CXM Flashcards
Which customers should receive a Credit Score Disclosure Notice and when should they receive it?
All customers who are purchasing credit that have not or will not receive an Adverse Action Notice. It should be provided before they sign the RIC.
At what point in the sales process do customers receive the Credit Score Disclosure Notice?
Customers must receive the Credit Score Disclosure Notice before the customer signs any retail installment paperwork (accepts credit offered).
How are Credit Score Disclosure Notices generated ?
The notices are generated by the finance portal and may be printed by the user after the customer’s credit is run.
How can you tell if a customer is receiving a Credit Score Disclosure Notice?
By reviewing the dashboard, you can tell if the customer’s notice has been printed.
What is the procedure for cash deposits?
Reference training for LKE deposits.
When taking a credit card for payment, what steps do you complete to help mitigate future chargeback concerns?
Confirm understanding of Group Standards for credit card procedures and its impact on chargebacks, such as the credit card name matching the buyer, comparing signatures (if card not dipped, or dipped without PIN), Visa/MC declines, etc.
What is the procedure for receipting credit card payments?
There should be a process which logs the payments and ensures proper receipting to the proper unit and customer.
When can you take a CC as a down payment on a finance sale?
Preferred lenders preferences are documented on the HUB for reference.
In what situation is copying a credit card acceptable?
Copies of credit cards should not be made.
What is the process to determine if a phone number is on the “Do Not Call List”?
“Check the number against the “No Call Lists” using the Do Not Call Tool available within Salesforce. The tool will check each number against the Federal No Call List, applicable State No Call Lists, and the Enterprise Company Specific No Call list. If the number is on any of the lists, the consumer may not be contacted, unless their is a prior business relationship existing with that customer.
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What do you do if a customer specifically asks not to be contacted via telephone?
If a customer specifically requests not to be contacted, their number must be added to the “Company Specific No Call” list via Salesforce. This applies to consumers even if they are not on the Federal or State No Call Lists.
What question do you ask a customer when trying to identify how to complete the Reg B portion of the credit application (joint / single, etc)?
Questions like “Will your spouse also be on the application? or Do you have a co-signer?” should never be asked as they are a violation of ECOA. The appropriate question for this is, “Will there be any additional sources of income?”
When you can’t remember if you gave a customer an adverse action notice, how can you find out?
When logged into the finance portal, you can review each customer’s electronic folder to see if it was printed. If it was not printed, you can click through to print it and mail it or provide it in person as necessary.
When should you give the customer an Adverse Action notification?
An Adverse Action Notice should be given whenever you cannot offer a customer financing on terms requested - either because of your own assessment of the likelihood of financing or because you can’t get a finance source to buy a contract. They need to be issued within 30 days of the credit inquiry, or as required by state law.
Please describe your Adverse Action procedure.
Use the ‘Print Adverse Action’ link in the finance portal. The printed form will be stored in the dealer portal customer folder. Mail the form to the customer within 30 days of the day the transaction was initiated or the application was taken.
What should you do if a customer asks for specific reasons for the adverse action?
We recommend that you respond to verbal requests for specifics regarding the adverse action by telling the customer that “We would be happy to provide additional information regarding the adverse action. We will confirm the reasons in writing. Please confirm the spelling of your name, your address and phone number.” Generate the Adverse Action form from the Dealer Finance portal which provides additional details regarding the reasons for the adverse action. * The specific response should be completed and mailed to the customer within 30 days.
A customer applies for financing and requests a $450 monthly payment. You structure the sale to meet the payment term requested. After submitting the application to the preferred lenders, all decline to purchase the contract that would result in a $450 monthly payment. One preferred lender counter-offered a $500 monthly payment. When you offer the new terms to the customer, the customer rejects them and does not purchase the car. Is an Adverse Action notice necessary?
This situation requires an adverse action notice, because you have declined to offer the customer an opportunity to purchase the car at $450 per month and the customer rejected the counter offer.
A customer purchases a vehicle and wishes $15,000 to be financed. Based on the customer’s credit report and credit application, you proceed with selling the vehicle prior to approval from a financing source. Along with the regular paperwork, the customer signs a conditional delivery agreement. You cannot secure an approval on the customer’s contract and have to execute the conditional delivery agreement, requiring the customer to return the car. Is an Adverse Action notice nescessary?
This situation requires an adverse action notice, because you declined to offer the customer credit
Name the acceptable reasons for a variation from the 2% finance rate markup policy.
- Bank Imposed -Financial institution conditions the sell rate at less than 2%, the credit offer limits the customer’s monthly payment amount, a flat rate is chosen OR State usury rate limits markup amount. 2. The customer had a competitive approval from another financial institution
Please describe the process for documenting a variation from the 2% markup policy.
Accurately complete the buy/sell rate in eF&I, complete an Exception Rate Justification Form in eF&I and retain the appropriate documentation as backup for the justification reason (bank call sheet, pre-approval from outside lender, etc.)
How do you inform your customers which financial institutions are available to them and which ones you might be sharing their information with?
A list of all of the Financial Institutions with whom we do indirect financing should be visible to a customer when applying for credit. It can be posted or available for review via laminated documentation.
What forms can be used to collect a customer’s credit application?
The R&R universal credit application or Dealer Financing Portal form should be used.
When in the process do you obtain a credit bureau for a customer?
Customer must show intent to finance. This is done with a signed Buyer’s Order or Credit Application.
Are customers allowed to leave the office with a copy of their credit report?
Customers should never leave the dealership with a copy of their credit report. The dealership may supply them with a website or phone number of a credit bureau to contact.
