It’s no secret that auto lenders are living in a more regulated space as a result of increased speculation from the Consumer Financial Protection Bureau, and when regulators come knocking it’s essential to be prepared.
Rich Miller, head of compliance at Hyundai Capital America, shared some of his top do’s and don’ts to help lenders tackle compliance exams head-on during an exclusive interview with Auto Finance News at the Auto Finance Risk & Compliance Summit earlier this month.
Don’t Wait for a Notice to Start Preparations
The best thing to do, Miller said, “is to start preparing now, even if you haven’t received a notice.” Create an examination book, “which is basically identification of your subject matter experts,” and start identifying the documents that will be needed for the exam, he added. The key message is to get the company and staff prepared for an exam who are not expecting it.
Keep Management Informed at All Stages
It’s important to keep management informed throughout the entire process, “especially federal exams at each stage, which can last several months,” he said. “Make sure everyone knows what to expect, because the better informed they are, the better job they will do.”
Don’t Ask for an Extension
When you have an exam coming up, do not ask for an extension “unless absolutely necessary,” Miller said. An extension is something lenders will want to save for later and use when it’s needed.
Miller also gives an update on Hyundai Capital’s top priorities, provides an update on the company’s compliance training re-branding, and talks about the benefits of attending AFRCS each year.
Check out the full exclusive interview in the video below.
