Reputation ManagementCommentary & Insights

If you are a dealer, when you get up and place your feet on the floor in the morning, you put your assets on the line, expecting a return or profit. It’s called “risk.” How you craft and hone your business practices and transact business daily, is what makes you different. Let’s talk about your daily risk because they are certainly “present,” even if you don’t think about them or see them. Risk is the degree of hazard you are willing to tolerate. How you handle risk determines your potential exposure to losses. There are three (3) kinds of risk: Preventable risk: These are risks that are controllable and should be able to be avoided or eliminated completely. External risk: These arise from events outside your dealership and beyond your control. Strategic risk: This is where your entrepreneurial spirit comes into play. A strategic risk is a venture which you embrace, in anticipation of a profit, with your taking on certain duties or responsibilities in order to accomplish your business plan. Said differently, this is a risk for you to earn profits and/or market share. You can control 2 of the 3 risk categories. For this article, let’s consider preventable risk where you can prevent problems at the store. What I see in my consulting business is dealerships could do a much better job handling customer complaints and disgruntled employees. How would you rate these the risk of upset customers and unhappy employees? Minor Moderate Major Severe Catastrophic Most dealers consider these as “minor” risks. My experience is different. To me, they can be “severe” or even “catastrophic” and should be treated as such. Let me explain. I’ve seen class action lawsuits against a dealership start with 2 women chatting in church. Unsatisfied and unhappy customers go to regulators, who end up finding problems and setting fines. Recently, these penalties range from $800,000 up to $27 million, including forced store closings. Unhappy customers can easily head over to the Motor Vehicle Dealer Board, who can vote to shut down the dealership resulting from 1 single complaint. If or when this happens, you risk the loss of your franchise. Inside the Sales and Service Agreements, most OEMs have clauses that indicate if a dealership closes for a (set) consecutive number of days, it is a clear default under the contract. What’s the “blue sky” value of your dealership today, and is that risk really worth taking? “It won’t happen to me” isn’t a business plan any more than if you are using “hope” to accomplish a goal. The “wait and see” approach is also reactive and lacks organizational structure. Being proactive is key. Consider installing more controls and monitoring mechanisms based on how you feel each identified risk corresponds to the 1-5 scale listed above. Triage the risks according to the most severe first. Assessing and controlling risk is a continuous process. (Insert attached graphic.) Outside of customer and employee problems, dealerships experience large risks in these 2 preventable areas, which we will use for illustration purposes: Unintentional advertising issues: Most dealers have mistakes on their websites. When was the last time you mystery-shopped your own website for advertising violations? Do you have a way to accomplish this? When customers feel “jerked around” by your advertising, they get upset. When they get upset, they go to lawyers and regulators. When lawyers and regulators get involved, they will inspect your business practices, including your website is absolutely low-hanging fruit for them. Here are two (2) biggest mistakes: 1. In your state, county, or city, are you allowed to have a “processing fee” or a “doc fee?” Which one? Does your disclaimer have the correct nomenclature? One or the other is provided by code, and you want to ensure you are using that terminology. 2. Do you have an asterisk (or equivalent) to tie your “sales price” to your disclaimer? If not, how is a consumer supposed to know that taxes, tags, and licensing fees are in addition to the sales price? Without the notation, federal advertising laws would dictate those fees are considered included in your sales price. While these 2 may appear nitpicky, they create potential class action exposure for your dealership and further regulatory concerns. Digital risk: 1. How tight are your infrastructure and your IT policies? There’s a dealer in northern Virginia facing a class action lawsuit right now over a large data breach. 2. The new Gramm Leach Bliley Act (GLBA) rules and regulations are onerous and require a concerted effort to be in compliance. Have you started your work here? The January 10, 2022 deadline has passed, and June 9, 2023, is coming up fast. (This topic is explained in another article.) As examples of preventable risk, a lack of forethought here makes your dealership vulnerable. These types of uncertainties can manifest themselves into real problems and potentially destabilize your dealership.  Consider a risk mitigation plan which covers these issues (and more) to ensure the continuity of your business and smooth daily operations. Risk mitigation is part of a robust governance, risk, and compliance (GRC) program.  Done well, this should contribute to the growth, profitability, and sustainability of the dealership. Thanks for seeing things from a Better Vantage Point.

