Dealers Have New Tool for F&I Compliance

West Coast auto dealers have a new tool in maintaining F&I compliance, with the launch of a legal library designed to help manage risk and provide common defenses in litigation.

The LAW California F&I Library is a comprehensive catalog of standardized, legally reviewed finance and insurance documents for California dealers, launched late last week by the Reynolds and Reynolds Co. and the California New Car Dealers Association.

The library is an outgrowth of a strategic alliance formed between Reynolds and the CNCDA in October 2011, Reynolds reported.

“In today’s constantly evolving regulatory environment, automobile dealerships, state agencies and financial institutions continue to look for ways to ensure appropriate levels of compliance and to gain efficiencies in their F&I processes,” said Jerry Kirwan, senior vice president of Document Solutions at Reynolds and Reynolds. "The LAW California F&I Library is a big step forward in helping dealerships manage risk and maintain compliance, while also streamlining the F&I process.”

The library was developed, and will be maintained by, Reynolds’ director of compliance Terry O’Loughlin and the CNCDA Legal Department, the company said. Additional project support came from Manning, Leaver, Bruder & Berberich; Rob Cohen of Auto Advisory Services; Robert Robards of Automotive System Analysis; and Hudson Cook, LLP.

CNCDA President Peter Welch said, “At CNCDA, one of our highest priorities is to help dealers reduce litigation risk by providing legally reviewed documents that help standardize the F&I process. The CNCDA board chose Reynolds for this project because they share the same vision and bring to the table the expertise necessary to create and maintain these standard documents. The LAW California F&I Library will be instrumental in helping California new-car dealers potentially reduce liability.”