giving dealerships the right of first refusal in the case of a manufacturer filing bankruptcy, closing a location, and then opening a new franchise in the area.

The biggest problem that dealerships ran into when reinforcing the new protections was manufacturers claiming that the laws didn’t apply to franchise agreements signed before the law was passed. Dealerships that ran into this problem often didn’t want to cause more trouble with the manufacturer, so they didn’t speak up. Fortunately, a few spoke up including Don Hicks, CEO of Shortline Auto Group, and they prompted the bill’s introduction.

One of the bill’s sponsors Colo. Sen. David Balmer praised Governor Hicklenlooper for signing it into law, stating, “Now Colorado will lead the country in protecting the free-enterprise rights of auto dealers and their car-buying customers.”

Image courtesy of nirots / FreeDigitalPhotos.net

CFPB to Oversee Car Dealerships In New Year

sfgadmin — Tue, 19 Feb 2013 17:10:40 +0000

It has been 3 years since the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law. Now in 2013, the Consumer Financial Protection Bureau (CFPB) is taking a more active role in overseeing auto loans and car dealerships.

In a few short years, the CFPB has taken on credit card companies, the big 3 credit bureaus, and predatory lenders. They have informed the public of consumer protection laws and issued rules to protect homeowners from foreclosure. As they turn their focus to the auto industry, though, some people in the industry are jumping to conclusions, imagining regulators breathing down their necks and slapping dealerships with fines every time someone forgets to dot an “i” or cross a “t.”

In response to these concerns, the CFPB has reached out to dealership groups and even sent out a representative Richard Hackett to the National Automobile Dealers Assn. convention in Orlando, Fl. At the convention, Hackett explained that the CFPB expects some human error in dealerships, but their main goal is to spot patterns of non-compliance in dealerships. The CFPB is trying to strike the right balance of alleviating fears while also letting dealerships know that they aren’t going anywhere. Dealerships will need to learn to work with the CFPB and stay current on consumer laws and regulations. As long as they are willing to take those steps, there is no need to worry.

As part of the Complete Special Finance Solution, Special Finance Group works with their associated dealerships to keep the special finance reps current on all new consumer protection laws. Compliance is more important than ever, and having the Complete Special Finance Solution gives your special finance department yet another advantage over the competition.

Want to learn more about how Special Finance Group can work for you? Go to http://www.specialfinancegroup.com today, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

3 Big Steps to a Fully Compliant Dealership

sfgadmin — Fri, 19 Oct 2012 17:00:07 +0000

Is your dealership following strict compliance? Many dealerships might think they have nothing to worry about complying with federal and state consumer protection laws, but with the new Consumer Financial Protection Bureau, full compliance is more important than ever.

There are three steps that you can take to review your dealership and catch any potential problems or missteps before they become a bigger problem. First, review your employee training procedures. If this information is not written down and streamlined, take the time to do so now. It will make training easier and clearer in the future, and you will also ensure that nothing important gets missed.

Second, go through your dealership’s written policies and procedures with a fine tooth comb, and ask a compliance lawyer to also take a look over it. Also, be sure to have a copy of the most recent relevant consumer laws on hand. You can find the most recent regulations enforced by the Consumer Financial Protection Bureau here. If there is anything that could be potentially problematic in any way with your current policies or procedures, make the change now in writing, and keep a new copy of your policies and procedures on file.

Third, review your new policies and procedures with all employees, especially anyone who thinks they already know what they are doing. Ignorance can keep a dealership non-compliant, but complacency is far worse for a dealership.

At Special Finance Group, we are constantly working to maintain full compliance with consumer financial regulations. We see compliance as a job that is never done in every part of our business from our first contact with a customer to handing over the keys to a new or used vehicle. Our hard work has led to hundreds of happy customers who have had a positive experience and driven off with a car.

Special Finance Group’s Complete Special Finance Solution can help your dealership too! Click here to learn more, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

Image courtesy of Jeroen van Oostrom / FreeDigitalPhotos.net