Mid-Atlantic Dealer News - July 2022

J U LY 2 0 2 2 • M I D AT L A N T I C AU TO D E A L E R S U N I T E D. O R G

MIDATLANTIC

DEALER NEWS

H I G H L I G H T I N G P E N N S Y L V A N I A • M A R Y L A N D • D E L A W A R E

COMPLIANCE ALERT

Changes to the Safeguards Rule & How it Applies to Your Dealership House Judiciary Committee Considers Legislation to Help Stop Catalytic Converter Thefts

AUCTION HIGHLIGHT:

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How to Crush Car Sales in a Social Media World

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MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 1

JULY 2022 | CONTENTS

The official magazine of the

MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION

PENNSYLVANIA • MARYLAND • DELAWARE 1501 North Front St., Harrisburg, PA 17102 (717) 238-9002 midatlanticautodealersunited.org Copyright 2022 Chris Smiley - Advisor Mountville Motor Sales, Columbia, PA rcsmiley@comcast.net

FEATURES 4 |

Noah Melamed- President Ticket to Ride Auto, Lancaster, PA nmelamed@yourttr.com Bert Straub, President - Elect 1st Choice Auto LLC, Fairview, PA bertcstraub@gmail.com

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John DeFilippo - Treasurer DeFilippo Bros. Motorcars, Prospect Park, PA john.m.defilippo@gmail.com Clint Weaver- Secretary America’s Auto Auction Harrisburg, Mechanicsburg, PA clint.weaver@americasautoauction.com Tom Hodges, Vice-President Tom Hodges Auto Sales, Hollywood, MD tom@tomhodgesauto.com Dan Limongelli, Vice-President Jo Dan Motors, Plains, PA jodanmotors@gmail.com Michael Mansour, Vice-President Car Connection, Inc., New Castle, PA mike@carconnection1.com Beth Melamed, Vice-President Ticket to Ride Auto, Lancaster, PA bmelamed@yourttr.com

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Tom Brandis • tombrandis@netscape.net Advantage Auto Sales & Credit, Quakertown, PA Lisa Cohowicz • lisac@nepautoauction.com North East Pennsylvania A/A, Scranton, PA Jeff Dreier • dreierauto@hotmail.com Dreier Auto Sales, Shavertown, PA April Hollobaugh • ajautosalestitusville@gmail.com A&J Auto Sales, Titusville, PA Kevin Luring • k.luring@yahoo.com ADESA PA, York, PA James Makia • james@exclusivemotorcarsmd.com Exclusive Motorcars, Randallstown, MD Dan McNamee • dtlcars@aol.com Daniel Thomas Auto Sales, Croydon, PA Gregg Pachik • gregg.pachik@manheim.com Manheim Philadelphia, Hatfield, PA Kerri Rotunda • kerrir@corryade.com Corry Auto Dealers Exchange, Corry, PA

Changes to the Safeguards Rule & How it Applies to Your Dealership Learning about the updated Safeguards Rule and making the necessary changes now can help you and your dealership avoid substantial Federal penalties and fines. Providing plenty of protection for customer information can also help you attract new and repeat buyers. Read about the five biggest changes.

AUCTION HIGHLIGHT: America’s Auto Auction Erie (Formally Corry Auto Dealers Exchange) Celebrates 76th Anniversary!

On June 9th, America’s Auto Auction Erie, an Xlerate Auto Group Auction, celebrated 76 years of auction service. Dealers from several states attended the special sale event. The auction offered a huge selection of vehicles for customers to bid on, running over 250 cars across 3 lanes.

How to Crush Car Sales in a Social Media World If you’re in the business of selling cars and wish to capture opportunities with potential car buyers outside of the brick & mortar showroom, it’s important to know the steps to selling a car using social media and how to be more effective there.

Safeguards Compliance Course Keep your dealership compliant with the FTC’s safeguards requirements. Ensure your staff knows how to protect consumer information to comply with the FTC requirements and much more!

Compliance Concerns to Consider From a severity perspective, what are the top three compliance concerns that should keep a dealership owner up at night? The concerns on this list are non-negotiable and severe repercussions if not termination should be the only considered outcome.

DEPARTMENTS 2 | 14 | 17 |

Message from the President: The CarLawyer© Legislative Update: House Judiciary Committee Considers Legislation to Help Stop Catalytic Converter Thefts 18 | Auction Directory

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20 Become a MidAtlantic IADA Member 20 | Check out the many MARIADA ON THE SPOT Dealer Services 22 | Membership Application 24 | Order Form for Dealership Supplies (PA & MD) q

MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION SPONSORS

George Smouse • gasmouse@zoominternet.net Smouse Trucks & Vans, Mt. Pleasant, PA Steve Worley • worleymotors@hotmail.com Worley Motors, Enola, PA Jay Zimmerman • jay@zimmermansauto.com Zimmerman’s Auto Sales, Mechanicsburg, PA WOULD YOU LIKE TO RECEIVE A DIGITAL EDITION OF THE MIDATLANTIC DEALER NEWS MAGAZINE? Email shannon@piada.org MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 1

q PRESIDENT’S MESSAGE

NOAH MELAMED PRESIDENT MIDATLANTIC REGIONAL IADA OWNER, TICKET TO RIDE AUTO SALES FINANCE, LANCASTER, PA

New FTC Safeguard Rule will Affect Every Dealer in the USA

After 20 years the FTC’s safeguard rule is changing and it will affect every dealer in the country. Is your dealership ready to make the changes necessary to stay compliant? Does the thought of digging into your compliance procedures sound overwhelming? Are you asking yourself, “What the heck are safeguard rules?” In this issue of Midatlantic Dealer News we are digging into the safeguard rule, the changes coming in December as well as resources to help keep you compliant.

I am not an expert on these rules or the changes but to give some background the FTC established the Safeguard Rule in 2002 as part of the Gramm Leach Bliley act to create standards by which an organization collecting sensitive personal information must adhere to. This means technical, administrative, and physical safeguards for certain information. Essentially, it sets out the measures we as dealers much have in place to keep customer information secure. These measures include things like document retention limits, encryption of digital data, use of passwords and who has access to certain information.

