Rules of the Road

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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.
Hudson: My Job Application to Mr. Trump
In response to rumors that President-elect Donald Trump is preparing to oust the Consumer Financial Protection Bureau's director, the magazine’s legal eagle says he’s the right man for the job.
Magazine Offers Details on Compliance Summit Program
Scheduled for Aug. 29-30, Compliance Summit is designed to deliver a crash course in federal regulations and enforcement action to help dealers, agents and industry execs build sustainable sales and F&I processes without sacrificing productivity and profitability.

Rules of the Road News

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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.’
Auto Lands at No. 2 on N.Y. Attorney General’s Complaint List
The regulator who has championed New York’s crackdown on payment packing released his office’s Top 10 list of complaints received in 2017. Auto was 1,965 complaints short of the No. 1 complaint category: the internet.
Robert Wilkie, Under Secretary of Defense for Personnel and Readiness. Military Lending Act's December Update More Harmful Than First Thought
A Hudson Cook attorney told industry trade groups in a Jan. 18 memo that the Defense Department’s Dec. 14 interpretative rule, combined with something else it did in July 2015, makes it ‘highly unlikely that any dealer or finance source will be willing to originate or purchase’ a vehicle finance transaction if credit-protection products are included.
BB&T Tower in Atlanta (Wikimedia Commons and seniorliving.org) BB&T Switches Back to Markups as CFPB Shifts Away From Enforcement
BB&T announced its move about a week after the CFPB’s acting director stripped enforcement powers from the division responsible for pursuing discrimination cases in the auto finance arena. BB&T will officially make the switch on March 14.
Photo courtesy of Flickr user Ted Eytan Appeals Court Rules CFPB Structure Is Constitutional
On Wednesday, the D.C. Court of Appeals ruled 7-3 that a provision in the Dodd-Frank Act that says the CFPB director can only be removed for cause does not unconstitutionally constrain the president.
Hudson Cook Partners Elected Fellows of American College of Consumer Financial Services
The two partners, Lucy Morris and Ryan Stinneford, join 12 other Hudson Cook attorneys who have been named ACCFSL fellows.