November 12, 2019
SubPrime Auto Finance News publishes Partner Eric Johnson's article on weeding out unethical dealership employees
In the November/December issue of SubPrime Auto Finance News magazine, Partner Eric Johnson cautions dealers to find and "weed out" unethical dealership employees before they damage the entire dealership.
Some of the unethical practices to keep an eye out for include payment packing, power booking, faking credit credentials, requiring a service contract as a condition of getting financing, fanning, fluffing or changing the cash price of a vehicle when the employee learns that the buyer has bad credit. Eric reminds dealers that they can find articles practically every day about dealership owners suing former GMs and F&I managers, alleging that they falsified credit applications with nonexistent trade-ins and down payments, listed the manufacturer's rebate as a customer's down payment, inflated incomes and fakes utility bills as proof of a customer's residence.
Eric advises dealers to have a code of ethics that is posted where consumers can see it, and to have every employee read and sign it. Dealers must also mandate ethics and compliance training. Dealers should screen potential employees for ethical challenges in previous employment, reward employees who follow the rules and punish those who don't.
Eric assists national and state banks, savings associations, credit unions, mortgage bankers, other licensed lenders, motor vehicles dealers and automotive finance companies in the development and maintenance of nationwide consumer mortgage and automobile finance programs; online motor vehicle sales programs; litigation funding programs; and electronic payment programs. Eric serves as Chair to the Legal Committee for the National Automotive Finance Association and is a co-founder and co-instructor of their Consumer Credit Compliance Certification Program.
Click here to read the full article on page 28.