I'll bet you one dollar ($1.00) you have this issue, too. When you're shopping at the market and see a food product that's "non-GMO," don't you stop and think about it? Follow my logic here, please. If it's "non-GMO," that means it's "natural," right? I mean, if it's not genetically modified, it's natural? So, if it's natural, that indicates it's "real food." So, they didn't insert not-real food into my food. Amiright? So, why do they feel the need to tell me that my food is made up of one hundred (100%) percent food? Why can't they just leave that off the labeling? Am I missing something here? I just want true and genuine food. Likewise, shoppers want a "genuine" dealership, not an artificial corporate one with no personality and a queue for everything. How do you translate this to action, so the customers feel what you are about? Let's just take one step today, and here it is: Respond to your online complaints like a human (and definitely not a robot) and invite the customers into the store to get their problem resolved. You cannot resolve these issues by communicating through postings on websites. All too often, I see dealers have "robo-responses" posted by real people telling the customers that the dealership is "sorry for their experience" and then offering nothing to the customer. Zero, zip, nada. What function is that fulfilling exactly? How does that help either the dealership or the customer? Even worse, I was recently at a dealership group in New England whose policy was to post something which said, "Please email xxxx@dealership.com and tell me your concerns." This was posted after the customers had just spilled their guts telling the dealership, and elaborating to the public, the very nature of the problems. At best, it appeared the dealership was insincere. The issue here is not just a reputational one. When potential buyers are scouring the internet, looking for where to purchase, they read these reviews to determine the genuine nature of the dealership. You really can tell the culture of a store by how its employees respond. So, responding to these reviews will help you sell units, too. I've seen it happen over and over again. Beyond this, an even better practice is when you have earned the right to ask the customer to "update" their review after you have fixed their problem. Here's what those updates should look like. And these are posted from the internet: "Previously, in a letter, I complimented the salesman yet slammed the dealership, which, in hindsight, was unfair since I never met Mr. Kline. After reading my letter, Mr. Kline was concerned enough about my feelings and thoughts about his dealership to invite me into his office and explain why I was so distressed. We listed my complaints and found that some were just anger on my part and unwarranted, yet some were justifiable. He fixed the ones that were justified. I guess the point I am trying to make is that he didn't have to do that. The owner of a corporation took the time to satisfy the concerns of one individual. I think that was great, and he'll have my business for life. Most times, you can get the help you need from the managers, and I'm not saying everyone should be running to the owner with every problem. It's just nice to know that Mr. Kline's door is always open. Thank you." Here's another: "At first, when I got the response back from Tom Kline, I did not respond back. I felt why bother if that is how his employees treat customers. I am sure it is the same way. Well, Mr. Kline kept calling, trying to settle this matter. Finally, he got a hold of my daughter, and we agreed to meet with him. I really did not want to, but my daughter said that it wouldn't hurt anything. I have to say that today I met with Tom Kline, and he was much different than what I accepted. He apologized, listened (truly listened to what I had to say and how I felt). He fixed the problem. I was so far off in my judgment about him, and I am glad that I listened to my daughter. I just knew that I would never use the dealership again for anything, but after dealing with Mr. Tom Kline, I have changed my mind. Thank you very much for your assistance and truly listening." Finally: "First, I want to thank Mr. Kline for his response. I was indeed contacted by Mr. Kline today and have set up a meeting with him soon. I must say any company that will take the time to not only listen to a customer but agrees to make it right is a place I want to do business with. I have never seen an organization except for the military to respond and address a problem so quickly. I look forward to working with Mr. Kline in fixing some concerns I have." There's nothing magical here, just good, old fashioned work. Fixing these complaints is money in the bank. And if you are not going to repair your customers' problems, the government will. Regulatory actions almost always start with unsatisfied customer complaints. Look at the recent regulatory actions against dealers resulting from upset and unresolved customer issues: Federal Trade Commission (FTC) Napleton Automotive $10 million Federal Trade Commission (FTC) Passport Automotive $3.380 million Commonwealth of Massachusetts Jaffarians Ongoing State of California Paul Blanco $27.5 million So, you can sell more units, have happier customers (who will continue to patronize your dealership), and avoid lawsuits and regulatory issues by controlling your online customer issues. By managing and overseeing these internet complaints, you are minimizing your risks and increasing your revenues. Now, that's a non-GMO deal if I've ever heard one!

