Reformulated Query
BHPH dealers frequently encounter forged financial documents. Since forgery is a felony, why don’t they notify law enforcement immediately rather than letting the customer leave?
I think it boils down to a delicate balancing act between business pragmatism and legal caution. Many BHPH dealers prefer to handle forgeries internally because immediately engaging law enforcement can disrupt the customer relationship and invite potential litigation or negative publicity. It’s often easier to work out a remedy or push the account into collections rather than get bogged down in a criminal investigation, especially given the nuances of state regulations and the pressures of keeping a steady sales flow in a tight margin environment. Plus, in some areas, local law enforcement might be reluctant to step in unless there’s a more serious pattern of fraud. It’s an industry dance where lenders weigh the cost of reporting against the benefits of maintaining customer relations in a market that’s already dealing with tighter margins and rising interest rates. 
BHPH dealers are often in a tight spot. Their primary goal is to keep the wheels turning rather than getting embroiled in lengthy legal battles. Reporting forgeries to the police could halt operations, delay repossessions, and invite unwanted scrutiny that might hurt their sales and profit margins. They typically handle it in-house and use collections or repossession processes as a quicker, less disruptive fix. Plus, inconsistencies in state laws sometimes mean that pursuing a criminal case isn’t as straightforward as it sounds. Their focus is on minimizing disruption, not stacking up a paper trail for the feds.