FORT WORTH, Texas -

AutoStar Solutions chief legal officer Steve Levine pointed out most dealers and finance companies are well aware of what he described as “big-picture” compliance safeguards they should implement into their collections efforts. But Levine also stressed that actually putting these policies and procedures into practice is another story.

With that scenario as a backdrop, Levine outlined three pieces of “big-picture advice” he has often heard in collections circles, along with details for making these objectives a reality.

“Compliance goals — whether they are for collections or another area of the business — often sound simple,” Levine said.

“Where dealers and lenders falter is getting caught up in operational needs and ultimately dropping the ball on legal obligations," continued Levine, who also will be a keynote speaker at Innovate 2015: The Independent Dealer Industry Conference, which is scheduled for September in Fort Worth, Texas.

“If you want to stay out of the crosshairs of attorneys and regulators, collections compliance is not just an option. There are certain imperatives you absolutely must follow. But it can be simple, I promise,” Levine went on to say.

— Vague advice: Develop a policy and procedure manual just for collections.

— What it means in real life: This document must set forth both operational expectations and the overall legal emphasis that each employee is responsible to know and follow the law.

“Don’t make it too complicated. The manual should be short, sweet and to the point. A smaller document is easier for employees to understand and follow,” Levine said.

“Plus, in the event of litigation, it won't be so cumbersome as to trip up employees,” he added.

Levine called the policy and procedure manual a company’s “Get Out of Jail Cheaper, If Not Free” card in the event of a legal challenge.

“You will be able to demonstrate that your stated company goal was to strictly follow the law, and that any deviation from that objective was an unintentional mistake,” Levine said.

“Thus, the problem can be limited to the failings of one employee rather than indicate a widespread company issue,” he continued.

—Vague Advice: Train your employees.

— What it means in real life: This might be the most troublesome spot for dealers and finance companies.

“In my experience, this is the area where companies most often fall short,” Levine said.

“You can have the best policy and procedure manual in the world, but it won't do you one bit of good if it's sitting in someone's desk and has never been rolled out to the collections floor,” he continued.

Levine recommended implementing a written training calendar to serve as a record of when every collector receives training.

“A collector should go no more than a few months without some form of training and reinforcement,” he said.

Since a lot of training happens one-on-one on the collections floor, Levine mentioned collections managers and supervisors must follow up and make a note in the collector’s file to show training was received. If possible, the collector should initial or sign the page, as well.

“If it isn’t written down, it didn't happen,” Levine said. “The plaintiff’s lawyers will always make that argument.”

Levine added that one of his larger clients built training into a monthly performance review meeting, which prioritized the issue in the minds of employees.

In another case, a small car lot with only a few collectors called attention to training by hosting a monthly brown bag lunch in which a pertinent training topic was presented.

— Vague advice: Regularly audit collection letters.

— What it means in real life: Levine explained this audit process must encompass all communications used to collect debt, including text and email. He pointed out the audit should uncover any “document creep,” or cases where more than one letter is used to accomplish the same thing.

“Not only is this wasteful and inefficient, but it creates risk if the letter content is incorrect,” Levine said.

Just like the training calendar idea, Levine suggested that companies should track every written communication, when it was last reviewed, and by whom. He recommended that managers also assess whether the letters take into account and complement call strategy and billing practices.

Levine also noted that an attorney or compliance professional should review any Article 9 letters, which concern repossession and its aftermath.

“There is nothing worse than losing twice, first when the customer doesn't pay and then again when you must pay that customer damages due to a statutory violation,” Levine said. “Proactive, regular reviews will avoid adding insult to injury.”

To get more in-depth, real-world knowledge on collections compliance, dealerships and finance company managers can join Levine and other legal experts at Innovate: The Independent Dealer Industry Conference, which runs from Sept. 20 through Sept. 23 in Fort Worth, Texas.

The event will feature more than 80 different classes — all 1½ hours long — that dive deep into compliance, collections, finance, accounting, operations and more.

“Innovate is the only show for independent dealers and lenders with two full compliance tracks, which by themselves cover 16 to 20 different topics,” AutoStar Solutions said. “In total, attendees will access more than $10,000 in legal insight for the price of admission.”

AutoStar expects more than 600 attendees at this year's conference, including major exhibitors and financial institutions that will showcase the latest dealership technology, best practices and industry solutions.

To view the full schedule or buy tickets, visit www.myinnovate2015.com