Culture, Manifestation, and the Desire to do good "I have built a framework from the best of everyone I ever paid attention to, and I don't read many books. I don't have a lot of time," Art smiles as he explains that he has a simple paradigm that has defined the RepairPal culture, "the right person doing the right job." Art meets every person during onboarding to ensure this value system remains the focus and cites their approach to people as the reason they are a 2021 Inc Best Workplaces Honouree: "effective teams that are fully remote." The MAPConnected Vehicle Service and Warranty Lifecycle Summit 2022 is approaching. A collaborative conversation, led by some of the most brilliant minds in the industry, will be hosted by the Westin Southfield Detroit on the 25th - 26th of October. We had the opportunity to sit with Art Shaw, CEO of RepairPal .  The Art Shaw and RepairPal Journey "It is very simple; I am a poor kid, the first to attend college after high school in my family," Art explains that he paid his way through college, worked hard, and "got lucky." It was back in the 90s, and he had done well; he landed a job at Charles Schwab, where he stayed until 1999, eventually exiting as the Senior Vice President. After that, Art became the CEO, Board Director, or Founder of several companies ranging from management advisory to digital music distribution, artificial intelligence, and investment management. In 2012, Art took the reins at RepairPal, "I had learned that doing something I am proud of is important. Trying to help people is the foundation for running good companies, and I perform better in companies that are doing good for those around them."  "You can do good and do well," Art explains; he had learned early on in his career that there is a way to do right by the consumer while also building great companies and, by doing so, attracting great people and partners. "We have partners like USAA who work with us not just because of what we do but because of who we are," Art beams as he describes the relationships they have built through and with RepairPal. His time at Charles Schwab comes up throughout the conversation, and Art reflects on his time there with an unmistakable sense of pride and appreciation. The parallels experienced from a consumer trust perspective in both industries were clear to Art, "feeling empowered as a consumer" in a space that traditionally has a level of uncertainty attached to it means that you can build a great business if you have the right tool: "fair price for car repairs."  Through luck, Art had come across a team in auto repair who had a significant data set and the desire to do good, but the business was not sustainable. "I realized that like with Schwab, people were really afraid," the stats were overwhelming, and there was an opportunity to build trust. And so, Art went around San Francisco with the audit professionals who had built this dataset of "what's a fair price?" They went to different independent auto repair shops and asked a question that no one could answer, "your daughter is in Nashville, and her car breaks down. Where do you send her to get a car fixed?" Your car is built thousands of miles away, in Europe, Japan, or elsewhere in the States, and this is a tightly engineered ecosystem. A referral from a family member who knows nothing about cars or, even more specifically, cannot diagnose your car was the only overwhelming stat on how people were finding repair shops in an environment where trust was the issue. The relationships or connections people have with their cars are primarily accepted within the industry, but the numbers show that in 2022, people still don't know where to get their cars fixed. So Art created a brand with his team comparable to the hotel industry's quality standards. What was lacking in auto repair was knowing what you are getting at each price point.  "I was honored that the audit professionals came up with this paradigm that we call RepairPal Certified," Art explains, "for a trusted place to get your car fixed, defined by the level of quality which is not just what consumers want, but it is the right thing to do." Quality "So the first level is quality."  One of the things RepairPal does in terms of their quality standard is to make sure everyone is trained, "dealers pass easily, but independents don't always, and that's one of the biggest things: skills and training." Art explains that the next is the diagnostic equipment and high-quality parts. The second level is customer satisfaction, "and we do all sorts of interesting things around unbiased customer satisfaction." The third piece is the warranty, "if you're trained, and you satisfy customers and stand behind your work, we have a minimum warranty of one year, which all dealers pass."  "Interestingly, independents that fit our model and that are repaired by certified technicians have an average of two years or 24,000 miles in their warranty because they understand that's a sign of quality," Art shares. And then lastly, the final component, "that estimator that the team had built before, based on high quality with OEM MSRP and parts, and average dealer labor rates, not low, but what's a fair price with ranges, means that people can charge whatever they want, we don't control that," says Art, "if they want to charge outside of that range, they can't be Certified."  In terms of the work that RepairPal does with independents, it's mostly about quality. "They are pretty focused on being priced lower than the dealer. It's one of the ways that they increase their business," says Art, "in terms of dealers, they satisfy the quality standard already." So leaving the critical thing for dealers to focus on is price.  "We started with independents because it's a much wider range of quality, and that's the number one buying factor. So today, we have 3000 independents in our network, that's much bigger than any other chains," says Art. As a result, the RepairPal footprint is sizable, and they have grown a healthy website with 4 million unique visitors each month.  "We have 4 million people looking at service and repair. That's what we've done, and we've done that for 15 years," Art adds that the additional benefit pertains to those who are Certified becoming part of that online ecosystem, "so when you're Certified, you go up on our site. So when people come to us, 4 million of them, we help solve their problem by including you."  Price Once RepairPal had built a network of independents big enough, they talked to big companies that were in the car business, "for instance USAA has the highest net promoter score of any large company," says Art, "we presented them this nationwide network of trusted partners that we had already built, alongside an effective workflow, integrations, and technology to try to make it simpler across all these independent shops nationwide." Through the member network, RepairPal created a space where consumers can find a trusted repair shop with high quality, excellent service, and a fair price.  "This is great for brands, and we have a huge commitment to quality. The average net promoter score of independents in our network is 76," Art shares, "shops are happy to pay because they are getting incremental business."  People leave the dealer for servicing and repair. Four out of five customers leave the dealer over time, and the number one reason is price. The quality is excellent, the customer satisfaction is where it needs to be, and dealers stand behind their work, "so why are they losing most of their customers? Dealers are hardworking people who want to do good and earn a fair profit." Art highlights the objectives, "someone has to connect the customers to the dealers who are attentive to a fair price."  RepairPal has built what they call a "healthy, three-sided marketplace" Art says, "we have 3000 shops, most are independents, but we have recently started working with dealers." They have 4 million unique visitors to their site and 70 partners who rely on RepairPal to curate their trusted network, including dealers, for them. "We are on a journey to build out the dealer business," Art explains that the process includes certifying pricing through testing but that what they are already finding is that most dealers who are attentive to pricing qualify. "We use average dealer labor rates, OEM MSRP, and so if you build based on those inputs, you can become RepairPal Certified," says Art.  The beauty lies in the mechanism of trust that is established throughout the conversation with the customer. Having a third party certify fairness in pricing establishes trust between the customer and the dealer. "That conversation changes everything," Art says, "you are addressing the number one need, fairness." People know that dealers provide excellent service and a high standard of quality, but people also look to third-party sites for validation.  As we wrap up our conversation and discuss the longevity of dealers, Art and his team at RepairPal play a clear role, "there are a lot of ways to buy a car online, but when a customer needs repair work done, they still need to go to their local dealer." Art will discuss "Transparency And Trust: Overcoming Negative Price Perception" at the Vehicle Service and Warranty Lifecycle Summit at the Westin Southfield Detroit on October 25th and 26th. 

