Legal Compliance

This section is sponsored by GIADA Legal Counsel Terry Franzen, Sharmin Arefin and Jennifer DeBaun

Therese (Terry) G.
Franzén, Esq.

FRANZÉN AND SALZANO, P.C.
40 Technology Parkway South
Suite 202
Norcross, GA 30092-2906
770-248-2882
770-248-2883 Fax
www.franzen-salzano.com
Sharmin Arefin
D. Sharmin Arefin, Esq.

Franzén and Salzano, P.C.
40 Technology Parkway South
Suite 202
Norcross, GA 30092-2906
770-248-2885 Ext. 231
770-248-2883 Fax
sarefin@franzen-salzano.com
www.franzen-salzano.com

Jennifer W. DeBaun
Associate
Casey Gilson P.C.
Six Concourse Parkway
Suite 2200
Atlanta, Georgia 30328
770-512-0300 Ext. 528
770-512-0070 Fax
jdebaun@caseygilson.com
www.caseygilson.com

As compliance questions arise, we provide the resources for answers.
If you cannot find the answer to your question here, members can call GIADA, (770) 745-9650.
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23) Red Flag Rules and Dealer Compliance 

All  dealers are required to have a Red Flag written policy completed after January  1st, 2011.

GIADA has developed a Dealership Red Flag Written Policy in outline MS Word format for a small size  operation. Many of our members have taken this outline and customized it to fit  their specific business model. GIADA is happy to share this document with only GIADA members. Just send an email to monicac@giada.org to request a Dealership Red Flag Written Policy for you to use. If you have any questions about developing your  company Red Flag written policy please give me a call.  Paul John – 770-745-9650 or paul@giada.org.

These  documents are intended to explain, as well as provide  compliance  information. They are not intended to address the specific  facts and  circumstances of every motor vehicle dealership. Specific  applications  will vary depending upon how a motor vehicle dealership  transacts  business.

The Federal Trade Commission  and the federal  financial institution regulatory agencies have published  final rules on  identity theft “red flags” and address discrepancies.  The Final Rules  implement sections 114 and 315 of the Fair and Accurate  Credit  Transactions Act of 2003.

We have developed materials to assist  Dealers in  complying with the Rules. These materials are being provided  to you for  distribution free of charge.

Please keep in mind that these materials are  designed to  assist dealers in the development of a written dealership  policy for the  detection, prevention and mitigation of identity theft  and are intended  to serve as a guide. While not intended as a universal  solution that  every dealership can adopt, since they are drafted from a  used motor  vehicle dealer’s perspective, NIADA members should find  that they are  easy to use and customize for their dealerships. They may  wish to  consult with their legal counsel or other professional  consultants to  ensure that their dealership policies are appropriate  and in compliance  with applicable federal and state laws, rules and  regulations. The  information contained in this document and the  additional materials  provided are for general information purposes only  and should not be  considered as legal advice.

 

22) New FTC Privacy Statement

The New FTC Privacy Notice. Dealer mandatory compliance by 01/01/11Privacy is a central element of the FTC’s consumer protection mission. In recent years, advances in computer technology have made it possible for detailed information about people to be compiled and shared more easily and cheaply than ever. That has produced many benefits for society as a whole and individual consumers. For example, it is easier for law enforcement to track down criminals, for banks to prevent fraud, and for consumers to learn about new products and services, allowing them to make better-informed purchasing decisions. At the same time, as personal information becomes more accessible, each of us – companies, associations, government agencies, and consumers – must take precautions to protect against the misuse of our information.The Federal Trade Commission is educating consumers and businesses about the importance of personal information privacy, including the security of personal information. Under the FTC Act, the Commission guards against unfairness and deception by enforcing companies’ privacy promises about how they collect, use and secure consumers’ personal information. Under the Gramm-Leach-Bliley Act, the Commission has implemented rules concerning financial privacy notices and the administrative, technical and physical safeguarding of personal information, and it aggressively enforces against pretexting. The Commission also protects consumer privacy under the Fair Credit Reporting Act and the Children’s Online Privacy Protection Act. Use the topic links on the left to read more about our efforts in each of these areas, including what we’ve learned, and what you can do to protect the privacy of your personal information.Dealers who distribute privacy notices to their customers must be using the new FTC Privacy Notice as of 01/01/11. GIADA has taken the FTC Model Privacy Notice Form and formatted it for general use to accommodate the typical independent auto dealer. You will want to retain a signed copy of this form for your records and proof the notice was given to the customer. Depending on your particular business model and practices, modifications may be required to this privacy notice if for an example you routinely share customer information with other entities. Sample: GLB Customer Privacy NoticeClick Here to purchase form GIADA GLB-2  (Consumer Privacy Notice)Package of  50 – Double  sided  -  Member price:  $19.89  -  Non-member price:  $28.41