Changes to the FTC Safeguard Rule go into effect on December 9, 2022. Many of these changes focus on reporting and testing of information security, plus documenting an assessment of your organization’s risk factors on a regular basis. There are also changes in standards such as inscription, multifactor authentication, data retention and disposal as well as how our vendors handle data that we provide to them. This is only scratching the surface; it is the responsibility of every dealer who collects and holds personal and sensitive information to understand these changes and their responsibilities under this rule.

Safeguards Compliance Course

our Dealership Compliant with the There are resources available to help you navigate these changes. Please see our Safeguards Requirements feature article on page 4, “Changes to the Safeguards Rule & How It Applies to Your

Dealership” NIADA. MARIADA is also offering r staff knows how from to protect consumer information to a training resource (see page 12).

You’ll find more information in thisexposure usse or by following h the FTC requirements, avoid inadvertent of the QR code here. mer's information, government enforcement actions, nd bad press.

We have all the resources you need to be prepared for these

changes. Stay ahead of it and be ready, December is right you by MidAtlantic Regional Powered contact by the our offices around the corner.

If youIADA. have questions, in Harrisburg or you can reach out to NIADA directly for cation Portal. guidance. n

/www.midatlanticautodealersunited.org/ for info andDEALER registration e QR Code 2 | MIDATLANTIC NEWS | MIDATLANTICAUTODEALERSUNITED.ORG

GET TO KNOW YOUR MID-ATLANTIC STAFF Shannon Becker Associate Executive Director (717) 238-9002 x18 shannon@piada.org Tammy Helman, Title Consultant/ PennDOT Certified Trainer (717) 238-9002 ext. 28 tammy@piada.org Nicole Autry, Dealer Set-Up Unit (717) 317-1966 nicole@piada.org Cynthia Slemons, Membership Specialist (717) 238-9002 x16 cynthia@piada.org Pamela Switalski, Dealer Titles (717) 238-9002 ext. 15 pamela@piada.org Barbara Stake, Online Registration Department (717) 238-9002 x27 barb@piada.org Jessica Lutz, Title Call Center (717) 238-9002 jessica@piada.org Tammy Farmer, Receptionist (717) 238-9002 ext. 10 receptionist@piada.org Heather Levesque, Accounting (717) 238-9002 heather@piada.org

• JULY 2022

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 3

COVER STORY

Changes to the SAFEGUARDS RULE & How it Applies to Your Dealership

BY NIADA DASHBOARD

4 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

The Safeguards Rule is part of the Gramm-Leach-Bliley Act, and it requires financial institutions to protect the information of customers.

This rule includes the finance departments of dealerships.

The Federal Trade Commission (FTC) updated the Safeguards Rule on October 27, 2021, and the changes will become effective on October 27, 2022. Learning about the updated Safeguards Rule and making the necessary changes now can help you and your dealership avoid substantial Federal penalties and fines. Providing plenty of protection for customer information can also help you attract new and repeat buyers. Here are the five biggest changes to the Safeguards Rule.

Broader Requirements

Before these changes, the Safeguards Rule offered very little detail about the requirements for an effective program to safeguard customer information.

The new Safeguards Rule requires financial institutions to encrypt all customer information, whether it’s being transmitted through an online network or being stored in dealership files.

The authentication process to access this information must require at least two knowledge factors, possession factors, or inherence factors.

A knowledge factor can be a password, a PIN, or the answer to a security question.

A possession factor is based on the items you have with you. For example, you might need to enter a onetime password or PIN sent to your smartphone. Inherence factors use biometric characteristics, and they can include facial recognition, iris scanning, or fingerprint recognition.

The amended Safeguards Rule applies to any information provided by the consumer, resulting from a consumer transaction, or obtained in connection with a transaction.

This includes lists of customers and their contact information that aren’t publicly available. It also applies to internet cookies.

the dealership’s information security program, its compliance with the Safeguards Rule, and any issues related to:

A Written Risk Assessment

Reports should also include recommendations for improvements to the information security program from the qualified individual.

Dealers must base their information security programs on written risk assessments. Every written risk assessment must have criteria for categorizing and evaluating risks and threats. It must also contain the criteria for assessing the confidentiality, availability, and integrity of customer information; the systems used to store it; and how vulnerable they are to hackers, identity thieves, and other potential threats.

Risk assessments must also include a description of how the risks or threats mentioned will be mitigated and how the institution will implement appropriate safeguards.

A Qualified Individual

Dealers and other financial institutions must designate a single qualified individual to supervise, implement, and enforce their information security programs. With just one person in charge, several employees won’t need to coordinate their actions. Keeping track of program rules and changes can become easier as well.

The qualified individual can be an employee, contractor, or service provider. The Safeguards Rule doesn’t require any education, experience, or certifications.

However, you should choose someone who understands the company’s information system, what data the dealership stores about customers, and how the finance department works. Most dealers designate a manager as the qualified individual.

Regular Reports

The qualified individual will need to submit regular reports to senior managers, board members, or executives about data security safeguards. They must report once per year about the overall status of

A Written Incident Response Plan

The new Safeguards Rule also requires a written incident response plan to help dealerships and other financial organizations respond promptly to security events and recover from them quickly. Written incident response plans must include: • The goals of the plan • Internal processes and procedures for responding to a security event • Clear definitions of roles, responsibilities, and levels of authority for everyone who works with customer information • Rules for external and internal communications and information sharing • Requirements for correcting any weaknesses in information systems or controls soon after they’re identified • Documentation and reporting rules for security events and related responses • Provisions for evaluating and revising the incident response plan after security events and when otherwise needed.

Dealerships that collect data from fewer than 5,000 people are exempt from the incident response plan, written risk assessment, and annual reporting requirements. n NIADA is the only national association representing independent automobile dealers. NIADA provides legislative advocacy and extensive training and educational resources geared to improve dealership operations. Learn more about how NIADA can help your dealership handle the changes associated with this new legislation and more: niada.com/why-niada/

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 5

AUCTION HIGHLIGHT

America’s Auto Auction Erie (Formally Corry Auto Dealers Exchange)

Celebrates 76th Anniversary!

On June 9th, America’s Auto Auction Erie, an Xlerate Auto Group Auction, celebrated 76 years of auction service. Dealers from several states attended the special sale event.

The auction offered a huge selection of vehicles for customers to bid on, running over 350 cars across 3 lanes. Dealers were provided free food and the auction hosted a huge prize give-away.

