Who is Filling In the Customer’s Credit Application?
In a recent story, Automotive News reported on an informal online survey of F&I managers in which 29% responded that salespeople or sales managers fill in credit applications for customers at their stores. They’re just trying to help the customers fill them out the right way. What could go wrong? Plenty.
What happens if a customer claims that the income or time on the job shown on the...
Why Applications Matter
It does not matter whether you are filling out a financial services application or an insurance application for your first or tenth time. Pay attention. Applications matter. That is especially the case when the representative you are dealing with says that they aren’t really that important or that the representative will fill out the application for you. Here’s why.
We all know about the...
Used Car Damage – Are You Checking
Many dealers assume that if they simply pull a vehicle history report and it shows no damage, that they are safe in assuming that the vehicle has no serious prior damage. This is simply not the case, however.
Even the operators of vehicle history report providers give disclaimers that the vehicle history reports they sell may not contain all important information concerning a vehicle’s...
The Employee Handbook – No Longer an Option
Some dealers refuse to adopt a personnel handbook. They ask, “Why tell employees their rights?” Any dealer asking that question does not understand the purpose of a handbook.
A handbook should advise employees what is expected from them. It should establish the standards of conduct that the dealer expects. It is an excellent vehicle to describe the dealership’s philosophy and the expectations...
IRS Updates Form 8300
The IRS has revised Form 8300 for reporting receipt of cash in excess of $10,000. The revisions do not appear to affect the two pages of the form that are filled in by a dealer. The changes appear to be limited to minor editorial revisions and revisions to the instructions concerning taxpayer identification numbers.
The form does, however, mandate that it is the version to be used for...
Structured CD Offerings and Elderly Financial Customers
The current financial atmosphere has resulted in very low interest rates on savings and investments. Elderly customers are finding this to be a real problem. What do you do when a bond is called early or when a CD comes due? Some banks and financial institutions are offering what they call a structured CD. It promises higher interest rates than current CD products, and it comes with FDIC...
Avoiding the Tax Man’s Revenge
Taxes! Everybody hates them. And as a professional who spent years in school earning your credentials, you have more reasons to hate them than most. You didn’t luck into a six figure salary. Your life was consumed getting there – interminable schooling fueled by endless loans, followed by years of jobs to learn your craft at meager wages. You worked hard to earn a salary to compensate for your...
Annuities for the Ages
You are quickly approaching or even past acknowledged retirement age. You wonder what happened to the rich investment returns when you were younger. Bank accounts, money markets, and CDs are paying almost nothing. There are higher returns available, but the continuing financial turmoil makes the risks of investing in the stock market, junk bonds, and real estate at your stage of life...
Defining Liability for a Faulty Defined Benefit Plan
You have a new client named Allen. Allen worked his whole life to build his small successful business that now has five employees. He saved every dollar he could, and he invested very conservatively in anticipation of retirement.
Allen comes to see you and tells you a story that is disquieting. A few years ago, he was at the country club and played a round of golf with a happy, friendly...
Breach Of Contract Legal Remedies
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Breach of Contract Definition
Legally binding contracts usually involve two or more parties who initiated an agreement. In a legal context, when one or more of the involved parties fails to fulfill any one of the contractual obligations, a breach of the contract has occurred. A breach may have occurred if any party partially or completely neglects to perform their duties in accordance...