Today, more than 150 million F&I products sold by dealerships, purchased by consumers and funded by auto lenders are in-force. More than 30 million of these products are cancelled each year due to early termination of the finance agreement. Federal and state regulators have intensified their examination of auto lending practices relating to F&I products. Several public cases have shown the reputational risk faced by lenders when F&I product cancellation refunds to consumers are not handled properly. A successful approach requires that lenders, dealerships and F&I product providers work together to improve their internal processes and technology tools for the benefit of their mutual consumer customers.
Takeaways: - Best practices used by lenders to increase and accelerate recoveries of F&I product cancellation refunds
- Examples of industry-wide collaboration between lenders, F&I product providers and dealerships
- Steps that lenders are taking to strengthen their compliance programs relative to F&I products
