February 2015 Volume 29 Issue 2

Contents:

Dealership Operations: New Study

Discredits CFPB’s Fair Credit Test-

ing Method

Page 1

Dealership Operations: New Study

Discredits CFPB’s Fair Credit Test-

ing Method, continued

Page 2

Introducing Emily Harris, new RA-

DA DMV Administrator

2015 International Auto Show Infor-

mation

DMV and RADA Holiday Schedule

for February 2015

Page 3

New NYS Minimum Wage Poster

Information

Revised Employee Polygraph Protec-

tion Act Poster Information

Model Year 2015 Fuel Economy

Guide Available

Page 4

RADA Training Classes, Workshops

and Seminars Schedule for February

Page 5

Safe*T: Guidelines for Vehicle Lift

Safety

Page 6

Safe*T: Guidelines for Vehicle Lift

Safety, continued

Page 7

Health and Wellness: Getting

Through Outdoor Chores Without

Getting Hurt

Page 8

Visit Us Online

www.rochesterautodealers.org

Rochester Automobile Dealers' Association

2024 West Henrietta Road, Building #4

Rochester, New York 14623

(585) 272-7232

A new comprehensive study of more than 8.2 million auto loan contracts by the

consulting firm Charles River Associates concluded that the proxy method used by

the Consumer Financial Protection Bureau to measure for unintended discrimina-

tion in an auto lender’s portfolio is “conceptually flawed” and “inherently unrelia-

ble.”

The peer-review study, Fair Lending: Implications for the Indirect Auto Finance

Market, commissioned by the American Financial Services Association and re-

leased on November 19, found significant bias and high error rates.

The CFPB, which issued its guidance in March 2013, has used a proxy method to

support claims of unintended discrimination against—and extract settlements

from—auto lenders and to pressure auto lenders to change the way they compen-

sate dealers for originating finance contracts.

The study found that the CFPB’s methodology frequently misidentified the back-

ground of consumers and dramatically overestimated differences in dealer reserve

paid by different groups of consumers. For example, the CFPB’s method overesti-

mates African-American borrowers by 41 percent.

The study also concluded that the CFPB’s examination of differences in dealer re-

serve at the portfolio level is meaningless because it fails to account for legitimate

reasons for pricing differences at the retail level.

Dealers have also offered up an optional program that addresses fair credit risks.

Based on a fair credit risk mitigation model developed by the U.S. Department of

Justice in 2007 to resolve fair credit investigations of two dealers, NADA released

its comprehensive Fair Credit Compliance Policy & Program in January 2014.

When implemented, NADA’s program documents instances when dealers discount

interest rates and ensures the discounts are for legitimate business reasons, like

meeting a competing finance offer. Rather than require costly and inaccurate statis-

tical testing, the program controls for risk on the front end of the transaction.

Many dealers, including several large dealer groups, have implemented the pro-

gram.

(Continued on page 2)

Dealership Operations: New Study Discredits CFPB’s

Fair Credit Testing Method

By NADA Chairman Forrest McConnell III — December 2014

February 2015, Volume 29, Issue 2 Page 2

Meanwhile, the CFPB has repeatedly failed to fully respond to questions from Congressional Democrats and

Republicans urging disclosure of its testing methodology, which is lacking in the bureau’s guidance.

Based on this and other flaws in the guidance, 146 members of Congress—which includes 90 Republicans and

56 Democrats—have cosponsored legislation in the U.S. House of Representatives to rescind the CFPB’s 2013

guidance.

The bill, H.R. 5403, co-sponsored by Reps. Marlin Stutzman (R-Ind.) and Ed Perlmutter (D-Colo.), also requires

transparency and public input prior to the issuance of future CFPB guidance on auto lending. For more infor-

mation, visit nada.org/cfpb.

Moving forward, the federal government should consider promoting broad industry adoption of NADA’s fair

credit program, which addresses fair credit risks at the retail level while preserving competition in the market-

place.

