Dealership Legal and Regulatory Compliance

PREREQUISITE:  None

This course examines state and federal laws governing dealership operations, with an emphasis on F&I compliance, ethical sales practices, and consumer protection regulations.  It also prepares students for the Association of Finance and Insurance Professionals (AFIP) certification exam.

This course examines the legal, regulatory, and compliance environment governing automotive dealerships, with particular emphasis on finance and insurance (F&I) operations, ethical sales practices, and consumer protection. Topics include major federal, state, and local laws and regulatory agencies affecting automotive retail, such as the Federal Trade Commission (FTC), Truth in Lending Act (TILA), Equal Credit Opportunity Act (ECOA), Fair Credit Reporting Act (FCRA), and state motor vehicle and consumer protection agencies. Students analyze dealership finance and insurance operations, including credit evaluation, leasing, lender relationships, product offerings, compliance requirements, and internal controls, with emphasis on regulatory compliance, risk management, and the strategic role of compliance in dealership financial performance. The course also prepares students for the Association of Finance and Insurance Professionals (AFIP) certification exam.

UPON COMPLETION OF THE COURSE, THE STUDENT WILL BE COMPETENT IN:

• Analyzing federal, state, and local regulatory frameworks governing automotive retail and consumer finance and evaluating their implications for dealership operations, finance and insurance practices, and regulatory compliance responsibilities.
• Evaluating the structure, roles, and operational workflows of dealership finance and insurance (F&I) departments and assessing how these processes support compliant and profitable dealership operations.
• Assessing dealership consumer financing, leasing, and deal structuring processes to determine how credit evaluation, contract design, and financing alternatives affect regulatory compliance and financial outcomes.
• Applying federal consumer protection regulations, including the Truth in Lending Act (TILA), Fair Credit Reporting Act (FCRA), and Equal Credit Opportunity Act (ECOA), to dealership financing transactions to ensure proper disclosure, documentation, and regulatory compliance.
• Evaluating finance and insurance products, including service contracts, GAP insurance, and ancillary offerings, to assess regulatory compliance requirements, ethical sales considerations, and their impact on dealership profitability.
• Assessing dealership lender relationships and indirect financing processes, including lender agreements, approval workflows, and deal funding procedures, to evaluate associated compliance, operational, and financial risks.
• Evaluating dealership compliance management systems and internal control structures designed to monitor regulatory adherence, documentation accuracy, and operational accountability within finance and insurance operations.
• Applying ethical decision-making frameworks and regulatory governance standards to dealership finance and insurance scenarios to promote responsible sales practices and consumer protection.
• Assessing dealership regulatory risk exposure and the potential operational, legal, and financial consequences of non-compliance with consumer protection and lending regulations.
• Analyzing dealership compliance data and regulatory indicators while applying AI-enabled and technology-based monitoring tools to support compliance oversight and risk detection.
• Assessing the operational, financial, and strategic implications of emerging regulatory changes affecting dealership finance and insurance operations and evaluating organizational responses to evolving regulatory environments.
• Interpreting dealership compliance audits, regulatory findings, and monitoring reports to identify compliance gaps and recommend corrective actions.

ACQUIRED SKILLS

• Analyze dealership regulatory and compliance frameworks affecting automotive retail operations
• Evaluate finance and insurance department workflows, controls, and responsibilities
• Apply federal and state consumer protection and lending regulations
• Assess regulatory risks related to dealership lending, leasing, and insurance products
• Evaluate internal control systems designed to ensure compliance
• Interpret dealership finance and insurance compliance metrics, audit findings, and regulatory risk indicators
• Analyze lender relationships and financing alternatives
• Apply ethical decision-making frameworks to compliance scenarios
• Evaluate regulatory enforcement risks and mitigation strategies
• Implement analytics and AI-enabled compliance monitoring tools to support dealership compliance processes and regulatory risk management.