Tag Archives: Auto Dealerships

Guest Article Jim Ragodna: Compliance vs. Ethics: The Lines are Getting Blurry in the Car Business


By Jim Ragodna. Ethics and compliance are different from each other, but both are vitally important to the long-term success of dealerships and automotive professionals. Often the terms “unethical” and “illegal” are used interchangeably. Ethics is personal – it means … Continue reading

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Guest Contributor Jim Radogna: F&I Fact vs. Fiction


By Jim Radogna. It’s not uncommon for me to be asked to weigh in on the occasional compliance conundrum posed on some social media forum. Many such inquiries involve disagreements about long-held beliefs in F&I and whether or not they’re … Continue reading

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Auto Dealers Entitled to Money Distribution in Auto Parts Antitrust MDL Case


By Greg Johnson. On November 19, 2015, U.S. District Judge Marianne O. Battani of the Eastern District of Michigan issued an Order Granting Final Approval of an initial, partial settlement of $59 million to auto dealers in the multi-district (MDL) … Continue reading

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Guest Contributor Jim Radogna: Dealer Fees Under Attack


By Jim Radogna. Two recent actions for alleged dealer fee violations in South Carolina and Indiana are a potential cause for concern in other states due to the likelihood of copycat legal actions. While these states had no caps on … Continue reading

Posted in Coverage, Doc Fees, Indirect Financing, Regulatory Compliance, TIL Disclosures, Truth in Lending Act | Tagged , , , , | Leave a comment

Why do Auto Dealers Purchase Limited Truth in Lending Coverage?


By Greg Johnson. Why do dealerships keep purchasing statutory errors and omissions coverage that is not likely to protect the dealership if it is sued by a customer for truth in lending violations? I’ve been handling dealership insurance coverage disputes … Continue reading

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Protecting the Dealership’s “Front-End” and “Back-End”: What Does that Mean?


By Greg Johnson. Everyone in the retail automobile industry is familiar with the terms “front-end” and “back-end.” They represent two sources of potential revenue (and, hopefully, profit) for auto dealerships: The “front-end” refers to revenue realized on the sale of … Continue reading

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Minnesota Dealership and Lenders Prevail in Fair Credit Reporting Act Litigation


By Greg Johnson. Can an auto dealership be liable for damages when it transmits a customer’s credit application to several financial institutions through an automated on-line credit application system and the financial institutions pulls the customer’s credit report without express … Continue reading

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The CFPB Strikes Again – Class Action Waivers to be Eliminated? Maybe Not.


The Bad News.By Greg Johnson. At a recent Consumer Financial Protection Bureau field hearing in Denver, the CFPB revealed a proposal to eliminate the use of class action waivers in consumer finance contracts. Many retail installment sales contracts require arbitration … Continue reading

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Dealership Arranged Financing: The Indirect Auto Lending Process


By Greg Johnson. This article addresses the indirect auto lending process (a/k/a “dealer arranged financing”). While the article relies heavily on cases I have defended for dealerships here in Minnesota, the same process is involved across the nation. In Minnesota, … Continue reading

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Auto Dealer Risk Management: Negotiating Dealer-Lender Agreement Terms


By Greg Johnson. Car sales are booming and lenders are clamoring for indirect financing business.  Now is a great time for dealers to dust off and review their Dealer Agreement (a/k/a lender master financing agreements) with lenders, particularly the warranty, … Continue reading

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