For many years, America’s Auto Auction Erie has combined this sales event with the opportunity to raise donations to benefit Barber National Institute. Barber National Institute provides many quality services to children and adults with autism, intellectual disabilities or behavioral health challenges and their families. “We take pride in the support that we have shown Barber National Institute through the years. This event is an amazing time for us to join with our dealer partnerships and continue to give back to the community and show our appreciation for the tremendous support the community has given to us for the past 76 years,” explains Kerri Rotunda, Auction General Manager.

For every vehicle purchased during the sale, the auction donated $5 to Barber National Institute on behalf of their dealers. America’s Auto Auction Erie, also pledged to match this donation during their 76th Anniversary Celebration Sale. “It’s a very exciting time for all of us at America’s AA Erie, we look forward to continued growth and many more years of success in the auto industry,” says Rotunda. n

Kerri Rotunda

6 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

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How to Crush Car Sales in a Social Media World

By Susan Gaytan, Director of Dealer Engagement & Training, Alan Ram’s Proactive Training Solutions If you’re in the business of selling cars and wish to capture opportunities with potential car buyers outside of the brick & mortar showroom, it’s important to know the steps to selling a car using social media and how to be more effective there. It is a growing medium that takes a whole new skill set that differs from the traditional method of selling cars. Most salespeople are lost when it comes to how to sell a car via social media and or how to be a good car salesman on this newer lead platform, and therefore don’t see the results they want.

THE NEW RETAIL LANDSCAPE POST COVID-19 Car

shoppers’

behavior

and

buying

preferences have completely shifted as a result of COVID-19. According to Alan Haig, the president of Haig Partners and an automotive retail consultant, in 2021, approximately 30% Of U.S. retail car sales were completed online, compared to 2% before the pandemic. A vast percentage of shoppers have now shifted to using online buying tools & resources. The question is no longer who is on social media these days but who isn’t? 4.48 billion people use social media, and yes, that includes your potential car buyers!

A Facebook study found that 62% of car buyers find their car online, and 78% find social media useful when deciding upon a new automobile purchase.

8 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

Unfortunately, most car salespeople do not leverage social media to sell more cars and instead will wait for the next fresh up.

And, if they do, there is no strategy. So, it is important to have some car sales training specifically on how to convert more leads and opportunities on social media, as it might differ greatly from what you are currently flooding your social media content with, that is if you are leveraging social media to sell at all

SOCIAL SELLING TIPS TO CULTIVATE ONLINE CAR SHOPPERS

Some key points to consider: • You don’t want to SELL on social

even have special social media initiatives or a marketing team to assist in that area. Either way, the fact remains that more shoppers are viewing and scrolling through social media than walking into your dealership, or even calling or emailing you.

The question is, are you doing this whole social media thing the right way, or do you revert to old-school car strategies and just throw a bunch of car photos up to see if anyone bites? Maybe you post your occasional “really rare car” photo or share the dealership’s posts whenever you remember. But are you standing out? Are viewers finding you appealing? Are you truly selling yourself, your dealership, and an exceptional car-buying experience?

Social media can be quite the game-changer when done right and I know people in this industry who have leveraged it to change their careers and even their lives!

media, but rather cultivate connections that will turn into leads.

• Social media is the ultimate “farming technique” that will yield future loyal customers and shoppers will end up coming to you. (VERSUS the one-anddone sale) • All shoppers are the same whether calling, clicking, or, in this case, scrolling. They all have the same fears and reservations about buying a car, so the messaging needs to be the same about overcoming the common challenges.

• Your content is ultimately the key to standing out on social media.

WHEN IT COMES TO SOCIAL SELLING, OLD-SCHOOL TACTICS DON’T WORK!

Most dealership managers today understand the opportunity and the vast number of shoppers that exist on Facebook, Instagram, LinkedIn, and other social platforms that continue to grow in popularity. Some of you might

The challenge for most people is the HOW. Many people in this business have a lack of understanding of how social media works and get discouraged or impatient when they don’t see immediate results.

SOCIAL MEDIA: THE ULTIMATE SALES FARMING TECHNIQUE

Selling on social media is the ultimate farming technique for sales. With a little thought and strategy, over time you can cultivate a wealth of exponential opportunities and shoppers looking for you and contacting you first. But in this industry, many of us lack the patience required. Yes, time, strategy and patience prevent people from sticking to it. Don’t be that old-school hunter that simply reacts and just waits for “something to pass to shoot”. That short-term mentality is precisely the reason most people don’t ever succeed on social media.

THE NEED FOR COMPELLING CONTENT: CONSUMERS STILL NEED TO TRUST YOU

At the end of the day, the same shoppers that call or email you are also the ones browsing

social media. They have the same fears, the same reservations, and they have the SAME misconceptions about “car sales.”

Social media is part of your digital showroom and more people scroll your feed than will ever walk into your showroom. And your content on social media is ultimately what sets you apart from everyone else. Shoppers STILL want someone to trust, someone who will be transparent, and most importantly someone likable!

And no, this doesn’t mean you have to look like a Hollywood glam star. Your posts should be a genuine extension of you and your dealership, and what makes you unique and relatable. Your content is the key to attracting more viewers and eventually engaging more potential customers.

Don’t do a one-and-done and simply post content based on sales, discounts, and offers.

These types of posts simply don’t engage people and they don’t create connections.

Be the trusted sales advisor. Engage with these social media prospects as these days, there are exponentially more opportunities outside the showroom.

Every shopper wants to feel valued.

Showcase how you take care of your customers – this is your differentiator.

SOCIAL SELLING: CREATE CONNECTIONS AND KEEP UP WITH CURRENT BUYERS

A younger generation of buyers is coming into the market so don’t exclude them from your reach. The bottom line with social media is please don’t just go for the quick sale – and don’t flood your page with “sales’ ‘ related pitches. People will sense your desperation. Social media is about creating connections, building trust and confidence, and being the advisor that everyone wants to go to. And, perhaps best of all, there is little to no cost to get started on social media, yet the potential results are limitless. To your success! n

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 9

2nd Annual Summer Slam Car Show Sunday, August 7 | 11 AM - 3 PM Hosted by Manheim Baltimore-Washington to benefit Howard County Police Retired Officers’ Association 7120 DORSEY RUN ROAD | ELKRIDGE, MD | 21075

FREE & OPEN TO THE PUBLIC • EVENT IS RAIN OR SHINE Ample parking available at no cost!

