Legal Compliance
As compliance questions come up, GIADA provides the resources for answers. If you can't find yours here, members can call GIADA at 770-745-9650.
Identity theft
Red Flags Rules and dealer compliance
Every dealer is required to have a written Red Flags policy.
The Federal Trade Commission and the federal financial regulators have published final rules on identity theft “red flags” and address discrepancies. The rules carry out sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003. These materials explain the rules and give compliance information. They can't address the specific facts of every dealership: how they apply depends on how your dealership does business.
These materials are meant to help dealers write a dealership policy for detecting, preventing and reducing identity theft, and to serve as a guide. They aren't a universal solution every dealership can adopt, but since they're written from a used car dealer's point of view, members should find them easy to use and adapt. You may wish to check your policies with your attorney or other advisers to make sure they're appropriate and comply with federal and state law. This information is for general information only and isn't legal advice.
Executive Order 13224
Verify customer ID and check the blocked persons list
With so much attention on the rules under the Patriot Act, the requirements of Presidential Executive Order 13224 are often overlooked. The Order prohibits U.S. citizens from doing business with people or organizations named in the Order, or by the Treasury or State Departments, as posing a significant risk of committing or supporting terrorist acts. The Office of Foreign Assets Control (OFAC) keeps an alphabetical master list of Specially Designated Nationals and Blocked Persons (the SDN list). People who violate the Order can be fined up to $250,000 and jailed up to 10 years; companies can be fined up to $500,000.
The law requires car dealers to verify their customers' identity and check the SDN list. If a customer's name is on the list, don't do business with them. Call GIADA if you have questions.
If your dealership suspects that someone may be involved in money laundering or terrorist activity, report it to the financial institutions hotline: 866-556-3974. That's also the number to call if your customer's name is on the SDN list.
Clean Air Force
Vehicle emission inspection
Georgia law says no one (dealers, auctioneers or individuals) may sell a used vehicle that will be registered in one of the 13 covered counties (Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Paulding and Rockdale) unless it has a valid, passing emission inspection certificate at the time of sale (DNR Rule 391-3-20-.18(1)). The seller doesn't have to give the buyer a copy of the Vehicle Inspection Report (VIR). The Georgia Environmental Protection Division can only investigate sales made in Georgia.