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April 15Prepared by GIADA1 Important Consumer Protection Laws Became effective July, 2007.

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Presentation on theme: "April 15Prepared by GIADA1 Important Consumer Protection Laws Became effective July, 2007."— Presentation transcript:

1 April 15Prepared by GIADA1 Important Consumer Protection Laws Became effective July, 2007

2 April 15Prepared by GIADA2 Your participation is required to deal with the problem. We need your help!

3 April 15Prepared by GIADA3 Our Goal Today is… Inform & educate you ABOUT CURBSTONING! Inform & educate you ABOUT CURBSTONING! Explain new Ga. statute Explain new Ga. statute Encourage you to help minimize the problem of curbstoning in your community Encourage you to help minimize the problem of curbstoning in your community

4 April 15Prepared by GIADA4 What is Curbstoning? Who is involved? Curbstoning involves a person or persons who are regularly engaged in the business of buying and selling used automobiles for profit but without a license, insurance, bond, sales tax number, Federal tax ID, proper local permits or legally established place of business. Curbstoning involves a person or persons who are regularly engaged in the business of buying and selling used automobiles for profit but without a license, insurance, bond, sales tax number, Federal tax ID, proper local permits or legally established place of business. Curbstoners operate “under the radar.” Curbstoners operate “under the radar.”

5 April 15Prepared by GIADA5 Some Curbstoners are Licensed Dealers Unfortunately, the State is issuing Dealer Licenses to individuals who have nothing more than a suite office. Because they don’t have enough capital to secure an actual car lot, many turn to Curbstoning. Many ads on Craig’s list are licensed Dealers portraying themselves as individual sellers. All licensed Car Dealers must display their inventory and conduct business with consumers at the same location where they are licensed and are held to consumer protection rules.

6 April 15Prepared by GIADA6 The DNA of a Curbstoner Many times Curbstoners are scam artists Many times Curbstoners are scam artists Individuals who ignore the laws meant to protect consumers from unscrupulous sellers of vehicles Individuals who ignore the laws meant to protect consumers from unscrupulous sellers of vehicles Won’t think twice about selling vehicles that they know are unreliable or have hidden mechanical defects. Won’t think twice about selling vehicles that they know are unreliable or have hidden mechanical defects. Often will lie about history of a vehicle Often will lie about history of a vehicle Often will lie about mechanical condition Often will lie about mechanical condition Don’t want a paper trail Don’t want a paper trail Think that they are doing nothing wrong or think they won’t get caught Think that they are doing nothing wrong or think they won’t get caught

7 April 15Prepared by GIADA7 Curbstoning Environments Gas stations Gas stations Auto repair businesses Auto repair businesses Private property – yards Private property – yards Vacant property Vacant property Shopping centers Shopping centers Busy street corners Busy street corners Grocery stores Grocery stores Department stores Department stores Banks (closed) Flea Markets Subdivisions Restaurants

8 April 15Prepared by GIADA8 Examples

9 April 15Prepared by GIADA9 The Unfortunate Facts, # 1. Consumers think that they will get a better price if they buy from an individual, and many think they can’t afford a vehicle from a reputable, reliable dealer. Consumers think that they will get a better price if they buy from an individual, and many think they can’t afford a vehicle from a reputable, reliable dealer.

10 April 15Prepared by GIADA10 The Unfortunate Facts, # 2. Consumers feel less intimidated approaching an individual seller they perceive to be a good neighbor versus a professional salesman. Consumers feel less intimidated approaching an individual seller they perceive to be a good neighbor versus a professional salesman.

11 April 15Prepared by GIADA11 The Unfortunate Facts, # 3. Many vehicles advertised in classified ads are those of Curbstoners.

12 April 15Prepared by GIADA12 The Unfortunate Facts, # 4. Victims of Curbstoners often end up making expensive repairs because a rolled back odometer led them to believe the vehicle was in better shape.

13 April 15Prepared by GIADA13 The Unfortunate Facts, # 5. Victims of Curbstoners many times find themselves in dangerous vehicles that have been previously totaled or have suffered major structural damage resulting from an severe accident or water damaged.