FOR VEHICLE ENTRIES ONLY:

$20 Registration To download the Registration Form go to www.hcproa.com A variety of Food Trucks will be on site.

Pipe Band Presentation at 12:00 PM Trophy Ceremony at 2:30 PM

Rules of Show:

All Manheim and Maryland state traffic laws must be obeyed Speed limit on lot is 15 MPH • No animals allowed • No alcohol is allowed

10 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

MANHEIM BALTIMORE-WASHINGTON PRESENTS

JOIN US ON TUESDAY, AUGUST 9!

2000 UNITS

Summer Slam is BACK! Please join us for our 6th Annual Summer Slam event sale and enjoy a day of home runs, hot dogs, and amazing inventory!

16 LANES

First 200 clients in the door will get a complimentary lunch ticket from Jimmy's Famous Seafood, a commemorative Summer Slam tee-shirt, and the chance to get an autographed baseball by our Super Secret Celebrity Guest!

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 11

Safeguards Compliance Course Keep Your Dealership Compliant with the FTC's Safeguards Requirements Ensure your staff knows how to protect consumer information to comply with the FTC requirements, avoid inadvertent exposure of your customer's information, government enforcement actions, lawsuits, and bad press.

Brought to you by MidAtlantic Regional IADA. Powered by the Dealer Education Portal.

Visit https://www.midatlanticautodealersunited.org/ Or scan the QR Code for info and registration

Only $75 for the Qualified Individual Only $49 Each for All Other Employees Sample policies and agreements are included at no additional charge

The course is flexible and on-demand to fit your busy schedule

Volume purchase discounts available for members

All users earn a certificate upon completion

12 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

FEATURE

COMPLIANCE CONCERNS TO CONSIDER

BY PENELOPE BELL

As compliance “gurus” in the field, we assist dealers around the country with their compliance needs. We conduct over a 1000 compliance reviews each year; our clients range from small automotive groups to large public groups with 80 plus rooftops. We also attend industry trade shows, summits, and conferences. Often, we have the opportunity to share our knowledge on compliance, but also take in knowledge from others in the industry. The one common question we receive, whether it be at a speaking engagement or during a dealership recap, what are the top compliance concerns you see and/or hear about as you work with dealerships across the country. To be even more specific, could we provide an answer based on severity of the concern and the frequency of the concern.

From a severity perspective, what are the top three compliance concerns that should keep a dealership owner up at night? The concerns on this list are non-negotiable and severe repercussions if not termination should be the only considered outcome.

Forgeries Forgery needs no explanation. Plain and simple, never sign or ask another person to sign any documents on behalf of the customer. Even with the customer’s permission, documents should never be signed on their behalf.

Powerbooking The practice of powerbooking is showing non-existent options on a used car to increase the vehicle value on the bookout worksheet that is sent to the lender. This value is used by the lender to determine the

deals loan to value ratio. Falsifying the vehicle options to increase the value should be strictly forbidden. We recommend as a best practice, have the responsible employee sign off attesting to the accuracy of the options listed on the bookout worksheet.

Straw Purchase A deal is considered a straw purchase when a person who is primarily driving and purchasing the vehicle, is not a party on the RISC or Lease Agreement. A dealer should never deliver a deal he/she knows to be a straw purchase.

Forgeries, powerbooking and straw purchases are not only considered bank fraud, but can result in buybacks, suspicious activity reports being filed by the lending institution, investigations, fines, and jail time.

Now on to the compliance concerns we see based on frequency. Like the concerns listed above, these are high on our radar and are considered what we call elevated concerns. They hold a high point deduction on our scoring model and if they arise in your dealership, corrective action should be taken immediately.

Credit Application Fraud Credit application fraud is when the dealer modifies, coaches, or misrepresents the information provided by the customer in the five key determinant areas on a credit application. These key credit determinants are what the lenders take into consideration when making a credit decision. When the determinants are altered, it is usually done to circumvent underwriting guidelines or make the deal appear more favorable. To

learn more about the five key credit determinants, check out my article, “The 5 Key Credit Determinants.”

Identity Theft The second highest risk dealers face is identity theft. With ID thieves running rampant, getting smarter and more cunning, dealers need to vet, vet and vet some more before delivering a vehicle. Ensure you have the correct person in front of you by closely examining the identification, appropriately managing the Red Flags process, and taking a step back if there is a credit bureau alert. Do not ignore the warning signs or the dealership can take a huge hit.

Payment Packing Payment packing is a practice that occurs when a payment quoted to a customer is more than the actual payment required to purchase the vehicle for the price agreed upon at that point in the negotiation. There are several forms of payment packing: • Using an APR not consistent with the bureau score • Using more than a $10 payment range • Using more than 45 days to first payment • Including undisclosed F&I product(s) in the payment quote • Adding an arbitrary amount to a true payment All dealers at one time or another have been exposed to one or more of compliance concerns discussed above. They need to stay vigilant, make it known these practices will not be tolerated and discipline the employees who continue to put them at risk! n

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 13

The CARLAWYER

©

By Eric Johnson, Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery® Here’s our monthly article on selected legal developments we think might interest the auto sales, finance, and leasing world.

This month, the developments involve the Consumer Financial Protection Bureau, Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Federal Trade Commission, and the New York attorney general. As usual, our article features the “Case(s) of the Month” and our “Compliance Tip.” Note that this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you or if you have questions.

FEDERAL DEVELOPMENTS On April 29, the Consumer Financial Protection Bureau announced a proposed stipulated resolution in a case against a general debt settlement company, a student loan debt relief company, and their joint CEO. The Bureau alleged that the student loan debt relief company charged over 9,000 consumers approximately $10.5 million in illegal upfront fees. Further, the Bureau alleged that the general debt settlement company used deceptive sales tactics to register certain customers for debt relief services, including through a “ruse” in which sales agents falsely told customers that they were being considered for new loans. Finally, the Bureau alleged that the individual defendant participated directly in the violations and had the authority to control them as the CEO of both companies, sole owner of the student loan debt relief company, and majority owner of the general debt settlement company. In addition to $11 million in monetary relief, all of which is suspended, and a $30,000 civil money penalty to be paid by the CEO, the order imposes industry bans on the defendants.