Price excludes tax and  shipping.

DISCLAIMER NOTICE: The information in this document is intended for  information purposes only and does not constitute the giving of legal or  compliance advice to any person. Because of the generality of this  update, the information provided in this document may not apply to all  situations and should not be acted upon without specific legal advice  based on your dealership’s particular situations from a knowledgeable  attorney or compliance professional licensed to practice in your state.

 

21) Risk Based Pricing Rule Compliance

The new FTC Risk Based Pricing Rulewent into effect January 1st, 2011. It is important that you determine if these new rules apply to you because of the way you do business. GIADA has developed an easy to understand FAQ’s. (Frequently Asked Questions)   Reading through the FAQ’s will help you determine if your business model requires you to distribute one of the new FTC Risk Based Pricing Rule Notices. Samples of these forms are provided in this section.FAQ’s for Risk Based PricingSample: B-1 (Risk Based Pricing Notice)Sample: B-4 (Credit  Score Disclosure Exception Notice)Sample: B-5 (Credit  Score Not Available Notice)GIADA B-1 (Risk Based Pricing Customer Notice) Package of 50 2-part NCR carbonless single sided Member price: $19.36 Non-member price: $27.57GIADA B-4 (Credit Score Disclosure Exception Notice) Package of 50 2-part NCR carbonless single sided Member price: $19.36 Non-member price: $27.57GIADA B-5 (Credit Score Not Available Notice) Package of 50 Single sided Member price: $11.12 Non-member price: $15.89
** All forms prices exclude sales tax and shipping

To purchase any of these forms click here and you will be directed to our on-line store.


Here is an easy to understand article written by an attorney that explains the new rules. GIADA members are encouraged to call Paul John at GIADA with any questions or concerns. We are here to help our members. 770-745-9650 or 800-472-8101. or email: paul@giada.org.READ THIS ARTICLE: Effective January 1, 2011, dealers will be subject to the FTC’s Risk-Based Pricing Rule. The idea behind this Rule is that certain customers get worse deals because of bad credit and they should know that.  So a creditor who uses a consumer report and “grants, extends, or otherwise provides credit to that consumer on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that person” either has to give these customers a risk-based pricing notice or give an “exception notice” to every consumer who applies for credit through the dealership.

For indirect auto finance, auto dealers have to give risk-based pricing notices or implement the exception notice process discussed below. Oral risk-based pricing notices are permitted but written notices are recommended and the exception notice must be in writing.  The Rule does not apply to lease transactions or business credit.

If you are going to give a risk-based pricing notice to customers you finance, the first task is to identify who should get a notice.  The “material terms” element of the rule means the APR or, in the case of credit that doesn’t have an APR, “”the financial term that varies based on information in a consumer report and that has the most significant financial impact on consumers such as a deposit….”  You don’t have to give a notice if the customer applied for specific credit terms and you give them exactly those terms like a promotional APR.
While there are a number of ways to comply with the Rule, most dealers will use one of two: i)  give a risk-based pricing notice to certain financed customers based on the “credit score proxy” notice method; or ii) give an “exception notice” to every consumer who applies to your dealership for financing.  The FTC and the NADA recommend but don’t require using the exception notice.  Let’s briefly discuss both.