Three super-large dealership groups are trying it!   Here’s how it’s going for them so far… Carvana lost the ability to transact in Illinois according to  Automotive News  (May 16, 2022) because, “The Secretary of State's police department opened an investigation into consumer complaints about Carvana in February, (Henry) Haupt told  Automotive News . The investigation spans about 90 signed complaints, Haupt said. He said he couldn't provide an exact date as to when Carvana might see the suspension lifted.” According to a press release from the Texas Attorney General’s Office: “Texas Attorney General Ken Paxton filed a deceptive trade practices lawsuit against the online used vehicle dealer Vroom Automotive LLC and Vroom Inc., which also sells cars to Texas consumers under the name Texas Direct Auto. The lawsuit alleges that Vroom has misrepresented and failed to disclose significant delays in transferring clear title and obtaining vehicle registrations, burdening thousands of consumers. The State also alleges that Vroom has misrepresented and failed to disclose vehicle history and condition and terms of financing and approval—all violations of the Texas Deceptive Trade Practices Consumer Protection Act. According to the lawsuit, Vroom has not managed its growth effectively, leading to inadequate systems and procedures that have harmed Texas consumers.  Over the last three years, consumers have filed over 5,000 complaints with both the Better Business Bureau and the Office of the Attorney General against Vroom and Texas Direct Auto.”  According to the Federal Trade Commission’s (FTC) Press Release dated April 1, 2022: “The Federal Trade Commission and the State of Illinois are taking  action against Napleton , a large, multistate auto dealer group based in Illinois, for sneaking illegal junk fees for unwanted “add-ons” onto customers’ bills and for discriminating against Black consumers by charging them more for financing.  Napleton will pay $10 million  to settle the lawsuit brought by the FTC and the State of Illinois, a record-setting monetary judgment for an FTC auto lending case… A survey cited in the complaint showed that 83 percent of buyers from the dealerships were charged junk fees for add-ons without authorization or as a result of deception. One consumer cited in the complaint reported that the dealership located in Arlington Heights, Ill., charged him for nearly $4,000 in add-on fees after he’d paid a similar amount in down payment.” So, from the outside looking in, it appears these three (3) organizations do not have procedures in place to handle their customer queries, issues, and problems. So, by default, by attrition, or by apathy, they are ceding control and allowing the regulators to fine them and suspend them, thereby driving the dealerships to manage their own business affairs. (Good pun, right?)                                                                                                                 In the Napleton matter, a staggering 83 percent of buyers said Napleton took advantage of them. Let’s examine that statistic even further. In order to gather the information about the 83 percent, Napleton had to allow the FTC to have access to its customer files.  The FTC must have had quite a lot of leverage for Napleton to agree to give them that access.  Further, 83 percent cannot be simply “miscommunications” or “misunderstandings.”  It’s an astonishing number which cannot be explained away. Let’s keep this simple: Handle your customers or the government will.  

Oops, they did it again.  I just unpacked my new desktop computer, screens, camera, and enough cables for you, me, and every adult on the planet. (Well, not quite but definitely an abundance!) Along with my new goodies, I purchased, and I quote, the “Download Microsoft Office Home and Business 2021 All Languages Online Product Key License 1 License.” (Please note “Business” is part of the title here.)  So, when I bought this, I had an expectation I could use it for my WORK as a consultant, because I run a “Business.” When downloading the product, it wouldn’t sync with my Outlook. At. All. (There’s no telling how many times I attempted this with different variations and permutations.)    