14 April 15Prepared by GIADA14 And to recap… People buying vehicles from Curbstoners (or individuals) have ZERO RECOURSE if something goes wrong such as… Odometer roll back Odometer roll back Unsafe vehicle – not road worthy Unsafe vehicle – not road worthy Serious mechanical problems Serious mechanical problems Airbag doesn’t work Airbag doesn’t work Stolen Stolen Title problems Title problems Previous flood or salvage history Previous flood or salvage history Vehicle won’t pass Emissions Vehicle won’t pass Emissions Liens, or past due Ad Valorem ta Liens, or past due Ad Valorem tax

15 April 15Prepared by GIADA15 Reasons for consumers to buy from licensed car dealer Laws in place to protect consumers Laws in place to protect consumers $35,000 customer surety bond $35,000 customer surety bond Guaranteed title transfer within 30 days Guaranteed title transfer within 30 days Federal odometer law compliance Federal odometer law compliance Used Car Board for consumer complaints Used Car Board for consumer complaints Dealer’s public reputation at stake Dealer’s public reputation at stake

16 April 15Prepared by GIADA16 The other side…Buyers Drug dealers, money launderers and crooks prefer to buy cars from individuals. Why…? Drug dealers, money launderers and crooks prefer to buy cars from individuals. Why…? Because they know that licensed auto dealers are required to verify customer identity, report cash transactions to the IRS and check the Homeland Security list of suspected terrorists and known money launderers. Because they know that licensed auto dealers are required to verify customer identity, report cash transactions to the IRS and check the Homeland Security list of suspected terrorists and known money launderers.

17 April 15Prepared by GIADA17 The Old Rules - § O.C.G.A USED MOTOR VEHICLE DEALERS’ (AND PARTS DEALERS’) REGISTRATION ACT O.C.G.A. § USED MOTOR VEHICLE DEALERS’ (AND PARTS DEALERS’) REGISTRATION ACT The problem…? NO TEETH! The problem…? NO TEETH! Jurisdiction and enforcement were the responsibility of the Used Car Board Licensing Division. Jurisdiction and enforcement were the responsibility of the Used Car Board Licensing Division. Simply did not have the proper resources Simply did not have the proper resources

18 April 15Prepared by GIADA18 The New Rules – § As a result of H.B. 144 that was signed by the Governor in As a result of H.B. 144 that was signed by the Governor in Puts the heat on property owners (or business lessee) Puts the heat on property owners (or business lessee) No more than 2 on display at same time No more than 2 on display at same time No more than 5 in a 12 month period No more than 5 in a 12 month period Some exclusions such as… Some exclusions such as… Employee Employee Shopping Shopping Parking Parking And the best part… The teeth!!! And the best part… The teeth!!!

19 April 15Prepared by GIADA19 Not only teeth, but VERY SHARP TEETH! THE NEW GEORGIA CODE O.C.G.A. § ~ (Penalties) Allows Law Enforcement Officer to issue citations to property owners AND/OR property lesser and to vehicle owners! Allows law enforcement officers to tow after 24 hours “Any person who violates this Code section shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to a fine not to exceed $1, for each violation or imprisonment for a period not to exceed 12 months, or both.”

20 April 15Prepared by GIADA20 What do the Police care about? Quality of Life Quality of Life Public Safety Public Safety Curbstoning threatens every aspect of these two ideals. Curbstoning threatens every aspect of these two ideals. Think about it! Think about it!

