Compliance training is an integral aspect of any sales consultant’s development. A minor compliance setback can cost a car dealership or an auto insurance company thousands of dollars and other sanctions.
F&I Compliance Questions to Test Your Knowledge
Getting the right information and training is essential when you are planning to start a new career in the automotive industry. This is to ensure that not only are you able to impress your clients but that you are also able to provide top-notch customer service.
Here are F&I compliance quiz questions to test your industry knowledge.
When Does the F&I Process Begin?
Your responsibility for F&I compliance begins after the client expresses an intent to purchase, even when this is done verbally. The responsibilities of an F&I manager include reviewing terms, assessing customer credit score, providing options, preparing documents, and satisfactorily delivering the vehicle.
Who is Liable for Compliance Lapses?
All the staff in the dealership is responsible for compliance lapses, but the finance and insurance (F&I) department bears the most responsibility. This is because they handle the financial processes and paperwork involved.
If you are an F&I manager, you’ll need to ensure that every F&I personnel is well trained on regulatory requirements at every step of the process – from purchase details to financing and insurance paperwork.
What is the Most Critical Aspect of F&I Compliance?
Regulatory requirements demand heavy paperwork. But the most critical aspect of F&I compliance is security, particularly cybersecurity. As of mid-2020, almost 4,000 data breaches were reported, and roughly 11% of them were in the F&I sector.
Several regulatory bodies monitor security compliance, including federal mandates over data storage, information sharing, and payment card processing.
Is Managing User Permission Necessary?
Yes, managing user permission is essential to stay in line with compliance protocols, especially when you accept online applications. State laws demand legal and controlled use of clients’ personal information, which forms part of the application process.
What Forms Should You Make Available?
Digital documents are allowable. You can upload brochures, accept and decline forms, warranty extension requests, cancellation forms, and other forms that don’t require a customer’s physical presence.
Is Sales Worksheet Necessary?
It is not mandated, but, as it helps agents ensure compliance, it is necessary. The process can get muddy and overwhelming, especially if you are new at it. A checklist helps ensure no documents (e.g., driver’s license copy) are missed or process overlooked.
Choose The Ace Group as Your Partner in Automotive Consulting
The Ace Group is one of the nation’s leading automotive consulting firms. If you are looking for a company that can offer flexible terms, excellent coverage, better products, and world-class training, look no further – we are the right partner for you.
To learn more about our automotive consulting, contact us today to set an appointment.