After six (6) hours on the telephone and online chats with Dell and Microsoft “support,” and my web host provider, I learned I had purchased the wrong product. After much typing and chatting and phoning, I finally learned from these fine folks, you see, “Business” doesn’t actually mean I am able to use it for a “business,” because I was informed that “Business” is really the “Home” version. Insanely aggravating, right?  Silly me, I thought the word “Business,” actually meant you could use it for a business. The software I purchased was $229.24 for a one-time charge but now Microsoft told me the new price for you know – business business - was $99 per year. Honestly, after six (6) hours struggling with tech support, I really didn’t care, I just wanted this nightmare to end. (Doesn’t that sound like a customer coming out of F&I after a long transaction?) And please allow me to mention I resent the word “support” here because none was given!     My Microsoft situation is a textbook bait and switch advertising ploy and is in breach of federal laws. I’m sure Microsoft has plenty of lawyers to argue about this. (By the way, if you’re a class action lawyer looking for a new case, Microsoft might be your next target…) This story illustrates two (2) important considerations in running your store: 1.     If you are having customers accuse you of bait and switch advertising, examine both your website and your other ads, including television, radio, internet etc. (Have you, as the dealer, looked at your online reviews recently? This is a terrific way for you to “listen” to customer feedback.)  If the terms are not “clear and conspicuous,” then likely the ad would be considered deceptive in some way. Because of competitive pressures, I know some dealers who advertise this way intentionally (so BEWARE!) and some who do it unintentionally. Either way, if you pay attention to Joe Public’s feedback, you will learn about process kinks at your store, and you can improve on procedures and avoid false advertising accusations and problems.   2.     In my experience, there is (almost) always a disconnect between the advertising and the sales staff, which leads to claims of bait and switch. The ad agency or in-house ad person should be training the sales staff on advertising specials and how terms were calculated mathematically. When Sally arrives at the lot and requests the advertised deal, then the sales person should be able to articulate clearly “how the deal works” and understand how to communicate this to Sally courteously and effectively. Otherwise, when Sally is told she cannot get the deal, (for whatever reason the sales agent creates), she will be (rightfully) upset. This is a classic scenario where the dealership can make improvements and avoid pitfalls by conveying information to the customer clearly and concisely. This potential negative situation occurs when the sales agent simply doesn’t have the information to properly do their job.This is easily fixed through training.   There are both federal enforcement agencies concerned with these issues, as well as the state Attorneys General.  As an example, Pennsylvania’s Attorney General, Josh Shapiro issued an advisory on March 3, 2022 warning of unfair and deceptive practices which violate the Pennsylvania Consumer Protection Law. Here are three (3) salient points specifically about dealers directly from his advisory: Represent and advertise goods or services at their actual price, comply with the terms of warranties given to the buyer; and not engage in fraudulent or deceptive conduct which creates a likelihood of confusion or misunderstanding. Sell a motor vehicle under the terms or conditions, including price or warranty, which a motor vehicle manufacturer or dealer has advertised or otherwise represented. Disclose any hidden charges in any advertised price of a vehicle, as well as the expiration date of any advertised price. Don’t be the dealer who ends up saying: “Oops!...I did it again, I played with your heart, Got lost in the game…”  It didn’t go well for Brittany Spears in 2007 and it won’t go well for your business either.  If your sales staff gets lost in the game, and plays with customers’ heart, you are going to create irate prospects, which (1) you won’t sell, so you will lose the sale and, (2) even worse, these bait and switch behaviors will attract regulators and lawyers.   Then, it’ll be your “Oops,” which will lead to a hefty fine, lawsuit, or worse…both!

