We are sending fraud alerts with disturbing regularity. Regardless of whether your dealership has encountered one of the individuals we’ve written about, we hope that you are contemplating internal procedures to identify fraudulent purchase attempts, such as this one:
Two individuals approached a Boulder dealership to buy a vehicle. They provided a $3,000 hold check that later bounced. Additionally, the individual provided pay stubs for a previous employer where he no longer worked.
After verifying the check and employment, a third party shared with the dealer that this was not the first time for this individual and a belief that he may have a criminal history of some length.
The individual in question has a Colorado Driver’s License that reads Eric McCarthy. It states a date of birth of 1/2/80 and lists a residence in Iliff, CO. Iliff is northeast of Sterling, so this notice is designed for the entire Metro area and northern counties. His accomplice appears to be using the name of Rebeka Miersen.
If you encounter these individuals, please contact Matthew Groves (303.968.8561), so we can track their movement at dealerships throughout the state.
Termination of records retention policy
Over the past 12 months, I’ve had dozens of conversations about records retention. In 2011 and again in 2014, we issued a records retention policy that a CPA developed to give dealers an idea about how long they should keep files. We no longer make such a document, as it was negated by a 2018 consumer privacy law, which carries the force of law and pre-empts the accountant’s recommendation.
Our current version of the privacy law says (it is subject to change this year) that a dealer must destroy or redact any personal identifiable information as soon as it’s no longer necessary for the dealer to hold. We have inquired several times with several agencies for a definition of ‘no longer necessary’ in light of our ongoing warranty and recall obligations, without response.
Our baseline principle is that we cannot throw away information if there is a legal requirement to retain it. We have five such incidences in Colorado law.
R.S. 42-9-104 (2)(IV), part of the Motor Vehicle Repair Act, requires work orders from the service shop to be maintained for at least three years.
R.S. 42-9-108 applies the same three-year standard to customer invoices in the service shop.
R.S. 5-2-304, part of the Uniform Consumer Credit Code, requires the records pertaining to any loan need not be preserved for more than four years after making the final entry relating to the loan.
R.S. 84-103, part of the Wage and Hour Act, requires that pay information for employees shall be kept three years after the compensation is due.
R.S. 39-26-116, the Sales and Use Tax Code, require every person selling goods under a license to retain sales records for three years, including books, invoices and other records.
Toward the end of a two-week deep freeze, we still had four donations last week. Thank you to these dealers who braved the cold and generously donated vehicles!
Now that the temps are more seasonal, check out the inventory on your lot and donate any of those old, high-polluting vehicles to the Foundation today!
The year started off strong with a compliance webinar that could affect your bottom line, followed by one that details the ins and outs of buying or selling a dealership. If you missed these webinars, you can stream them through CADA's Education on Demand.
If you're not sure whether your Service Department is up to date with all the new laws that were triggered with the page turning to January 1, check out the on-demand webinar, Under the Hood: Service Department Legal Compliance.
And whether you've been toying with the idea of selling your dealership or buying another one, before doing anything, discover how to avoid the common — and not-so common — pitfalls through the on-demand webinar, Automotive Buy-Sell Transactions from A - Z.
Austin Consulting Group has been doing business with dealers in Colorado for 30 years; a few of our consultants live in Colorado. I live in Breckenridge.
How does your company align with the auto industry?
ACG provides third-party property/casualty and F&I consulting to franchised automobile dealerships nationwide (ACG Dealer Advocacy Services). ACG represents more than 500 franchised dealerships nationwide with our services. We do not sell property/casualty insurance or F&I products.
What makes your company stand out?
ACG's Dealer Advocacy Services bring an agnostic approach to our partnership with dealership clients. ACG solicits bids from property/casualty and F&I vendors on our dealers’ behalf. We help dealers source the best property/casualty pricing/coverage and F&I Product/reinsurance structure for their store(s). Our services are fee based.
What is the greatest motivating factor for your company?
ACG's allegiance lies strictly with our dealer clients. Our fee-based property/casualty and F&I advocacy services bring valuable third-party expertise and objectivity to a dealership's largest fixed expense (insurance) and largest profit center (F&I). Being agnostic, we help our dealers choose solutions that are best for their stores.
Fun fact about your company
Roger Beery, ACG's Founder, ran a marketing campaign (The Insurance Warriors) using Conan the Barbarian with his face 30 years ago. It still connects dealers with the ACG brand today.
For more info about Austin Consulting Group, contact:
For information about any Endorsed Providers' products or services, contact: Marsha Temple 303.457.5123 office | 303.589.3801 mobile
Do You Know Who You're Hiring?
You’re looking to bring on a new employee, and your prime candidate looks great on paper — plenty of experience, consistent work history, and ideal professional credentials. But, how much do you really know about the applicant? Before making an offer, where appropriate, consider checking their background to help you understand who you’re adding to your team.
The cost of the wrong hire
What could go wrong if you don’t perform appropriate background checks on your potential employees? Best case scenario: nothing. Consider these other potential scenarios that could have more severe consequences for your business.
A driver with a history of serious traffic incidents causes a fatal crash and lands your business in a lawsuit.
A technician with a significant and serious criminal record stole from a customer’s home, which led to a negligent hiring lawsuit.
An office worker with poor credit history and access to company finances skimmed money without anyone realizing until months later.
It’s hard to put a dollar amount on hiring a candidate who’s not right for the job — or worse, a candidate who commits a crime against your business or your customers. But HR professionals have estimated costs can reach the hundreds of thousands1. And, on top of the financial costs, a bad hire wears on management, can hurt team morale, and generally be a drag on company resources.
Writing a policy that fits
A one-size-fits-all background check policy does not exist. If you’re interested in creating a new policy or revamping one you already have, first consider your business’s needs and discuss with your attorney any laws or regulations that may apply to your business in creating such a policy.
Will your employees be driving? If so, consider whether a motor vehicle record (MVR) check might be appropriate. Does drug use affect employees’ safety and performance on the job? Then, where appropriate, consider drug testing. Will your employees be working directly with customers or entering their homes? Where appropriate, a criminal background check could reveal a history of violent or property crimes. Do you need someone to help handle money or have access to customers’ private information? Where appropriate, a credit check could help you recognize an elevated risk of fraud, theft, or embezzlement. Whatever you decide to do, have your policy reviewed by an attorney to ensure it follows federal and state laws and regulations.
While there’s no guaranteed way to avoid making a bad hire, one thing is sure: it’s always better to appropriately screen job candidates before they join your team.
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