The way the “credit score proxy” notice works is that you do a representative sampling of your completed deals from the past two years (you must do this separately for new vehicle credit and used vehicle credit).  You then identify a cutoff credit score representing the credit score at which approximately 40% of your customers have higher credit scores and approximately 60% of your customers have lower credit scores. (say 632 for example).  You then must give a risk-based pricing notice to every new customer you finance whose credit score is lower than the cutoff score (632 in our example).  The notice has mandatory language you must use.  Special rules apply if you use more than one credit score in setting the material terms of credit. You must recalculate your cutoff credit score no less than every two years if you used a two-year representative sample or one year if you didn’t have two years of deals to sample. You must also give any customer who does not have a credit score a different notice.

Customers who get these risk-based pricing notices are entitled to a free credit report much like a customer who receives an adverse action notice.

The “exception notice” doesn’t require you to give a risk-based pricing notice to anybody.  But it does require you to give a written credit score disclosure notice to every consumer who applies for credit through your dealership even if you don’t finance them.  Consumers who receive this notice are not entitled to a free credit report other than the annual free credit report all consumers can get from each credit bureau at the site, http://www.annualcreditreport.com/

The exception notice tells the consumer their credit score, the source of the credit score, the date the score was created and contains other mandatory disclosure language. It also has to provide information about the percentage of U.S. consumers who have lower and higher credit scores than the consumer, either by using a bar chart of credit score distribution ranges or by telling the consumer where their credit score falls in the national range of consumer credit scores. If you use this exception notice, give this notice to each credit applicant as soon as reasonably practicable after you obtain their credit score but before you consummate the transaction. Use the same notice for consumers without credit scores as described above. If you use the exception notice, you will have to obtain a credit score and a notice form from a credit bureau or other provider showing the national range of credit scores or indicating where the consumer’s credit score falls in the national distribution of scores.

Whatever notice procedure you use, keep a copy of the notice you give in the deal jacket to document your compliance with the rule.

Randy Henrick is Associate General Counsel and lead Compliance Counsel  for DealerTrack, Inc.  He is also Chairman of the New York State Bar  Association’s Consumer Financial Services Committee.  This article is  intended for information purposes only and does not constitute the  giving of legal or compliance advice to any person. Because of  the generality of this update, the information provided in this article  may not apply to all situations and should not be acted upon without  specific legal advice based on your dealership’s particular situations  from a knowledgeable attorney or compliance professional licensed to  practice in your state.

 

20) Your Own “Lot Audit” Are You Compliant?

Car dealers are constantly under scrutiny by not only local and state regulators, but also on a Federal level as well. GIADA helps its members stay compliant and through proper education dealers can avoid staggering penalties and fines. Members, please call one of our capable staff members whenever you have any type of legal or compliance questions. While we are not attorney’s, we have the expertise and answers you need. If not, we will refer you to one of member attorneys for guidance.Take the self audit test. Can you answer YES to each questions? Print Lot Audit

 

19) O.C.G.A. § 10-1-32 – Motor Vehicle Sales Financing

Dealer Legal Compliance

TITLE 10.  COMMERCE AND TRADE

CHAPTER 1.  SELLING AND OTHER TRADE PRACTICES  ARTICLE 2.  MOTOR  VEHICLE SALES FINANCING O.C.G.A. § 10-1-32  (2009)

This statute  also explains how late fees may be charged. This  statute also explains how late fees may be charged.

