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Financial professionals often use certifications on business cards, internet portals, and the like to support their expertise. Whether it is CFP (Certified Financial Planner), CSNA (Certified Special Needs Advisor), or CSP (Certified Succession Planner), the abbreviations suggest a course of study, a test, or a series of tests successfully passed.  But is this financial alphabet soup of...

On June 7, 2012, the FTC announced that it had agreed on terms of a consent order with a Georgia Toyota dealer stemming from the dealer’s failure to maintain adequate control of its customer information as required by the FTC Safeguards Rule.  The FTC charged that the dealer had violated its Safeguards obligations by having peer-to-peer (P2P) software onto its computer system. The effect of...

Have you wondered why industry publications are writing with increasing frequency about the expected demise of finance “markup”?  The answer is simple – proponents of dealer flat fees are working to sell the concept that “markups” are evil to regulators like the federal Consumer Financial Protection Bureau and the Federal Trade Commission with the hope that they will take action.  So what...

Dealers: You must take audits very seriously. From reports around the country, franchisors have been increasing their audit activity. Of special concern are vehicle exports – vehicles that you have sold that wind up in another country. Some states have taken steps to give you rights in connection with export audits. They have required that in any export case, a franchisor must show that the...

There has been significant publicity recently about Ford Motor Company’s ultimatum to Lincoln dealers. According to reports, if they want to remain Lincoln dealers, they must invest an average of $1 million to upgrade facilities. Not to handle the cars that Lincoln now builds, mind you. But in the hope that Ford can introduce vehicles that compete with world-class luxury cars now on the market...

For the last two decades, dealer doc fees and processing fees have been hot button issues for plaintiff lawyers seeking to sue dealers. As recently as a month ago, the Supreme Court of Arkansas issued a decision that a dealer who is paid doc fees for filling in forms is engaged in the unauthorized practice of law. Most states are not in expansive as the definition of the practice of law as...

Every smart business owner wants to maximize profits and minimize taxes. Tax planning to minimize taxes is simply a sound business practice. However, small business owners should beware of “too good to be true” sales pitches from the local insurance agent or CPA because certain tax-savings options can actually generate more – and more expensive — tax issues. A business owner wants legitimate...

When was the last time you checked your open account with your manufacturer? When was the last time you checked other accounts, such as a co-op advertising account? The franchisor open accounts should be reconciled monthly. It should be a regular part of the controller’s month end duties. Why? Very simply, there is a great deal of money credited to and debited from those accounts. Are you...

You generally want to know the qualifications of the professionals with whom you deal. You generally like to know that your doctor went to medical school and that your lawyer went to law school. Why then, when you go into your bank and you are solicited to purchase financial products, do you assume that you are dealing with a qualified professional? Banks are important components of our...

Dealers generally assume that a customer who leases a vehicle will have the right to buy it at the end for the residual value. That is not always the case. Pricing for a lease is generally based on three pieces: the residual which is the unamortized portion of the lease at which the lessor will own the vehicle if the buyer simply allows it to terminate, the upfront payment which is the amount...