On May 2, the Consumer Financial

Protection Bureau released a new edition of its Supervisory Highlights report, which summarizes violations of federal consumer financial laws identified by the Bureau during its supervisory examinations completed between July and December 2021. The report highlights findings from examinations in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittances, and student loan servicing. The report also includes a summary of recent developments in the Bureau›s supervision program and recent remedial actions.

On May 5, the Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency jointly proposed to amend the regulations implementing the Community Reinvestment Act to update how CRA activities qualify for consideration, where CRA activities are considered, and how CRA activities are evaluated. Some key elements of the proposal include: expanding access to credit, investment, and basic banking services in low- and moderate-income communities; adapting to changes in the banking industry, including online and mobile banking, branchless banking, and hybrid models; providing greater clarity, consistency, and transparency; tailoring CRA evaluations and data collection to bank size and type; and maintaining a unified approach from the bank regulatory agencies. Comments on the proposal are due by August 5, 2022.

On May 6, the Consumer Financial Protection Bureau released its annual fair lending report to Congress highlighting the agency’s supervision, enforcement, guidance and rulemaking, and other efforts last year to ensure fair, equitable, and nondiscriminatory access to credit by consumers.

On May 9, the Consumer Financial Protection Bureau issued an advisory opinion to affirm that the Equal Credit Opportunity Act and Regulation B prohibit creditors from discriminating against consumers after they

14 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

have applied for and received credit, not just during the application process. The advisory opinion also clarifies that the ECOA requires creditors to provide adverse action notices to consumers with existing credit, including for a revocation of credit or an unfavorable change in the terms of a credit arrangement.

On May 11, the Consumer Financial Protection Bureau issued a blog post that provides links to Spanish translations of various disclosures used by financial institutions, including prepaid card model forms, adverse action sample notices, loan estimate and closing disclosure forms used by mortgage loan originators, early intervention clauses used by mortgage servicers to offer options to delinquent borrowers, notices related to credit reporting and model forms for firm offers of credit, and debt collection model validation notices. In the post, the Bureau encourages financial institutions to use these disclosures when working with Spanish-speaking consumers.

On May 16, the Consumer Financial Protection Bureau announced that it will now issue Consumer Financial Protection Circulars to federal and state government agencies that are responsible for enforcing federal consumer financial law. According to the Bureau›s release, «[g]iven the broad variety of agencies responsible for enforcing federal consumer financial law, there is a risk that companies might encounter inconsistent enforcement strategies and approaches.

One of the CFPB›s statutory objectives is to ensure federal consumer financial law is enforced consistently regardless of the status of a person as a chartered bank or nonbank.

Many entities are subject to the jurisdiction of multiple agencies, and to maintain certainty of expectations for those companies with multiple regulators, it is important for state and federal government agencies to consistently enforce the laws that the CFPB administers. Consistency is also imperative to creating a level playing field between companies that compete in the same market but are subject to the jurisdiction of different enforcers.»

On May 19, the Consumer Financial Protection Bureau issued an interpretive rule affirming the states’ ability to enforce the Consumer Financial Protection Act of 2010, including a provision that makes it unlawful for covered persons or service providers to violate federal consumer financial protection laws. The interpretive rule also provides that states can pursue claims and actions against a broad range of entities. In addition, states are not restricted from bringing enforcement actions in coordination with the Bureau or from bringing enforcement actions to stop or remediate harm that is not addressed by a Bureau enforcement action against the same entity.

On May 19, the Federal Trade Commission announced that it is proposing updates to its guides on the use of endorsements and testimonials in advertising to, among other things, reflect the extent to which advertisers are increasingly using social media and product reviews to market their products and services and address issues that arise when advertising to children. The FTC is seeking public comment on the proposed updates to the guides. The guides, first issued in 1980 and amended in 2009, are designed to assist businesses and others in conforming their endorsement and testimonial advertising practices to the requirements of Section 5 of the FTC Act. The agency notes that, although the guides interpret laws administered by the FTC and are thus advisory in nature, proceedings to enforce the requirements of law as explained in the guides can be brought under the FTC Act. On May 23, the Consumer Financial Protection Bureau and the New York attorney general announced a proposed stipulated judgment in the U.S. District Court for the Western District of New York against “a network of interrelated companies” and individuals to settle allegations of unlawful debt collection practices. The Bureau and the AG alleged that the defendants “generated gross revenues of approximately $93 million between 2015 and 2020” through a variety of “deceptive and other illegal [debt] collection tactics,” in violation of the Fair Debt Collection Practices Act, the Consumer Financial Protection Act, and New York law.

Specifically, the Bureau and the AG alleged that the defendants: (1) made false threats to induce payments, including threats of arrest, imprisonment, and property garnishment;

(2) inflated the amount of the outstanding debt in order to convince consumers to reach settlements for the full amount actually owed; (3) disclosed the debt to third parties; (4) harassed consumers with repeated phone calls; and (5) failed to provide legally required disclosures. The defendants agreed to the proposed settlement without admitting these allegations, though they consented to permanent bans from the debt collection industry and the entry of an order to pay $4 million, with an escalator clause to $5 million if payments are not made timely.

On May 24, the Federal Trade Commission released guidance to help small businesses comply with its Safeguards Rule, which requires entities covered by the rule to maintain adequate safeguards to protect the security of customer information. The FTC amended the Safeguards Rule in December 2021.

On May 26, the Consumer Financial Protection Bureau released Circular 202203 to remind creditors that the Equal Credit Opportunity Act requires them to explain to applicants the specific reasons for denying an application for credit or taking other adverse action, even if the creditors are relying on credit models using complex algorithms.