 

18) The Governors Office of Consumer Affairs – Deceptive sales practices

Dealer Legal Compliance

The  Governors Office of Consumer Affairs Understand the rules and  avoid possible steep penalties The Governors Office of Consumer Affairs, (G.O.C.A.) monitors  and regulates how companies advertise their products. Since auto dealers  routinely advertise in  various ways including on-line, dealers are well advised to make sure  that they understand the rules. Penalties for  deceptive advertising can be rather severe. The G.O.C.A. and GIADA are  working together to properly inform and educate dealers about acceptable  and legal advertising. The G.O.C.A.’s just released information about  he top 15 most common advertising violations and the new G.O.C.A. Auto  Advertising and Sales Practices Enforcement Policies. Don’t hesitate to  call the GIADA office if you have any questions. Advertising Traps For The Unwary, by Attorney Terry Franzen Top 15 Most Common Advertising Violations For Car Dealers G.O.C.A. Auto Advertising and Sales Practices Enforcement  Policies

 

17) Endangering Security Interest Statute

Dealer Legal Compliance

Endangering  Security Interest Statute: O.C.G.A Code 16-9-51 is a Georgia  statute that was enacted to protect lien holders and their security  interests. Specifically, this law may be used by you to get the Court System and Local Law Enforcement involved to help you retrieve your financed vehicle when the  customer has defaulted and refuses to allow you or your repo company to  take back the vehicle. In some counties they will allow you swear out an arrest warrant for your customer. Check with your  local authorities to find out if this Georgia statute can help you.

 

16) Dealer Temporary (Drive-out) Tag Laws
Dealer Temporary Tag Laws

Dealers are required to hand write the  vehicles  VIN, year, make and model and master 12 digit dealer number on  each  Holographic sticker attached to a dealer drive-out tag at time of   delivery, in addition to the expiration date. After  January 1st, 2006, each holographic sticker will be required  to have a unique number. All holographic stickers manufactured after  July 1st,  2005 shall be numbered with a distinct number. All  sellers of  holographic stickers (images) are going to be required to  maintain an  inventory record of holographic images by number and  Purchaser.
Remember, giving your customer another  30-day  holographic sticker after their first one runs out is very  illegal. Do  not do it. We suggest that when purchasing future inventory,  you be  diligent in determining the status of the title and when you may   receive it from the seller. If you make the decision to retail a   vehicle before you get the title, you are always risking the possibility   of not getting the title within the 30 day period of which you are   required to transfer ownership and face the possibility of pricey fines   assessed by the Used Car Board. Not to mention putting your new  customer  in an awkward situation when they’re driving around on an  expired temp  tag.
For two years, we have been educating dealers and  preaching that  they understand and use the T-226 Form. This form is  available to anyone  on-line. At day 25, if you still haven’t received  the customer’s title  from whom you bought it from, have them come in,  help them fill out the  T-226 Form and send them to their tag office to  obtain a legal 30-day  extension temp tag from their tag agent.  While this doesn’t  completely eliminate the possibility of still being  fined $500 for your  inability to transfer title ownership within 30  days, it will buy you  some time and earn confidence from your customer  by making sure they are  legal.
There are clear laws for dealers issuing Temp  Tags or Drive-Out tags. Do not issue more than one  temp tag. It is illegal! Obtain a DMVS form T-266. Help your customer  obtain another 30 day DMVS issued tag. Call GIADA for assistance if  needed.

 

15) Dealer Tag Usage Laws

Dealer Legal Compliance

Dealer Tag Usage Laws Dealer Tag Usage Statute 40-2-38 DMV Dealer Tag RulesCODE: 40-2-38. A dealer may use or permit to be used a dealer’s  number for private use on vehicles owned by the dealership,  regardless of whether such vehicle has been issued a certificate of  title or registered, when such vehicles are operated by an employee or  corporate officer of the dealer which has been issued such number. A  distinguishing dealers number used by an employee or officer for private  use shall authorize such person to operate the vehicle to which the  number is attached on the public highways and streets. For purposes of  this paragraph, “employee” means a person who works a minimum of 36  hours per week at the dealership.

