Powersports lenders should know their data and compliance management systems “inside out and backwards” in order to prepare for increased regulation from the Consumer Financial Protection Bureau, said Mary Calkins, partner at Akerman LLP.
The CMS and consumer complaints are areas of the powersports industry that have not been subject to as much regulation as it’s likely to be in the future, she added. Lenders need to monitor complaints so they can be are aware of any concerns or issues before the regulator, she added.
While most of the CFPB’s attention is on the mortgage industry, rather than auto and powersport lending, that’s likely to change and regulation is expected to expand more into the powersports industry soon, Calkins said. “In my view, powersports is not going to be accustomed to this type of financial regulation but ought to be ready for it,” she added.
To prepare, powersports lenders should be more concerned with keeping the CMS up to date to avoid undue regulatory concern from the CFPB, Calkins said. “CMS is always up there as a concern, and with any lender, that’s an ongoing process,” she added. “As statues and regulations get updated, the CMS has to be updated as well.”
Akerman’s Calkins will participate as a speaker for Regulatory Compliance Update, a session at the upcoming PowerSports Finance 2016, Oct. 5 at Bellagio Las Vegas. Joining Calkins in the dual presentation is David Gemperle, partner at Nisen & Elliott LLC. The sesssion will provide attendees with an update on how auto finance compliance has leaked into powersports, staffing and training dos and don’ts, and lessons in proactive regulatory compliance.
PowerSports Finance 2016 will be held in conjunction with the annual Auto Finance Summit, which will take place Oct. 5-7, also at the Bellagio. For more information, visit www.go.powersportsfinance.com, or click here to register.