If you are a dealership or a finance company that sells products such as GAP insurance, service contracts, credit life insurance, or other ancillary products, you may be wondering how to handle the situation when a customer pays off their loan early or trades in their vehicle.  In this blog, we will discuss why rebating products is critical for BHPH dealerships and finance companies.

Do you have to refund the unused portion of the product to the customer? How do you calculate the amount of the rebate? How do you report the rebate to the IRS and other regulatory agencies? And most importantly, how do you avoid getting into trouble with the Consumer Financial Protection Bureau (CFPB) for failing to comply with the rules and regulations regarding rebating products.

THE ANSWER TO ALL THESE QUESTIONS IS SIMPLE: You need a software solution that can automate the process of rebating products for you. Look no further than Deal Pack.

Deal Pack is an all-in-one software solution for used car dealerships and finance companies that handles every aspect of your business, from sales and financing to accounting and reporting. It includes a built-in feature that allows you to set up rebating products for any product you sell.  This feature automatically calculates and applies the rebate to the customer’s account when they pay off their loan early or trade in their vehicle. Deal Pack also generates the necessary forms and documents to report the rebate to the IRS and other regulatory agencies, and keeps track of the rebates for auditing purposes.

WHY IS THIS FEATURE SO IMPORTANT: The CFPB can investigate and punish any violators.

This feature is important because the CFPB fines dealerships and finance companies that don’t refund customers for unused products. The CFPB sees this as a consumer protection issue, and wants them to follow the laws on rebating products, such as Truth in Lending Act (TILA), Equal Credit Opportunity Act( ECOA), and Unfair, Deceptive, or Abusive Acts or Practices Act (UDAAP).

If you want to avoid getting fines and violations from the CFPB, and provide a fair and transparent service to your customers, you need to make sure you are rebating products correctly and consistently. The best way to do that is to use Deal Pack software, which has all the features and tools you need to manage rebating products with ease and accuracy.

Deal Pack software is designed to help you comply with the CFPB and other regulatory agencies, and to improve your collections and profitability. Deal Pack software is also backed by a friendly and experienced support staff, who are always ready to assist you with any questions or issues you may have.

Don’t risk losing money and reputation by failing to rebate products to your customers. Contact Deal Pack today and find out how their software can help you streamline your business and stay in compliance with the CFPB and other regulatory agencies. Deal Pack is the ultimate all-in-one software solution for used car dealerships and finance companies, and the best choice for rebating products easily.