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CHOKING DOWN SOME ALPHABET SOUP
It's easy to focus on the big headlines and buzzwords like the FTC, CFPB, FCRA, GLBA, but sometimes the stories that don't make as much noise are just as important.
We recently came across a Department of Justice announcement about a dealership that agreed to pay more than $137,000 to resolve allegations that it mishandled vehicle leases involving servicemembers protected by the Servicemembers Civil Relief Act (SCRA).
Whenever we see a dealership facing enforcement action, we pay close attention. We ask ourselves what went wrong, whether it could have been prevented, and how our clients can avoid finding themselves in a similar situation. In this case, it reinforced the importance of understanding the SCRA, which is why we include a dedicated training course on the topic in Training Unleashed.
In addition to the large settlement amount, what really caught our attention was this statistic:
Since 2011, the Department of Justice has obtained more than $489 million in monetary relief for over 152,000 servicemembers through its enforcement of the SCRA.
Take a moment to think about that. Nearly half a billion dollars.
That number tells me the SCRA isn't an obscure law that regulators have forgotten about. SCRA enforcement has been an ongoing priority for years, and dealerships that lease or finance vehicles should pay attention.
Understanding when a servicemember can terminate a lease, when a court order is required before repossessing a vehicle, and what refunds must be provided isn't just good customer service. It's a legal obligation.
If you're not sure whether your team understands its obligations under the SCRA, now is the time to act. Reach out to Ignite at info@ignitecp.com to review your policies, evaluate your current processes, and make sure your team is receiving the training they need to stay compliant.
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