Page 34 - GIADA Jan-Feb 2020

COMPLIANCE

Report: Inconsistent F&I Title Ad

Training Puts Dealerships Valorem Taxes

at Risk Going Down

By F&I Staff in January
By FOX 31 Staff

An F&I assessment tool created by KPA in big fines if the unsecured files violate the
finds that risk training for dealership Gramm-Leach-Bliley Act.
employees, while occurring in various When you go to pay your title ad valorem
forms across most, is inconsistent in terms “If you can’t see who hasn’t been trained or tax next year, you'll find a discount on
of which risks are addressed, the company what’s broken, you can’t plug any holes.” your total price.
announced.
Even more concerning, 21% of respondents The Georgia Department of Revenue
“We’re happy to report that training is don’t have up-to-date records of which says that the TAVT rate will be lowed to
happening,” said KPA District Manager employees have been trained on what 6.6% of the fair market value of the motor
Ryan Daly. “The vast majority of dealership risk area — making it nearly impossible vehicle from 7% starting January 1.
F&I departments are training employees to ensure that every employee has
on critical risk areas like Red Flags, received critical information to help them Additionally, the cutoff year for reduced
customer information security, ethics in understand their responsibilities and how TAVT rate (1%) for older vehicles changed
the workplace, and cash reporting.” to comply with policies to minimize risks, to 1989, so the reduced rate applies to any
Daly said. person who purchases a 1963 through
However, Daly added, not every dealership 1989 model year motor vehicle.
is conducting adequate training to address “If you can’t see who hasn’t been trained or
all the major risks faced by F&I departments. what’s broken, you can’t plug any holes — The changes come from the passage of
For example, 24% of respondents reported and the liabilities only start to compound Senate Bill 65 earlier in the year.
not having any training related to the from there.”
Federal Trade Commission’s Red Flags "We are excited to implement Senate Bill
Rule. The report was based on a survey of nearly 65 which ultimately reduces the TAVT
75 dealer participants. paid on vehicles by Georgians throughout
Additionally, analysts found employees the state," said Revenue Commissioner
at one-third of dealerships do not lock up To review it in full, visit kpaonline.com/ David Curry. "We look forward to
physical documents, creating a significant industry/dealer/the-results-are-in-how- helping put money back into the hands of
risk for customers, and one that can result your-peers-rated-their-sales-fi-programs n hardworking taxpayers." n

32 | GIADA Independent Auto Dealer JAN/FEB 2020