Instructions  for Applying for Dealer Tags

Here is a recap of the  new changes coming this renewal period for your dealer tags. In 2006  dealer tags for franchise dealers and independent dealers will be  distinguishing different. Instead of a two-year renewal period, dealer  tags will be renewed annually. A three (3) plate limit will apply,  initially. One additional tag may be applied for every 20 annual sales  that is certified by the department. The number of dealer tags issued  will be determined based upon passed sales history through title  registration. Individuals that can use dealer tags are limited to  employees that work a minimum of 36 hours per week. The rules allow for  private use by the dealer and officers of the company. Vehicles must be  owned by the dealership. If a dealers tag is lost or stolen, the law  requires that the dealer report the lost or stolen plate to local law  enforcement agencies. If a replacement plate is sought, dealers will  prove that they reported tag missing to local authorities.

 

14) House Bill – 22 Motor Vehicle Situs Bill

Dealer Legal Compliance

House  Bill – 22 Motor Vehicle Situs Bill
Passed –  Effective date July 1, 2005
This bill changes the point of sale for imposing sales tax on  motor vehicle sales, and rentals or leases exceeding 30 days to Georgia  residences to the county of motor vehicle registration without regard to  the selling dealer’s physical location. Example: A  Fulton Co. Purchaser buys a car from a Cobb Dealer. The Cobb Dealer  will be required to collect, report and remit the taxes imposed in  Fulton County (4% State, 1% MARTA, 1% Local Option and 1% Educational  Taxes). 7%. The only exception to this new rule is  with sales to College Students and Military Service personnel  temporarily residing in Georgia. The correct tax rate to charge these  customers will be based upon the point of delivery, which means your  county in which your dealership is based. The form  “Affidavit of out of County Delivery” will no longer be required.  However, when selling to out of state customers, the ST-6 or ST-8 will  still need to be completed and kept in your deal jacket. The ST-6 is  used to document when your dealership makes deliveries outside of  Georgia. The ST-8 is used to document a sale to a nonresident that is  immediately removing the vehicle from Georgia for use in another state.
If you have any  questions about this new tax law change or the proper use of the ST-6 or  ST-8 please contact GIADA. If you would like a  copy of the new bill log onto http://www.legis.state.ga.us/ then select HB22.

 

13) Notice from the DMVS

Dealer Legal Compliance

Notice from the DMVS How  Dealers Can Help Customers Avoid Insurance and Registration Problems DMVS  Dealer Newsletter 09/20/04

 

12) Beware of Persons Impersonating FTC Employees

Dealer Legal Compliance

Beware  of Persons Impersonating FTC Employees
May 28, 2004 By now, dealers should be aware of  their obligations under the Gramm-Leach-Bliley Act’s Privacy Rule and  Safeguards Rule. Dealers are also likely aware that the Federal Trade  Commission (‘FTC’) is the federal agency responsible for enforcing these  rules.
We recently learned that  two men purporting to work for the FTC visited a dealership to inquire  about the dealership’s compliance with the Safeguards Rule and other  federal privacy regulations. According to the agency, its staff is not  currently conducting on-site investigations of automobile dealers for  privacy violations. Further, in general, it does not conduct on-site  visits in connection with its privacy investigations prior to  establishing contact with the company through written or oral  communication.
If you receive a  visit from persons identifying themselves as FTC employees investigating  privacy compliance, please:
Ask  for their names and telephone numbers.
Do not disclose any information and certainly not  customer information unless you have confirmed that the visitors are in  fact FTC personnel.
Notify NADA of  this visit so that we can contact the appropriate authorities.
If you have further questions, contact the  NADA Legal Office at (703) 821-7040.

 

10) The FTC Safe Guards Rule: Are You In Compliance?

