Growing State-level Oversight
The auto finance regulatory landscape is undergoing a dramatic shift, creating unprecedented operational and compliance complexity for lenders, especially in F&I product lifecycle management from originations to cancellations and refunds. While the CFPB is scaling back in certain areas, state regulators are stepping up oversight of aftermarket products.
For auto lenders who finance loans containing rolled-in aftermarket products like Guaranteed Asset Protection (GAP) waivers, Vehicle Service Contracts (VSCs) and other protection plans, being audit-ready is clearly imperative and getting more complicated.
Failure to demonstrate robust governance over the full product lifecycle, from origination and dealer conduct through cancellation and refund processes, exposes lenders to financial, reputational and legal risks.
We’ve prepared an eBook, “”Get Audit-Ready: Best Practices for Auto Lenders Financing Aftermarket Products” to help auto finance teams navigate this fragmented regulatory environment.
Growing Complexity
The rapid proliferation of state-specific consumer protection laws is replacing centralized federal standards with 50 different sets of compliance rules. This shift has put immense pressure on auto finance companies already managing complex operations.
The stakes are quantifiable and substantial, especially concerning the downstream activities of cancellation and refunds. This intense scrutiny requires lenders to proactively manage every facet of the F&I product experience, knowing that they can be held liable for dealer misrepresentations or aggressive sales tactics under the Holder Rule.
Seven Pillars to Audit-Ready Success
This eBook highlights seven best practices with actionable advice for building a compliant framework to withstand regulatory checks, including:
- Evaluate All Aftermarket Products Before Funding
- Ensure Accurate and Transparent Pricing Practices
- Formalize Dealer Oversight and Accountability
- Centralize Cancellation and Refund Operations
- Enhance the Loan Servicing Experience
- Ensure Data Integrity and Regulatory Reporting Readiness
- Enforce Data Privacy and Vendor Accountability
eBook Sample Review
Getting Audit-Ready: What You’ll Learn
Vendor Oversight – Why third-party partner oversight is just as important in safeguarding against your institution’s regulatory risk and preserving consumer trust.
Pre-Funding Safeguards – How to vet aftermarket products for compliance and insurer backing before they ever hit your books.
Dealer Relations – Best practices for ensuring transparent disclosures and dealer training.
Servicing Excellence – How to simplify cancellations, improve the borrower experience, and prevent complaints before they escalate.
Refund Accuracy & Data Integrity – Steps to automate refund calculations, enforce timeliness and maintain auditable records that regulators demand.
