Rules of the Road

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Eric Johnson, partner at Hudson Cook LLP The CFPB’s Spirit Lives On
In the first of a series of F&I Think Tank webinars, attorney Eric Johnson offered a wake-up call to dealers and F&I professionals who thought the industry won a decisive victory over the Consumer Financial Protection Bureau when the federal agency’s auto finance guidance was rescinded in May.
Snatching Defeat From the Jaws of Victory
Some states, including Minnesota, permit ‘as is’ sales with no written warranty and an exclusion of implied warranties. No state, including Minnesota, permits fraud.
Arbitration Agreements: Not Always Good All the Time
Hudson explains why arbitration agreements are no substitute for frond-end compliance.
Technology Can Compel Compliance
New and widely available tools can help auto dealers automate parts of the sales and F&I process while preventing errors and deterring fraud.
A Dealer Win, and a Couple of Lessons
Hudson recounts the inspiring tale of a dealer who prevailed in a lawsuit in the consumer-friendly state of Maryland.
Treat Your Customers With Consideration
Consideration is both an admirable trait and a legal term. Hudson explains how one Tennessee dealer prevailed when a car buyer objected to arbitration.
NLRB General Counsel Throws Dealers a Lifeline
President Trump’s pick for Labor Board general counsel just swung the pendulum back to an employer-friendly stance. Human resources expert weighs in.
How to Achieve Compliance Confidence
Got three minutes? Read this three-part briefing on the agencies, topics and resources you need to know to avoid compliance issues in 2018.
President Donald Trump promised sweeping regulatory reform on the campaign trail and could play a pivotal role in easing or eliminating some regulations affecting the auto finance industry. Photo by Gage Skidmore 5 Ways Trump Can Alter Finance
Auto dealer regulations face an uncertain future under the Trump presidency. Two California-based attorneys take a look at the road ahead for the CFPB, the FTC, and state regulators.
Service Advisors Are Working Overtime
The Ninth Circuit has reaffirmed that service advisors are not subject to exemption from overtime pay. Compliance expert unpacks Navarro v. Encino Motorcars LLC and the effect it could have on your fixed-ops budget.

Rules of the Road News

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FTC, 12 Partner Agencies Conduct Used Car Rule Compliance Sweep
The compliance sweep, which took place in seven states, is the first since the agency's new Used Car Rule took effect earlier this year. Dealers who failed to comply could face penalties of up to $41,484 per violation.
CFPB Official Who Sued Trump Resigns, Drops Suit
The CFPB official who went to court last year after Trump appointed Mick Mulvaney as acting director announced on Friday she is leaving the embattled regulator. In a tweet, her attorney said the CFPB official is also dropping her legal fight to be the regulator's acting director.
KPA Acquires Auto Advisory Services Inc.
The acquisition of the F&I audit services firm enables KPA to become a single source for automotive compliance. The transaction closed on May 31.
Webinar: Gil Van Over to Tackle Compliance Issues on the Road to the Sale
Compliance expert Gil Van Over will deliver Part Two of F&I and Showroom’s compliance webinar series, “CFPB Defanged: Rise of the eDealership.” The webinar is scheduled for July 11 at 11 a.m. PT/2 p.m. ET.
Trump Signs Repeal of CFPB’s Dealer Participation Guidance
The president’s signature comes exactly five years and two months after the bureau put the auto finance industry on notice with its controversial guidance on dealer rate markups.
House Approves Resolution to Repeal CFPB's Dealer Participation Guidance
As expected, the House approved the resolution of disapproval of the CFPB's guidance on dealer participation. With the Senate having voted on the resolution last month, all that's left to rescind the controversial guidance is President Trump's signature.
Calif. Dealers Seek New Protections Under State's Franchise Laws
New legislation aimed at strengthening dealer protections under California’s franchise laws will have its first committee hearing on Monday. One of its provisions specifically addresses the disclosure policy General Motors issued last summer regarding the sale of non-GM service contracts.
U.S. Senate Approves Resolution to Repeal CFPB’s Dealer Participation Guidance
Today’s vote leaves it up to the House of Representatives to pass its version of the joint resolution of disapproval. Once that happens, only the president’s signature stands in the way of the industry’s more than five-year campaign to get the CFPB’s controversial guidance repealed.
Wells Fargo Faces $1 Billion Fine for Mortgage and Auto Insurance Issues
Wells Fargo’s first-quarter earnings call was staged amid a string of regulatory concerns, declining auto originations, and the sale of a Puerto Rican subsidiary. But the company’s chief executive said the bank’s auto finance business will grow again.
Appeals Court Vacates Some FCC Rules on Robocalls
The D.C. Circuit Court of Appeals vacated the FCC’s rule clarifying what devices qualify as automated telephone dialing systems, saying the agency’s explanation ‘invites conclusions that all smartphones are autodialers.’