The question presented in the circular was: “When creditors make credit decisions based on complex algorithms that prevent

creditors from accurately identifying the specific reasons for denying credit or taking other adverse actions, do these creditors need to comply with the [ECOA’s] requirement to provide a statement of specific reasons to applicants against whom adverse action is taken?” The Bureau answered in the affirmative, stating that “ECOA and Regulation B require creditors to provide statements of specific reasons to applicants against whom adverse action is taken. Some creditors may make credit decisions based on certain complex algorithms, sometimes referred to as uninterpretable or ‘blackbox’ models, that make it difficult - if not impossible - to accurately identify the specific reasons for denying credit or taking other adverse actions. The adverse action notice requirements of ECOA and Regulation B, however, apply equally to all credit decisions, regardless of the technology used to make them. Thus, ECOA and Regulation B do not permit creditors to use complex algorithms when doing so means they cannot provide the specific and accurate reasons for adverse actions.” Notably, the Bureau highlighted the “central role” that whistleblowers play in uncovering information about companies using technologies that violate ECOA and other federal consumer financial protection laws and encouraged employees of those companies to provide the Bureau with information. (Continued on next page)

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CASE(S) OF THE MONTH Dealership that Loaned Vehicle for Free to Customer Whose Vehicle Was Being Repaired Was Protected by Graves Amendment from Vicarious Liability for Damages Sustained

by Person Injured in Accident with Customer: A woman was injured when the car she was driving collided with a car driven by a man and owned by a dealership, which had loaned it to the man while his wife›s vehicle was being repaired. The woman sued the dealership for damages under a theory of vicarious liability. The dealership argued that it was not liable for any damages from the accident because it was protected by the Graves Amendment, which provides that a vehicle owner that rents or leases a vehicle to a person is not liable under state law by reason of being the owner of the vehicle for harm to persons or property resulting from use, operation, or possession of the vehicle if the owner is engaged in the trade or business of renting or leasing vehicles and there is no negligence or criminal wrongdoing on the part of the owner. The parties cross-moved for summary judgment, and the trial court granted the dealership›s motion and denied the woman›s motion as moot. On appeal, the

woman argued that the Graves Amendment did not apply because the dealership did not rent or lease the vehicle to the man and used the conflicting labels of «rental» and «loaner» for the vehicle.

The U.S. Court of Appeals for the Eleventh Circuit determined “that to rent or lease a vehicle requires an exchange of consideration for the use of the vehicle.” In this case, the appellate court found that there was consideration between the man and the dealership because the man was granted use of the loaner in exchange for allowing the dealership to service his wife’s car and to charge him for performing that service.

The appellate court rejected the woman’s argument that there can be no rental for purposes of the Graves Amendment without payment specifically for use of the car. The appellate court also rejected the woman’s argument that the dealership’s use of the term “loaner” in some instances “control[led] the legal determination of whether the Graves Amendment applies.”

Instead, the appellate court concluded that the “substance of the transaction, not the label used, controls.” See Thayer v. Randy

Marion Chevrolet Buick Cadillac, LLC, 2022 U.S. App. LEXIS 9957 (11th Cir. (M.D. Fla.) April 13, 2022).

COMPLIANCE TIP Our Case of the Month features an issue that could certainly happen to your dealership if you provide “loaner” vehicles to your customers. When was the last time you had your loaner vehicle documents reviewed by knowledgeable counsel for issues like those raised in our Case of the Month?

Do they refer to the vehicle as a “rental” or “loaner” or some other term? If it’s been a while since they were reviewed, it’s time to send those documents to your friendly and knowledgeable counsel for review!

Eric (ejohnson@hudco.com) is a Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery®, a monthly legal newsletter for auto dealers and a contributing author to the F&I Legal Desk Book. Visit .counselorlibrary. com. ©CounselorLibrary.com 2022, all rights reserved. Single publication rights only to the Association. HC# 4876-1341-5715.

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2/14/22 5:15 PM

q LEGISLATIVE UPDATE

House Judiciary Committee Considers Legislation to Help Stop Catalytic Converter Thefts

By Tyler Burke, Associate, Milliron & Goodman Government Relations On May 24, 2022, the House Judiciary Committee held a voting meeting to consider multiple pieces of legislation.

Included on the agenda were two bills that would help to stop catalytic converter theft in the Commonwealth.

House Bill 2290 (Isaacson-D) amends Title 18, in theft and related offenses, by adding catalytic converter to the definition of “secondary metal.” This piece of legislation was voted unanimously from committee and is now before the full house for consideration. PIADA has sent a letter of support for House Bill 2290 as we believe it will go a long way to help stem the ever-increasing tide of catalytic converter thefts that have been occurring across Pennsylvania.

The committee also considered House Bill 1092 (Kauffman-R) which amends the Scrap Material Theft Prevention Act further

q Tyler Burke Associate Milliron Goodman Tyler is currently responsible for providing research, bill analyses, and legislative updates to ensure clients have the most current and accurate information available. Tyler also helps to create and implement grassroots initiatives and draft legislation and amendments with a focus on transportation, healthcare, and education policy. Tyler formerly worked as a paralegal at the law firm of Kepner, Kepner & Corba. He earned a degree in Political Science and Philosophy from Susquehanna University.

providing for identification requirements for sale of scrap materials to processors and recycling facilities and for penalties. It establishes identification requirements for scrap materials that exceed $100 or scrap materials that bear a name or mark under 54 Pa.C.S. Ch. 15 (relating to reusable marked articles and receptacles).

operators that violate the act commit a summary offense and are subject to a fine of up to $2,500 with a second or subsequent violation being classified as a misdemeanor of the third degree. House Bill 1092, as amended, was reported unanimously from committee and is now before the full House for consideration.

During committee consideration, the bill was amended to add language that creates additional requirements for catalytic converters, requires that methods of tracking be established to track transactions, and establishes holding periods for transactions involving a catalytic converter. Specifically, it establishes that scrap processors or recycling facility operators that fail to collect the information under subsection (A) or (A.1) are guilty of a misdemeanor of the third degree and subject to a fine of not less than $5,000. It also establishes that scrap processors or recycling facility

As these bills continue through the legislative process, we will keep you apprised of further activity on them or any other piece of legislation that may affect your industry. n

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AUCTION DIRECTORY PENNSYLVANIA ADESA MERCER 758 Franklin Road, Mercer, PA 16137 724.662.4500 / Fax: 724.662.8716 Friday 9:00 AM Office M-W: 9-4:00; TH: 9-5:00; F: 8-5:00 adesa.com

CORRY AUTO DEALERS EXCHANGE P.O. Box 317, 12141 Route 6 West Corry, PA 16407 814.664.7721 / Fax: 814.664.7724 Thursday 10:00 AM 3 Lanes Dealer Consign, Fleet/Lease corryade.com

ADESA PA I-83 Ex. 28 (Old Ex. 12), 30 Industrial Rd. York, PA 17406 717.266.6611 / Fax: 717.266.7650 Wednesdays 9:00 AM; INOPS 8:30 AM Specialty Sale every 4th Wed 8:30 AM adesa.com