Dealer Legal Compliance

The  FTC Safe Guards Rule: Are You In Compliance? As of  May 23, 2003, dealerships are required to have in place written  policies and procedures to safeguard customer information under the  Federal Trade Commission?s (FTC) Safeguards Rule. In order to  appropriately comply, dealerships must develop, implement and maintain a  written information security program that is appropriate to the  dealership?s size and complexity, the nature and scope of its activities  and the sensitivity of the customer information it collects. Federal Trade Commission reportedly has begun probing dealerships in  order to determine whether they were complying with the FTC?s new  ‘Safeguarding’ privacy rule. The dealers reportedly had received letters  demanding to see a long list of documents dealing with privacy  compliance. The Federal Trade Commission, which is the federal  regulator of car dealerships for a number of laws and regulations,  including the privacy regulations and buyer’s guide enforcement, is the  meanest cop in town when it comes to enforcement. Industry experts bet  that the FTC will not be at all happy with the level of privacy  compliance by car dealers, and that this ‘inquiry’ will turn into a  vigorous enforcement effort.

If you don?t have a safeguarding policy in place, you?d better  get one soon. The FTC can wield an $11,000 per violation, and they like  to use it to make examples and grab headlines. The current probes of car  dealers indicate that the FTC is serious about the new Safeguarding  Rule. You?d better be serious, too.

 

9) Executive Anti-Terrorism Order – Verify Customer I.D. & Check Blocked Persons List

Dealer Legal Compliance

Executive  Anti-Terrorism Order – Verify Customer I.D. & Check Blocked Persons  List With so much attention being directed toward  the rules evolving under the Patriot Act, the requirements under  Presidential Executive Order 13224 are often overlooked. The Executive  Order prohibits U.S. citizens from entering into ?any transaction or  dealing? with individuals or entities identified either in the Executive  Order, by the Department of Treasury or by the Secretaries of State as  posing a significant risk of committing terrorist acts or providing  support to these organizations or individuals. The Office of Foreign  Asset Control (OFAC) maintains an alphabetical master list of Specially  Designated Nationals and Blocked Persons. Individuals who violate the  Order by entering into a transaction with a ?blocked? person or entity  can be fined up to $250,000 and serve up to 10 years in prison, while  companies can be fined up to $500,000.
Office of Foreign Asset Control (OFAC)  Click Here   
Blocked  Persons List – (SDN) Specially Designated Nationals – Suspected  Terrorists
The  law requires car dealers to verify their customers identity and check  the SDN database. If you encounter a person who?s name appears on the  SDN database, do not do business with him or her. Call local PHONE  NUMBER BELOW. Call GIADA if you have questions. Link: Click  here for access to (SDN) Blocked Persons List This link will take  you to the U.S. Department of Treasury Website. Click on Specially  Designated Nations (SDN) List. This is a rather large PDF file and  approximately 180 pages. High speed Internet is highly  recommended. IMPORTANT: IN THE EVENT  THAT A MOTOR VEHICLE DEALERSHIP SUSPECTS OR HAS REASON TO SUSPECT THAT  AN INDIVIDUAL MAY BE INVOLVED IN MONEY LAUNDERING OR OTHER TERRORIST  ACTIVITIES THE DEALERSHIP MAY REPORT SUCH ACTIVITY BY CALLING THE  FINANCIAL INSTITUTIONS ‘HOT-LINE’ 866-556-3974 WHICH IS  ALSO THE NUMBER TO CALL IF YOU FIND THAT YOUR CUSTOMERS NAME IS ON THE  SDN-BLOCKED PERSONS LIST.

 

