Important Consumer Protection Laws Became effective July, 2007

1. Important Consumer Protection Laws Became effective July, 2007 Prepared by GIADA

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

3. Our Goal Today is… • Inform & educate you ABOUT CURBSTONING! • Explain new Ga. statute 40-2-39.1 • Encourage you to help minimize the problem of curbstoning in your community Prepared by GIADA

4. 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. Curbstoners operate “under the radar.” Prepared by GIADA

5. 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. Prepared by GIADA

6. The DNA of a Curbstoner • Many times Curbstoners are scam artists • 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. • Often will lie about history of a vehicle • Often will lie about mechanical condition • Don’t want a paper trail • Think that they are doing nothing wrong or think they won’t get caught Prepared by GIADA

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

8. Examples Prepared by GIADA

9. 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. Prepared by GIADA

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

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

12. 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. Prepared by GIADA

13. 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. Prepared by GIADA

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

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

16. The other side…Buyers • 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. Prepared by GIADA

17. The Old Rules - § 43-47-8.1 • O.C.G.A. § 43-47-8.1. USED MOTOR VEHICLE DEALERS’ (AND PARTS DEALERS’) REGISTRATION ACT • The problem…? NO TEETH! • Jurisdiction and enforcement were the responsibility of the Used Car Board Licensing Division. • Simply did not have the proper resources Prepared by GIADA

18. The New Rules – §40-2-39.1 • As a result of H.B. 144 that was signed by the Governor in 2007. • Puts the heat on property owners (or business lessee) • No more than 2 on display at same time • No more than 5 in a 12 month period • Some exclusions such as… • Employee • Shopping • Parking • And the best part… The teeth!!! Prepared by GIADA

19. Not only teeth, but VERY SHARP TEETH! THE NEW GEORGIA CODE O.C.G.A. § 40-2-39.1 ~ (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 $1,000.00 for each violation or imprisonment for a period not to exceed 12 months, or both.” Prepared by GIADA

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

21. Together, we can make a difference! Thank you! Prepared by GIADA

22. How to enforce the Curbstoning Law A Recap of O.C.G.A. § 40-2-39.1: This applies to both owners and lessees of real property: • No more than 5 used vehicles within a 12-month period • No more than 2 at the same time • 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 Prepared by the Norcross Police Department

23. How to enforce the Curbstoning Law O.C.G.A. § 40-2-39.1(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. § 40-2-39.1. Prepared by the Norcross Police Department

24. How to enforce the Curbstoning Law O.C.G.A. § 40-2-39.1(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. Prepared by the Norcross Police Department

25. How to enforce the Curbstoning Law Exceptions to O.C.G.A. § 40-2-39.1(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. Prepared by the Norcross Police Department

26. 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.) Prepared by the Norcross Police Department

27. How to enforce the Curbstoning Law Two enforcement methods: • The “penny test.” • The orange stickers. Prepared by the Norcross Police Department

28. Questions? Prepared by GIADA