Especially in these times of intensive regulator oversite, Automotive Compliance Consultants president Terry Dortch insisted that how your buy-here, pay-here dealership responds to customer complaints often determines whether the store’s good name gets blemished or a lawsuit results.

Viewed proactively, Dortch explained complaints can help BHPH dealers identify process and personnel weaknesses to be corrected.

Dortch acknowledged that every dealer knows about customer complaints. But if operators are not hearing them personally, he mentioned that perhaps a visit to review websites like Consumer Affairs will be enlightening.

Automotive Compliance Consultants has found that most review sites like this one contain a number of positive reviews, but their share of negative ones about various dealerships, as well.

Dortch wondered how many complaint reviews might have never reached social media had dealers responded to customer concerns more appropriately, expediently and kindly.

The firm emphasized that proper response to customer complaints is part of an effective compliance management system (CMS). This system describes correct processes for complaint follow-up and other best practices for ensuring BHPH dealership compliance with prevailing laws regulating the business.

“A dealer can have put into place the right practices to ensure the business operates according to these various laws, but if no set policy and responding practices are put in place for handling customer complaints, the CMS is broken,” Dortch said.

Automotive Compliance Consultants specializes in dealership and auto finance compliance, providing in-dealership consultations and analysis, compliance audits and training, and offers solutions for all compliance needs.

When establishing a complaint response system, the firm explained a dealership should consider:

• The types of complaints received, and how to categorize them. Those from a regulatory agency, and complaints regarding Equal Credit Opportunity Act claims should be placed in their own category.

• How complaints are to be received and by which individual or individuals within the dealership.

• How complaints will be documented, how information will be gathered about the complaint, information about the individual making the same, and each contact with the customer.

“Respond promptly and appropriately, whether in your estimation a complaint has merit or not, as certainly someone believes you violated their rights and certainly their emotions,” Dortch said.

“Ignore complaints or respond in a way that dismisses or demeans the customer and you’ll likely germinate a potential lawsuit,” he continued.

After receiving, logging and responding to complaints, Automotive Compliance Consultants recommended that BHPH operators use them to improve the business, as they likely point to:

• Weaknesses in sales and finance processes

• Employees that may be exposing the dealership to risk

• Needed improvements in customer handling

• Broken compliance practices

• Need for remedial employee compliance training

The Automotive Compliance Consultants staff has extensive experience in the retail automotive industry and focuses exclusively on dealership compliance issues.

For more information, contact Dortch at terry_dortch@compliantnow.com or visit www.compliantnow.com.