By: Myril Shaw – Co-Founder and Chief Operating Officer

The word “Process” is key here.  That is what this is all about!  This a short version - our book, our training, and our complete Compliance Program offer the full details.

While Compliance does include printing, signing, and displaying the requisite Compliance documents, that is just a step, and while critical, an insufficient step in the Compliance Process.

The most important thing to remember about Compliance is that it is monitored and measured by government agencies, what they are really measuring is the level of caring about the dealer’s customers – both the honest and the dishonest ones.

The goal of Compliance is not the manuals, those are the instruction books for achieving the real goals:

·      Do not facilitate or fall victim to Identity theft or fraud

·      Do not deal with “terrorist” or other US banned individuals or entities

·      Do not facilitate or fall victim to money laundering

·      Do not participate in unfair or discriminatory customer practices – deceptive, discriminatory, or predatory pricing

In order to achieve these goals, practices that achieve them must begin when the customer is first being met and continue with the customer’s complete exit from the store and transaction.

For customers who are financing, there are two sets of Compliance best practices that must be followed. First, their personally identifiable information (PII) must be protected at all times. If credit applications are submitted online, or the information is stored online, two factor identification is required to gain access to that information (just a login with a password is insufficient, there must be a subsequent identity verification of those logging in, such as a verifiable text message, or some form of biometric authentication.) Once the PII is available, any printed versions must be fully, consistently, and constantly protected using locked filing cabinets, continuous, eyes on vigilance of deal jackets with this information, etc.

The other side of finance customers is ensuring that are who they say they are. Does their Social Security Number line up with where they say are from? Does their Driver’s License (and other identification documents) appear clean, clear, and un-tampered with? Does the information from a credit bureau match their application? Are they comfortable?

With the rapid growth of Synthetic Fraud, things get even more complicated. With Synthetic Fraud, the fraudster uses a blend of real PII (such as a child’s Social Security Number) with totally fictitious data in other areas.

The bottom line is that, if something looks suspicious or triggers concerns, get help. Lenders do have sophisticated Synthetic Fraud detection tools – talk to them. If it doesn’t look right – stop and check it out further.

For all buyers, especially cash (or cash equivalent) buyers, ensure that an OFAC examination is completed. The cash level does not matter. There is no lowest level of cash that needs to be checked for OFAC violations – it is better to be safe than sorry. Finance buyers get OFAC checked by both the credit bureaus and the lenders – ditto with credit card or check buyers. The OFAC Check is a simple form at https://sanctionssearch.ofac.treas.gov/. Just do it – and if it shows something that can’t be resolved with a little more information, call the OFAC hotline for help – 1-800-540-6322.

Finally, stay out of money laundering situations. Frequently these may be, if/when they occur, related to the OFAC check. That said, there are other things to watch for. In particular, “Air Deals” are always cause for caution. These are deals in which the buyer, generally a “cash” buyer, seems to not really care about the purchase price. They seem willing to take almost any sale price in exchange for a quick deal. On the other side, ensure that when taking a trade the seller seems at least somewhat concerned about the value being received.

While not directly a Compliance issue, another issue that can generate FTC/CFPB interest (and once interested, everything becomes fair game) is unfair or discriminatory customer practices – deceptive, discriminatory, or predatory pricing. Pricing that is different for different “classes” of buyers – classes is broad and can be as clear as race or gender but can also include cash or finance, trade-in types, age, etc. Set the price and stick with it, with the same negotiating guidelines for everyone.

The Compliance process starts early, ends late, and does rely on the five Compliance Manuals, properly executed and taught. The process includes but is not exclusively the manuals.

Be able to demonstrate complete Compliance with regularly or continually available training that can be documented for each involved individual. Do regular compliance inspections that are documented. Ensure that all “sub-processes” are documented and that the documentation is visible and available internally and for external inspection.

The Compliance Process may not be easy – it may save the store.

Exciting Special Offer For Comprehensive Compliance - PLEASE READ THIS FULLY.  Normally, the Comprehensive Compliance Program from Shaw Consulting is available for $1,499.00 and includes:

• All five fully updated and current Compliance Manuals along with complete directions to keep them updates
• Live and recorded Compliance Training
• Compliance Exam to be completed and executed by every team member for filing with manuals, to help demonstrate good faith
• Compliance Inspection checklists
• And more...

Here is the exciting part...as we are ramping up, we truly believe that the single most important thing that we can do, especially in today's climate of a much more active and aggressive FTC and CFPB is to help dealers ensure that they are compliant and compliance safe.

From now through May 31, 2023, we will offer to the first 45 dealers who sign up, all of this for $899.00 and we will also include our Comprehensive Guide To Recreational F&I And Compliance.  Just express your interest via email at compliancespecial@shawconsultingus.com.

Demonstrate compliance good faith now for only $899.00 - training  (live and recorded), manuals, proof, and a manual that will be available 24/7...just $899.00...compliancespecial@shawconsultingus.com.

The Comprehensive Guide To Recreational F&I And Compliance will be available for general release in mid-May and will carry a list price of $49.98. Copies may be requested early and anyone who makes such a request will gat a special price of $24.99 when the book is released. An email coming out on April 17, 2023 will include the Book Cover, Table of Contents and Introduction. Pre-orders and/or requests for the Book Cover, Table of Contents and Introduction may be sent to newbook@shawconsultingus.com . For pre-orders, when the book is generally available, an invoice will be sent to the requestor for $24.99 and when paid, they will receive the book immediately.

The are great times. Shaw Consulting US, LLC looks forward to helping with all of your F&I Profit and Compliance readiness needs.

About Myril Shaw and Shaw Consulting US, LLC

Myril Shaw have extensive experience in helping dealer maximize their F&I and minimize their Compliance risk. He is well known in the recreational industry have run highly successful companies, providing valued training and consulting, and being a recognized public speaker as well as content contributor to industry magazines and publications. He lso has well-known technical expertise in building F&I systems and processes. If anyone can, Myril can!

Formally launched in early March 2023, Shaw Consulting US, LLC was co-founded by Myril Shaw and Margaret LaCagnina. Their mission was and is to provide an accessible organization to help dealers achieve F&I Profit in excess of 5% of unit sales and minimize dealer’s Compliance risk by providing complete training and all required documents so that, at a minimum, dealers are able to demonstrate a “good faith effort” in all areas of Compliance through a combination of standard and customized programs to address all dealer needs in F&I and Compliance.

Please check out our website at https://shawconsultingus.com/.