Source: NADA.org/Director’s Column, December 2014

(Continued from page 1)

Dealership Operations: New Study Discredits CFPB’s

Fair Credit Testing Method

By NADA Chairman Forrest McConnell III — December 2014

http://register.staplesadvantage.com/c/s?RegFormId=332624

February 2015, Volume 29, Issue 2 Page 3

2015 Rochester International Auto Show Information

Introducing Emily Harris

New RADA DMV Administrator

The 2015 Rochester International Auto Show, Thursday, February 26th - Sunday, March 1st, at the Joseph A. Flo-

reano Riverside Convention Center, is fast approaching. Packets with Auto Show information pertinent to the event

for dealerships participating in the Auto Show will be emailed to Sales Managers and Office Managers on or about

February 3rd, so please check your email from RADA with the attachment.

Auto Show flyers, to be distr ibuted with RO’s and placed about the showroom, will be mailed (or delivered to

dealerships on the courier route) mid-month to the attention of the Service Manager. So please look for the flyer

packet and distribute the flyers to help promote the Auto Show.

Every make sold in Rochester will be on display making this the most complete International Auto Show ever!

More information about the Auto Show, the RADA/Rochester Rotary Sunshine Kids Gala on Saturday, February

21st, and the RADA Sneak Preview on Wednesday, February 25th, is available on our website at

www.rochesterautodealers.org.

See you at the Show!

We are pleased to announce the hiring of Emily Harris at the RADA.

She has taken over the DMV Administrator position previously held

by Sherrie Cambron.

Emily studied Business Administration at Finger Lakes Community

College. She has a strong background in customer service and has

held various management positions in the hospitality and retail

industries. She started her career in the automotive industry in 2013.

Her main focus in this industry has been on title work and building

strong, positive relationships with both new and used car dealerships.

Emily was recently married to her longtime partner, Patrick. They

have a 2 year old son, Alexander. She enjoys spending time with her

family, shopping and cooking.

She looks forward to speaking and meeting with you.

DMV and RADA Holiday Schedule for February 2015 The DMV will be closed on Monday, February 16, 2015, for Presidents Day.

The RADA will be open on this day.

February 2015, Volume 29, Issue 2 Page 4

New NYS Minimum Wage Poster Information

The 2015 Fuel Economy Guide has been released by the U.S. Department

of Energy and the Environmental Protection Agency and it is now available

for download or to order copies online.

By law, dealers must prominently display a copy of the 2015 Fuel Econo-

my Guide and provide it upon request by a potential purchaser.

The guide provides detailed fuel economy figures for vehicles, as well as

estimated annual fuel costs and other helpful information to prospective

buyers.

To download the complete guide or to order copies, go to http:/

www.fueleconomy.gov/ and to http://fueleconomy.gov/m/ for mobile de-

vices.

Model Year 2015 Fuel Economy Guide Available

Effective 12/31/2014, the minimum hourly wage has increased to $8.75 per hour.

New York State Department of Labor requires the current Minimum Wage poster to be posted conspicu-

ously for all employees to see.

The new poster is available from RADA. Please contact Maryellen with the quantity you need. Each poster

is $5.00.

Revised Employee Polygraph Protection Act Poster Information

In order to be in compliance with the current federal EMPLOEE POLYGRAPH PROTECTION ACT

poster, check the date on the bottom right-hand corner (as you face it).

The new poster should be dated Rev. Jan. 2012. If you do not have this revised poster, please contact

Maryellen with the quantity you need. Each poster is $5.00.

The law requires employers to display this poster where employees and job applicants can readily see it.

February 2015, Volume 29, Issue 2 Page 5

NYS Notary Exam Preparation Class

Pass the New York Notary Examination the first time! Wouldn’t it be nice to have a Notary Public on staff? Prepare

now to pass the Notary Public examination and obtain your New York State Notary commission. New York Notary

services are needed for many reasons and in many industries. Come learn from the New York Notary expert how to

pass the NY Notary examination and perform your Notarial duties with confidence. This is a great class for new,

veteran and renewing New York State Notaries who want answers to all those challenging notarization questions.

Finally, get answers to your Notary questions from the Notary expert, Gerrie Pierre-Fleurimond, National Notary of

the Year 2003.

Date: Friday, February 20, 2015 9:00 a.m. - 2:30 p.m.

