MINNEAPOLIS, Minn. – Is your staff ready for new financial regulations? Wolters Kluwer Financial Services has launched a comprehensive fair lending training program for powersports, automotive, RV and marine dealer staff.
The program is designed to educate finance department personnel and equip them with fair lending standards to help them ensure compliance and maintain strong lender relationships. The program was reportedly developed to help dealers cope with increased pressure from lenders and heightened scrutiny of fair lending practices at the dealership level.
The training program educates and tests users on key fair lending regulations, and provides them with a customizable fair lending policy to use in the dealership for ongoing operational compliance. The program also provides dealers with a template to manage and track standard exceptions for demonstrating compliance with exception policies to lenders.
In March, the Consumer Financial Protection Bureau published CFPB Bulletin 2013-02, Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act. (ECOA). Since then, the CFPB has issued subpoenas in an expansive probe into indirect auto lending practices, and the federal Justice Department is investigating auto dealers for rate markup practices, hinting that further legal action targeting dealers directly may be on the horizon. It has prompted a great deal of analysis, discussion and concern within the network of dealers and their lender relationships.
"While dealers generally fall outside the jurisdiction of the CFPB, recent developments have made it clear the lenders they work with will not escape the scrutiny of regulatory bodies which enforce ECOA compliance. These lenders are certainly starting to exert pressure on dealers to find ways to demonstrate that they are in compliance with fair lending regulations," said Chip Zyvoloski, senior attorney-indirect lending with Wolters Kluwer. "Our fair lending training is designed to help dealers comply with the law, protect them from risk and at the same time provide them with a way to demonstrate ongoing compliance to their lender relationships."
For more information about the fair lending training program see www.wolterskluwerfs.com/dealers.
Posted by Holly Wagner