GARDEN SPOT AUTO AUCTION Robert Rd. & Apple St., Ephrata, PA 17522 717.738.7900 / Fax: 717.738.7930 Tuesday 10:00 AM gardenspotautoauction.com

ADESA PITTSBURGH 378 Hunker Waltz Mill Rd. New Stanton, PA 15672 724.925.4700 / Fax: 724.925.4701 Tuesday 9:00 AM pittautoauction.com AMERICA'S AA - HARRISBURG 1100 S. York St., Mechanicsburg, PA 17055 717.697.2222 / Fax: 717.697.2234 Thursday 8:45 AM harrisburgautoauction.com AMERICA’S AA - LANCASTER 1040 Commercial Ave., P.O. Box 406 East Petersburg, PA 17520 717.569.5220 / Fax: 717.569.3109 Weekly Sales Wed. 9:00 AM INOPS 8:30 AM americasautoauction.com AMERICA’S AA - PITTSBURGH 55 E. Buffalo Church Rd. Washington, PA 15301 724.225.1777 / Fax: 724.225.7223 Thursday 12:30 PM americasautoauction.com BLOOMSBURG AUTO AUCTION 25 Ridge Road, Bloomsburg, PA 17815 570.784.2306 Wednesday 10:00 AM bloomaa.com CENTRAL PENNSYLVANIA AA Exit 178 of I-80, Lock Haven, PA 17745 800.248.8026 / Fax: 570.726.7841 Thursday 9:45 AM Office: MTF 8-5:30 W-Th 8-6:00 cpaautoauction.com

GREATER ERIE AUTO AUCTION 7700 Avonia Road, (Exit 16 of I-90 & PA Route 98) Fairview, PA 16415-0916 814.474.3900 / 877.474.GEAA Fax: 814.474.4969 Tuesday 1:45 PM greater-erie.com LEHIGH VALLEY AUTO AUCTION 3880 Lehigh St., Whitehall, PA 18052 610.435.5554 / Fax: 610.435.5557 Wednesday 5:00 PM lehighvalleyautoauction.com MANHEIM KEYSTONE 488 Firehouse Road, Grantville PA 17028 717.469.7900 / Fax: 717.469.2842 Every Monday 11:00 AM manheim.com MANHEIM PENNSYLVANIA 1190 Lancaster Rd., Manheim, PA 17545 717.665.3571 / Fax: 717.665.9265 Exotic Highline Sales every other Thursday - 9:00 AM Every Friday Sale 8:30 AM manheim.com MANHEIM PHILADELPHIA 2280 Bethlehem Pike, Hatfield, PA 19440 215.822.1935 / Fax: 215.822.8140 Tuesday 9:30 AM TRA Sale - Tuesday 12:30 PM Office: M-Th 8:30-5:00; F 8:30-1:00 manheim.com MANHEIM PITTSBURGH AA 21095 Route 19, Cranberry Twp., PA 16066 724.452.5555 / Fax: 724.452.1310 Wednesday 9:00 AM manheim.com

18 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

NORTH EAST PENNSYLVANIA AA 860 N. Keyser Ave., Scranton, PA 18504 570.207.CARS / Fax: 570.207.1860 Tuesday 10:00 AM nepautoauction.com PERRYOPOLIS AUTO AUCTION Route 51 S. Perryopolis, PA 15473 724.736.4445/ Fax: 724.736.0466 Friday 9:45 AM perryautoauction.com MARYLAND BSC AMERICA/BEL AIR AUTO AUCTION P.O. Box 200, 4805 Philadelphia Rd. Belcamp, MD 21017 410.879.7950 / Fax: 410.893.1515 Thursday 8:30 AM at Clayton Station Thursday 8:00 AM at Bel Air in Belcamp bscamerica.com MANHEIM BALTIMORE-WASHINGTON 7120 Dorsey Run Rd., Elkridge, MD 21075 410.796.8899 / Fax: 410.799.0512 Tuesday Sale, 9:30 AM Tuesday Frontline Sale, 9:00 AM TRA/Salvage, 1:00 PM manheim.com NEW JERSEY ADESA AUCTION OF NEW JERSEY 200 N. Main, Manville, NJ 08835 908.725.2200 / Fax: 908.725.3446 Consignment Sale Thursdays 8:45 AM Topline Sale 9:00 AM monthly Thursdays GM Factory Sale Bi-weekly Tuesdays 10:00 AM adesa.com MANHEIM NEW JERSEY AA 730 Rte. 68, P.O. Box 188 Bordentown, NJ 08505 609.298.3400 / Fax: 609.298.4489 Wednesday 9:00 AM manheim.com NEW YORK ADESA BUFFALO 12200 Main St., Akron, NY 14001 716.542.3300 / Fax: 716.542.3547 Sale Tuesday 9:00 AM Boat & RV Sale 2nd Tuesday Monthly 11:00 AM Ford Factory Tuesday Monthly 9:00 AM Office: M-Tu: 8-5, W: 8-4, Th: 9-4, F: 9-3 ADESA.com/Buffalo

ADESA LONG ISLAND 425 Patchogue Yaphank Rd. Yaphank, NY 11980 631.205.5000 adesa.com/longIsland ADESA SYRACUSE 5930 State Rte. 31, Cicero, NY 13039 315.699.2792 adesa.com/syracuse

M A R I A’ S TA G & T I T L E

BUFFALO AUTO AUCTION 5300 Lockport Road Lockport, NY 14094 716.549.4800 deeregunner@hotmail.com MANHEIM ALBANY 459 Route 146, Clifton Park, NY 12065-0440 518.371.7500 jay.waterman@manheim.com manheim.com MANHEIM NEW YORK AA 2000 Dealer Drive, Newburgh, NY 12550 845.567.8400 / Fax: 845.567.8410 Every Thursday 9:00 AM Ford Factory Closed Sale Bi-Weekly 10:00 AM Heavy Truck & Equipment Sale First Thursday of the Month 11:00 AM manheim.com MANHEIM ROCHESTER 20 Cairn Street, Rochester, NY 14611 585.328.2277 sara.fico@coxautoinc.com manheim.com ROCHESTER- SYRACUSE AUTO AUCTION 1826 State Route 414, P.O. Box 129 Waterloo, NY 13165 315.539.5006 sprankie@rsautoauction.com rsautoauction.com STATE LINE AUTO AUCTION 830 Talmadge Hill Rd. S. Waverly, NY 14892 607.565.8151 / Fax: 607.565.8659 GM Financial Open Sale –EVERY Friday, 9:20 AM GM Financial Closed Sales as Scheduled Dealer Consignment Sale –EVERY Friday, 9:20 AM statelineauto.com WEST VIRGINIA MOUNTAIN STATE AUTO AUCTION Route 2, Box 835, Shinnston, WV 26431 304.592.5300 / Fax: 304.592.3510 Monday 10:30 AM Office: 9:00-5:00 mtstateaa.com

YOUR OUT OF STATE RETAIL WORK MARIADA is excited to share a recent partnership with Maria’s Tag & Title.