Location: Hampton Inn and Suites Includes Lunch

1st Floor

7637 NY State Route 96

Victor, NY 14564

Cost: $129.00/Attendee

Note: Next Class is Friday, March 20, 2015

RADA Training Classes, Workshops, Seminars Schedule Contact Juan Canto @ 272-7232 or 831-9478 to register for classes or for information on all the classes offered

Recordkeeping OSHA 300 Forms Class

Establishments located in States under Federal OSHA jurisdiction must begin to comply with the new requirements

on January 1, 2015.

This course is designed to assist employers in identifying and fulfilling their responsibilities for posting and main-

taining OSHA’s records of illnesses and injuries. Practical exercises are designed to ensure that participants who

successfully complete this course will be able to identify OSHA-recordkeeping requirements, determine if an injury

or illness is work-related, and be able to complete OSHA's forms 300, 300A and 301.

OSHA’s revised recordkeeping rule includes two key changes:

First, the rule updates the list of industries that are exempt from the requirement to routinely keep OSHA injury and

illness records. Auto Dealers were once exempt from this requirement but as of January 1, 2015 they will be re-

quired to keep these records.

Second, the rule expands the list of severe work-related injuries that all covered employers must report to OSHA.

The revised rule retains the current requirement to report all work-related fatalities within 8 hours and adds the re-

quirement to report all work-related in-patient hospitalizations, amputations and loss of an eye within 24 hours to

OSHA.

Date: Friday, February 13, 2015 8:30 a.m. - 10:30 a.m.

Location: RADA

Cost: $130.00/Attendee

February 2015, Volume 29, Issue 2 Page 6

Guidelines for Vehicle Lift Safety

Vehicle lifts should never be operated without proper safety training, and manufacturer and facility safety guidelines

should be followed at all times. Here are some helpful basic vehicle lift safety guidelines to help prevent a dangerous

mishap.

Management Work Practices and Responsibilities

Training

Provide all technicians with proper training. American National Safety Institute requires all training be documented.

Training should include:

Information on the maximum weight for each lift Proper operation of all controls Proper vehicle spotting methods Lift safety features Rules for safe lifting Proper housekeeping procedures

Some sources for training are:

The manual supplied by the manufacturer A representative of the company that installed the equipment The Automotive Lift Institute (ALI) provides a variety of safety materials, including training videos and safety

inspection checklists.

Documentation & Labels

Ensure all necessary safety labels and instruction postings are in place. Inspect labels at least monthly to determine

they are not missing or worn making them unreadable. For a frame-engaging lift, a copy of the ALI/LP “Lifting

Points-Quick Reference Guide” should be kept nearby

Technicians Work Practices and Responsibilities

The technician, once trained, has a variety of responsibilities when operating vehicle lift equipment. The following is

a list of safe work practices:

Maintain a constant awareness of the many hazards involved with lifting vehicles. Be aware of activities in the lift area during operation. Never allow unqualified persons to enter the area. Wear the proper personal protective equipment. Safety glasses need to be worn when doing overhead work. In

some cases safety goggles, face shield, and bump caps may be required. Never exceed the maximum weight of the lift. Always use the proper designated vehicle lift points. Check the lifting points and adapters for damage or corrosion, and for wet, oily, or slick surfaces that may cause

slippage. Ensure the vehicle is properly centered and balanced. Position the vehicle so its center of gravity lies well within

the area bounded by the supporting points of contact between the lift and vehicle. Remove any item in the vehi-

cle that could affect the normal center of gravity. Raise the lift a sort distance and gently rock the vehicle to verify it is sufficiently stabilized before fully raising

the vehicle to working position. For long-wheelbase or short-wheelbase vehicles, it is good practice to position

high reach vehicle support stands under the vehicle. Ensure the lift locking devices (latches) are properly engaged. Use high reach vehicle support stands to assist in stabilizing the vehicle if heavy parts are to be added or re-

moved. Never lower a vehicle onto the vehicle support stand. Never try to stabilize a falling vehicle — get out of the way! Make sure the wheels are properly chocked on drive-on lifts. Only use equipment provided by the manufacturer.