8) Drivers License Requirements to Obtain Title Transfer in Georgia

Dealer Legal Compliance

Drivers  License Requirements to Obtain Title Transfer in Georgia GIADA Official Position - Effective  July 1, 2003 Senate Bill 250 amended Official Code of Georgia Annotated  40-3-21(a)(1) and added the following additional requirements to the  contents for an application for a first certificate of title:
“The full legal name, driver’s license number,  residence, and mailing address of the owner;” Senate  Bill 250 and OCGA Code 40-3-21
OFFICIAL  DMVS RULE 12/22/03 – MEMO From  DMVS to All Tag and Title Offices Clearly, Senate Bill 250  does not require the applicant for a first certificate of title to  possess a driver’s license issued by the State of Georgia. No reference  is made to the state of issuance of the driver’s license, and the DMVS  interprets Senate Bill 250 to allow applications to be completed using  the number from a driver’s license or state issued identification card.  The purpose of this requirement is to facilitate the Department of Motor  Vehicle Safety’s (DMVS) efforts to integrate the information contained  on the driver’s license database with the tag and title database  (GRATIS). By including driver’s license number and full legal name in  the title application, the information on GRATIS can be matched with the  owner’s driver’s license record. Eventually, the DMVS hopes to combine  the two (2) programs into a single database. One of the benefits of  combining the two (2) databases will be to unify the information  contained therein. Further, the use of a single database will assist the  DMVS in identifying non-resident applicants who are attempting to  circumvent the prohibitions against titling their vehicles in the State  of Georgia contained in Official Code of Georgia Annotated Section  40-3-4(3).
The DMVS has identified  several situations in which the presentation of an out-of-state driver’s  license or identification card is appropriate, including: Applicants  who are residents of the State of Georgia for the purpose of motor  vehicle registration, but ineligible to obtain a Georgia driver’s  license or identification card; and Applicants who are non-resident  military service persons living in Georgia pursuant to military orders;  If a title application is rejected by a county tag agent because it does  not include a Georgia driver’s license or identification number, the  dealer or its representative may contact the DMVS via facsimile at (404)  362-6463. In order to facilitate the DMVS’ efforts to look into the  situation, please provide the following information: Name of the county  agent – (tag office and employee name) Date of rejection MV1 applicant –  (customer name)
In addition to its  responsibility for administering the laws and regulations relating to  registration and titling of motor vehicles, the DMVS is also the agency  primarily responsible for the administration of the laws and regulations  relating to driver’s licenses. To that end, the DMVS cannot overlook  situations where an applicant for a certificate of title uses an  out-of-state license number, but is legally required to obtain a Georgia  driver’s license.
GIADA’s  position is that the county agent should only be concerned with  verifying that the application includes a valid driver’s license number  and not determining whether the applicant has complied with the laws  pertaining to driver’s licenses.
GIADA and others are continuing to work with state representatives and  the DMVS to insure the county agents do not disrupt the used car  industry in their attempt to do their job to the best of their ability.  The GIADA recognizes the need to improve the information contained in  the State’s databases while protecting the used car industry as the  dealers try to comply with the laws, rules and regulations in the daily  operation of their businesses.

 

 7) Experts Urging Dealers to Stop Telemarketing Until They Understand The Law

Dealer Legal Compliance

Experts  Urging Dealers to Stop Telemarketing Until They Understand The Law
The on-again, off-again federal  anti-telemarketing “Do Not Call” registry is on again, and car dealers  who use telemarketing sales techniques should immediately stop calling  people on the list. To Read Full Story – CLICK HERE To Access National Do Not Call  Registry CLICK HERE

 

6) Georgia Abandoned Vehicle Laws – You Need to Know THE LAW!

Dealer Legal Compliance

Georgia  Abandoned Vehicle Laws – You Need to Know THE LAW! Click  here for state code
O.C.G.A. Code 40-11-2
Any  person who removes a motor vehicle from public property at the request  of a law enforcement officer or stores such vehicle shall seek the  identity of and address of all known owners and/or security initerest  holder of such vehicle from the law enforcement officer requesting  removal of such within three business days of removal. The local law  enforcement agency shall furnish such information to the person removing  such vehicle within three business days after receipt of such request.
The person removing or  storing such motor vehicle shall, within seven calendar days of the day  such motor vehicle was removed or one business day after the  information is furnished to the remover or storer pursuant to subsection  (a) or (b) of this Code section, whichever is later, notify all owners  and security interest holders, if known, by written acknowledgment  signed thereby or by certified or registered mail or statutory overnight  delivery, of the location of such motor vehicle, the fees connected  with removal and storage of such motor vehicle, and the fact that such  motor vehicle will be deemed abandoned under this chapter unless the  owner, security interest holder, or lienholder redeems such motor  vehicle within 30 days of the day such vehicle was removed. Any person  who does not provide the notice and information required by this Code  section shall be guilty of a misdemeanor and, upon conviction thereof,  shall be punished as for a misdemeanor, shall not be entitled to any  storage fees, shall not be eligible to contract with or serve on a  rotation list providing wrecker services for this state or any political  subdivision thereof, and shall not be licensed by any municipal  authority to provide removal of improperly parked cars under Code  Section 44-1-13.