21 April 15Prepared by GIADA21 O.C.G.A. § USED MOTOR VEHICLE DEALERS’ (AND PARTS DEALERS’) REGISTRATION ACT. “Used motor vehicle dealer,” “used car dealer,” or “licensee” means any person who for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale or exchange of an interest in used motor vehicles or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not such motor vehicles are owned by such person. “Used motor vehicle dealer,” “used car dealer,” or “licensee” means any person who for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale or exchange of an interest in used motor vehicles or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not such motor vehicles are owned by such person. The sale of five or more used motor vehicles in any one calendar year shall be prima-facie evidence that a person is engaged in the business of selling used motor vehicles. The sale of five or more used motor vehicles in any one calendar year shall be prima-facie evidence that a person is engaged in the business of selling used motor vehicles. A motor vehicle broker shall be deemed to be a used motor vehicle dealer or a used car dealer for the purposes of this chapter. Any independent motor vehicle leasing agency which sells or offers for sale used motor vehicles shall be deemed to be a used motor vehicle dealer or a used car dealer for the purposes of this chapter. A motor vehicle broker shall be deemed to be a used motor vehicle dealer or a used car dealer for the purposes of this chapter. Any independent motor vehicle leasing agency which sells or offers for sale used motor vehicles shall be deemed to be a used motor vehicle dealer or a used car dealer for the purposes of this chapter.

22 April 15Prepared by GIADA22 O.C.G.A. § and § Must obtain a license (a)It shall be unlawful for any person to operate as a used motor vehicle dealer in this state without first registering and obtaining a license from the used car division as provided in this chapter. (a)It shall be unlawful for any person to operate as a used motor vehicle dealer in this state without first registering and obtaining a license from the used car division as provided in this chapter. (b)A used motor vehicle dealer shall not engage in any activity as a used motor vehicle dealer except at such dealer’s established place of business which has been registered under Code Section (b)A used motor vehicle dealer shall not engage in any activity as a used motor vehicle dealer except at such dealer’s established place of business which has been registered under Code Section

23 April 15Prepared by GIADA23 Thank you! Together, we can make a difference!

24 How to enforce the Curbstoning Law A Recap of O.C.G.A. § : This applies to both owners and lessees of real property: No more than 5 used vehicles within a 12-month period No more than 5 used vehicles within a 12-month period No more than 2 at the same time No more than 2 at the same time If parked, must have prior permission of the property owner/lessee If parked, must have prior permission of the property owner/lessee All vehicles parked must be lawfully titled and registered in the name of the person/entity offering the vehicle for sale All vehicles parked must be lawfully titled and registered in the name of the person/entity offering the vehicle for sale April 15 Prepared by the Norcross Police Department24

25 How to enforce the Curbstoning Law O.C.G.A. § (d) Towing a Vehicle: A law enforcement officer may tow a vehicle parked or displayed for longer than 24 consecutive hours on real property in violation of O.C.G.A. § April 15 Prepared by the Norcross Police Department25

26 How to enforce the Curbstoning Law O.C.G.A. § (d) Towing a Vehicle: If you tow a vehicle for curbstoning, please place a hold on the vehicle. The owner will then have to come to the police department with an ID and proof of ownership in order to get the vehicle released to him/her. At that time, you may issue the owner a citation. April 15 Prepared by the Norcross Police Department26

27 How to enforce the Curbstoning Law Exceptions to O.C.G.A. § (a) (1) If the owner or lessee of the vehicle displayed or parked is employed by the owner or lessee of the real property on which the vehicle is displayed or parked; (2) If the owner or lessee of the vehicle displayed or parked is conducting business with the owner or lessee of the real property on which the vehicle is parked or displayed at the time such vehicle is displayed or parked; or (3) If the real property on which a vehicle is parked is a parking lot for which a fee is charged for the use of such parking lot, the owner or lessee of the parked vehicle has paid the fee for the use of such parking lot, and such vehicle is legitimately parked on the property for purposes other than displaying, selling, or advertising the sale of such vehicle. April 15 Prepared by the Norcross Police Department27

28 How to enforce the Curbstoning Law Information that needs to be recorded in a log book for field work and an Excel spreadsheet for monthly totals:  Date, time, VIN, license plate (if available), year, make, model, color and phone number listed  If possible, also take a digital photograph with a date/time stamp.  Maintain a separate log sheet for each property address. (To determine if that location has exceeded the 5 per year limit.) April 15 Prepared by the Norcross Police Department28

29 How to enforce the Curbstoning Law Two enforcement methods: 1. The “penny test.” 2. The orange stickers. April 15 Prepared by the Norcross Police Department29

30 Questions? April 15Prepared by GIADA30


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