Legal Compliance

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.

Red Flag Rules and Dealer Compliance
All dealers are required to have a Red Flag written policy.

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.

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.

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.


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

 

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