Biweekly Payment Provider Bulks Up Compliance Practices
ORLANDO, Fla. — US Equity Advantage (USEA), a provider of biweekly loan processing for the automotive industry, has added two new components to its compliance practices: a code of ethics and certification test for dealership partners. They are designed to further enhance the consumers’ understanding of the costs and benefits associated with the company’s biweekly loan payment services.
The code of ethics is an agreement signed by dealership finance managers. It is intended to demonstrate the commitment of their F&I personnel to operate in the customers’ best interests by fully disclosing in a clear and simple manner the costs and benefits of USEA’s biweekly loan payment services.
The certification test is an online exam for F&I professionals at dealerships to test their knowledge of USEA’s biweekly payment plan costs and benefits. They must successfully complete the exam in order to offer USEA’s products to their customers.
“The code of ethics and certification test represent a continuing evolution of our best-in-class business practices,” said USEA CEO Robert Steenbergh, who also serves as the company’s chief compliance officer. “With the recent regulatory attention given to biweekly payment products, it is more important than ever that we have practices in place that promote full and accurate disclosure of our products and puts the customers’ best interest first and foremost.”
The announcement follows a memo the National Automobile Dealers Association issued in May. It warned members that the FTC issued civil investigative demands to dealers in connection with the sale of biweekly payment products. It also cautioned dealers not to overstate the benefits of biweekly payment services.
“USEA is in lockstep with the National Automobile Dealers Association (NADA), which has advised its members to be aware of the specifics of the F&I products they sell and ensure their staff are properly trained to accurately disclose all fees and costs and not overstate any potential benefits,” Steenbergh said. “Our new compliance initiatives give USEA’s dealership partners the tools to do exactly that.”
USEA’s commitment to compliance also includes a fulltime compliance officer whose department is actively engaged in meeting all regulatory issues in the marketplace. These include adhering to state money transmission licensing in all 50 states, Bank Secrecy Act/Anti Money Laundering (BSA/AML) regulations, ACH network operating rules and guidelines, Electronic Funds Transfer Act (EFTA) requirements related to customers’ transactions, the Gramm Leach Bliley Act (GLBA) governing customer privacy and security, and Generally Accepted Accounting Principles (GAAP) including annual financial auditing.
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