My buddy, Tom, recently visited St. Augustine, Florida and he was kind enough to bring us souvenirs. No, my fiancé and I didn’t get t-shirts. We got something a heck of a lot better than that! We were gifted tiny tourist miracles from Ponce de Leon’s THE FOUNTAIN OF YOUTH! In personalized bottles! That’s life-changing, right? Well, I thought it was awesome until I flipped over the bottle and discovered it was “Made in China.” WAIT, WHAT? Then, we were sad. Our hopes and expectations of eternal youth – dashed. This was a kitschy, little reminder that things don’t always turn out as you want them to or as advertised. Sometimes things turn out worse than you thought and sometimes, though not as often, they turn out better.   And so, when you get a regulatory letter saying the dealership has made customer or advertising mistakes requiring immediate correction, often your expectations start with dread and large dollar signs. That eventuality could happen. However, with proper care and diligence, you can settle the issue(s) quickly. Most often, these regulatory issues start one of three ways:  A customer problem An employee issue Advertising violation(s) Be vigilant on these three (3) issues. They should be front and center in keeping you out of trouble. There are plenty of risk mitigation strategies to prevent problems, covered in a subsequent article. Risk mitigation is an ongoing, everyday practice that requires continuous improvement activity.  So, when you receive a letter, administrative action, lawsuit, subpoena, or a formal request for documents, from a regulator, read the paperwork with great care. Sometimes the magic is in the wording of the allegations. Please read it and set it aside for the moment. Building the Story Next, research the problem. Interview the parties involved. Take clear notes as the nuance of the story matters. If the alleged violation is customer or advertising-based, pull the file and review it carefully. Do all of the signatures in the file look consistent? Or may someone have forged a signature? Build the story of what actually happened by reconstructing the detail, step by step, and commit to recording this for yourself to have a chronological record of what happened. Be sure to include direct quotes from the witnesses in your chronology.  Now, refer back to the original allegations to determine what holes are left in the story. Try to unearth the details relating to those holes. Re-interview as needed. Taking good notes is critical! Effective Risk Mitigation Contact your risk mitigation expert and determine if the charge could be covered by your insurance policy. Consider this carefully. Depending on the dollars involved and the nature of the complaint, insurance company adjustors can make the matter more complex and time-consuming. This is an expansive question, so this will be a future article, as well.   Most “complaints” have deadlines. Just be aware of this and ensure you are responding promptly. At this point, I advocate contacting the regulator directly and having a friendly chat. Find out what he/she is looking for. If the problem was related to a consumer or employee, resolving it may be as simple as satisfying their concerns. If it is advertising-related, I can assure you it won’t be that simple. During that call, be positive, be professional, and assure him/her that you want to resolve the issue. Ask for permission to ask questions. Grab your chronology and ask questions to try to fill in the gaps where the allegations do not make any sense. Go slowly and listen carefully as the regulator may or may not have the correct information.  If the regulator has bad information where you can prove the allegation is incorrect, gently offer up one or two incongruous tidbits at that time. Depending on the rapport you have built, you can offer a third, though I would not offer more than that on a first call. The purpose here is to sow doubt about the veracity of the complaint. Don’t overdo it.  The most critical question you should ask is if you can reach out to the upset person(s) and try to satisfy their concerns directly. Most of the time, the answer to this question is a resounding “yes.” It’s important to ask the question. It shows respect and deference.  Then, agree on a time frame when you will get back with the regulator. Keep him/her posted on your progress. It’s better to over-communicate than under-communicate.  Solving the Issue By now, I am sure you are asking yourself, “when is he going to talk about getting the lawyer involved?” The attorney may not be necessary. This is a fact-specific question and I cannot generalize to give guidance on this. Then, satisfy the aggrieved parties’ concerns. However much it costs to fix the problem, I promise it will be less than letting the regulator devise a solution. Ask them to sign a Release of Claims, which should include language like this: “Customer acknowledges that he is COMPLETELY SATISFIED with ____________ (dealership) and with the resolution of his concerns.” Then, call your regulatory contact again and walk him/her through the dynamics of what happened with the upset person(s). Explain how you resolved the concerns. If a lack of proper business practices caused the problem, it’s usually okay to acknowledge it. Thank the regulator, and, if appropriate, let him know you will change your practices, so this doesn’t happen again. (Use a lot of discretion here as this may not be necessary, and you do not want to create a problem where there isn’t one.) Provide the written document to your contact so he can close his file. Phew! Great work! Conclusion Hopefully, your expectations of dread, gloom, and doom did not come to pass. What did you learn? Is it time to change your risk mitigation strategies? If this was stressful for you, consider taking the time to install new policies and procedures to prevent these problems before they occur. You can reduce your anticipated stress level for future problems by hiring someone who can help with these difficult situations.   Temper your expectations through continuous improvement activity. Risk mitigation is not a one-time thing but is an ongoing practice. It reduces the chances of regulatory interference and catastrophic losses. Consider changing your business processes to accommodate these loss prevention techniques. Then, I’ll meet you in St. Augustine, where we can sip Chinese water from the Fountain of Youth.