Make sure the area is clear of people, tools, and equipment when lowering a vehicle.

(Continued on page 7)

February 2015, Volume 29, Issue 2 Page 7

Guidelines for Vehicle Lift Safety

Never try to alter or repair a lift. Immediately report any problems to your supervisor. Only trained professionals

are qualified and authorized to repair or modify the equipment. Never use the lift as a jack or for any other unauthorized purposes.

Lift Certification and Maintenance

Proper maintenance of this critical equipment not only can prevent accidents, but can also reduce the potential for

inefficiency. Failed equipment reduces the amount of vehicle repairs that can be accomplished in a timely manner.

The following should be considered:

New lifts should be ALI/ETL certified. Manufacturer’s guidelines for inspection and scheduled maintenance procedures should be followed. Technicians should be trained to inspect the lift daily for cracks, damage or wear. These inspections should in-

clude, but are not limited to: cables, sheaves, lift pads, adapters, lift arms, and welds. On surface-mounted lifts,

inspect anchor bolts and concrete floor around the mounting bolts for cracks. If defects are noted during the inspection, the technician should stop using the equipment and notify the

supervisor. Qualified contractors should be used to make all repairs. The repair contractor should have a written lockout/tagout procedure to ensure that the lift is not used or ener-

gized during the repair.

Source: awane.com

(Continued from page 6)

February 2015 Volume 29 Issue 2 Page 8

Rochester Automobile Dealers' Association

The R.A.D.A. Newsline

and The Title Clerk

Resource are published

by the Rochester

Automobile Dealers'

Association.

2024 West Henrietta Road,

Building #4

Rochester, NY 14623

Phone: (585) 272-7232

Fax: (585) 272-7375 www.rochesterautodealers.org

Brad McAreavy

President

Dick Stevens

Business Manager / Office Manager

Kim Guida

Director of Insurance

Pat O’Neil Field Service Representative / Safe*T

Program Coordinator

Juan Canto

Director of Training & Compliance,

Recruitment & Placement

R.A.D.A. Staff

Randy Spurr

Chairman

John Cortese

Vice Chairman

Steven Ralph

Secretary

Dan Edwards

Treasurer

R.A.D.A. Officers

Allyn Barnard

Michael Doyle

Randy Farnsworth John Gabriele

Ray Helfrich

Drew Hoselton Ed Meagher, Jr.

Mark O’Connor

Kevin Parker Dennis Petrisak

Jay Vanderstyne

R.A.D.A. Directors

RADA provides a full range of healthcare options, and employee benefit products and services for our members. Contact

Kimberly Guida at 585.272.7232 today for a complete benefit review.

Health and Wellness: Getting Through Outdoor Chores Without

Getting Hurt This article is for informational purposes only and not intended as medical advice.

Removing snow can lead to many trips to emergency rooms, visits to doctors’ offices, and time spent recuperating on

the couch. Avoid injuries by using a smart strategy.

Tips for snow shoveling or moving soil/digging:

Warm up your muscles first. Take 10 minutes and loosen your arms, legs, and back. Stretch or jog in place.

Pace yourself. Listen to your body. Don’t overdo it. Take breaks and dr ink plenty of fluids. If you experience

chest pain, shortness of breath, or other heart-attach symptoms, stop the activity and seek emergency room care.

Do not use a shovel that is too heavy or too long. Don’t place your hands close together on the gr ip. Space

out your hands for easier shoveling.

Use an ergonomic shovel which is typically much lighter .

Do not throw snow (or soil) over your shoulder or to the side. The twisting motion can stress your back.

Push the snow instead of lifting it. Each shovelful of dense snow can weigh some 20 pounds according to the

AARP. If you have to lift, bend your knees and lift with your legs, not your back.

Source: American Academy of Orthopedic Surgeons, Hope Healthletter January 2015

Sharon Dean

Communications / Website /

Administrative

Gloria Wolak Credit Insurance / Newsline

Editor / Events Coordinator

Lisa Luckner

Accounting Administrator

Emily Harris

DMV Administrator

Maryellen Knapp

Receptionist

Sherri Greif

Courier