Video Recording F&I: the Pros and Cons
For the most part, the JM&A finance and insurance product service group encourages videotaping, on the premise that the camera doesn't blink.
December 1, 2006
For the most part, the JM&A finance and insurance product service group encourages videotaping, on the premise that the camera doesn't blink.
Dealership managers, however, should randomly review tapes for violations — and do it faithfully, according to JM&A.
“This can be a powerful tool for those dealers committed, at all times, to manage and maintain this process,” says Jim McDavid, a JM&A vice president.
But if a dealer is unable to locate a specific tape, that situation could support claims of inappropriate business practices by a dealership, he notes.
A number of dealers say they keep the tapes on file for about three years before purging them.
Here is a JM&A list of benefits and drawbacks of videotaping customer transactions:
Serves as a staff coaching and teaching tool.
Provides ability to audit F&I processes and staff performances.
Deters improper F&I activity; protects against identity theft, possible fraud.
Documents F&I staffers making solid presentations — and those who don't.
Allows dealership to review customer agreements in their exact words.
Documents customers who refuse to be taped; and possibly why.
Allows for excess discovery should a lawsuit arise — an attorney benefit.
Gives attorneys the power to review all tapes, not just one client tape.
Refusing customers may decide to leave the dealership, shop elsewhere.
Could lead to negative staff perceptions and reactions.
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