 

5) Spot Delivery Newsletter Service is a Great Resource for Dealers and Finance Companies

Dealer Legal Compliance

Spot  Delivery Newsletter Service is a Great Resource for Dealers and  Finance Companies.
Dealers: GIADA subscribes to Spot Delivery monthly newsletter service  and on-line access to plain and simple answers to legal questions and  issues affecting our industry. You should check it out and sign up  yourself. Click Here for  More Information Spot Delivery is a concise, easy-to-read, monthly legal update that you can depend on  to provide timely answers to legal questions you face every day. Spot  Delivery addresses complex legal issues from an industry perspective; it  also keeps you informed on new legal developments affecting your  business.
Spot  Delivery provides authoritative, reliable information in  easy-to-read, plain English. The newsletter provides familiar factual  scenarios, identifies the legal issues involved and presents real court  resolutions and suggestions on how you might avoid similar legal  pitfalls. This practical, useful publication will provide you and your  management team with valuable knowledge designed to increase awareness  of legal consequences attendant to everyday business decisions.

 

4) Buy Here – Pay Here Issues Regarding the Cash Method of Accounting

Dealer Legal Compliance

CLICK HERE  FOR FULL STORY

 

3) A Dealer’s Guide to the Used Car Rule

Dealer Legal Compliance

Buy Here – Pay Here  Issues Regarding the Cash Method of Accounting CLICK HERE  FOR FULL STORY

 

2) Vehicle Emission Inspection – Clean Air Force Requirements

Georgia law  requires that no person (dealers, auctioneers or individuals)  sell a  used vehicle, if such vehicle is to be registered in one of the 13   covered counties (Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas,  Fayette,  Forsyth, Fulton, Gwinnet, Henry, Paulding, and Rockdale),  unless such vehicle  has a valid, passing certificate of vehicle  emission inspection at the time of  sale (DNR Rule 391-3-20-.18(1)). The  seller is not required to provide the buyer  with a copy of the VIR.  Please note: the Georgia Environmental Protection  Division (EPD) can  only investigate sales that have occurred within Georgia.Vehicle Sale  Information (Clean Air Website)
Sellers may print free  copies of Georgia Vehicle Emission Inspection Reports  (VIR) by clicking  here.
Ga.  Code 12-9-54 Ga.  Code 12-9-55

 

1) Law Changes – Proof of Liability Insurance Coverage – Effect Tag Purchases

(GEICS) Georgia Electronic Insurance Compliance Sysytem
Motor Vehicle Liability Insurance Coverage Owner Responsibilities.
House Bill 191 of the 2003 Session of the Georgia General Assembly became law on May 28, 2003 when signed by Governor Perdue and it makes the following changes:
After December 31, 2003, a Georgia insurance information card will not be acceptable proof of liability insurance coverage when:
  • You are stopped by law enforcement; or when,
  • You are attempting to register and obtain a tag for your vehicle; or,
  • When you are trying to replace, transfer, or renew your existing Georgia tag.
For dealers who process tag work on behalf of their customers as a service or courtesy, DMVS offers dealers a new form. (MV18H) This new form allows dealers to confirm and document liability insurance has been transferred on recent vehicle purchase, before GRATIS has been updated. This new form accompanied with the MV-1 Title Application will allow tag agents to issue new tag or decal.

DMVS (MV18H) Insurance Verification Form. MV18H form can be obtained by ordering through GIADA.

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