We know how vital it is for your dealership to operate efficiently to maximize profits, which is why we now offer members a great solution for out of state retail work. Maria’s Tag & Title is a direct resource for processing out of state deals for vehicles sold to customers residing in Maryland, Delaware, DC, West Virginia, Virginia, North Carolina, and now New York!

Dealers may outsource as much or as little as they prefer.

For full details, please visit

mariada.org/mtag

or contact the Association at (717) 238-9002.

Feel free to ring PIADA for any of your Pennsylvania titling needs.

(717) 238-9002 MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 19

BECOME A MEMBER, ACCESS THOU$ANDS IN BENEFITS! » $20,000 Savings with Dealer Discount Book » Dealer Services & Licensing Assistance » Title Call Center » Online Title & Registration Services » Dealer, Retail, & Salvage Title Processing » Discounted Forms & Supplies

» Messenger Services » National & Local Lobbying for Dealers » Print & Digital Trade Publications » Timely Dealer News Updates » Audit Prep Assistance » NIADA Membership

Discover the power of membership! 717-238-9002 MidAtlanticDealerNews-JULY2022-PRINT.pdf

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WHY WAIT? You can get DEALER TITLES processed ON THE SPOT or within 24 hours!

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At our offices! M-F: 9am-2pm 1501 North Front Street Harrisburg, PA 717-238-9002 _____

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More specifically, the benefits of the MidAtlantic IADA membership include many helpful services, products, educational courses, national representation and much more!

20 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

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2022 ADVANCED ISSUING AGENT TRAINING COURSES 2022 ADVANCED ISSUING IN PERSON AT THE AGENT TRAINING COURSES FOLLOWING LOCATIONS IN PERSON AT THE Monday, March 14, 2022

AMERICA’S AA LOCATIONS – HARRISBURG FOLLOWING

1100 S. York St., Mechanicsburg, PA 17055 Monday, March 14, 2022 AMERICA’S – HARRISBURG Monday,AA April 25, 2022 1100 S. York St., Mechanicsburg, 17055 • Clint AA Weaver • 717.697.2222 ADESA -PAPITTSBURGH Monday, April 25, Stanton, 2022 PA 15672 378 Hunker Waltz Mill Rd., New SIGN UP FOR ADVANCED ADESA - PITTSBURGH AA Monday, May 16, 2022 378 Hunker WaltzAGENT Mill Rd., New Stanton, PA 15672 ISSUING TRAINING NORTHEAST PENNSYLVANIA Carly Bishop• 724.925.4700 AA Arcaro & Genell Restaurant, South Main St., Old Forge, PA 18518 Monday, May 16, 2022 COURSES IN443 PERSON AT THE NORTHEAST AA Monday,PENNSYLVANIA June 13, 2022 LOCATIONS Arcaro &FOLLOWING Genell Restaurant, 443PHILADELPHIA South Main St., Old MANHEIM AA Forge, PA 18518 Lisa Cohowicz • 570.650.2781 2280 Bethlehem Pike, Hatfield, PA 19440 Monday, June 13, 2022 Monday, September MANHEIM PHILADELPHIA19, AA 2022 GARDEN AAPA 19440 2280 Bethlehem Pike, SPOT Hatfield, Robert Rd. & Polina Apple St., Ephrata, PA 17522 Charles 215.822.1935 Monday, September 19, 2022 PIADA Members: $99 • Non-Members: $129 GARDEN SPOT AA Contact PIADA chapter today: Robert Rd. & Apple St., Ephrata, PA 17522 • Kristi Kohl • 717.738.7900

Email Cynthia@piada.org or call 717.238.9002.

PIADA Members: $99 • Non-Members: $129 Contact PIADA chapter today: COURSE REGISTRATION Email Cynthia@piada.org or call 717.238.9002.

Company ____________________________________________________ COURSE REGISTRATION Contact _____________________________________________________ Company ____________________________________________________ PIADA Member?  Yes  No DIN # _____________________________ Contact _____________________________________________________ E-mailMember?

Address  _______________________________________________ PIADA Yes  No DIN # _____________________________ Business Address ______________________________________________ E-mail Address _______________________________________________ City ______________________________ State_______Zip Code________ Business Address ______________________________________________ Phone (____) ___________________FaxState_______Zip (____) _____________________ City ______________________________ Code________ Phone (____) ___________________Fax (____) _____________________ Number Attending ______ Number Attending ______

NAMES OF ATTENDEES: NAMES OF ATTENDEES: ___________________________________________________________

___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Card Type:  VISA  MasterCard  Discover  American Express Card Type:  VISA  MasterCard  Discover  American Express Name on Card:_________________________________________________ Name on Card:_________________________________________________ Card # ________________________ Security Code ______ Exp. Date_____ Card # ________________________ Security Code ______ Exp. Date_____ Signature _____________________________________________________ Signature _____________________________________________________ Fax (We’d prefer fax) to 717.238.3870 Or Mail to: PIADA, 1501 North Front Street, Harrisburg, PA 17102 Fax (We’d prefer fax) to 717.238.3870 Or Mail to: PIADA, 1501 North Front Street, Harrisburg, PA 17102

SPECIAL THANKS TO OUR ANNUAL SPONSORS: SPECIAL THANKS TO OUR ANNUAL SPONSORS:

MidAtlantic IADA Membership Application

DO IT QUICK! Call 717.238.9002 and Say “I Want to Join!” & we’ll take the info over the phone (M-F 8:30-4:30) Dealership _________________________________________________ Owner/President(s)__________________________________________ DIN #_________________________________ or  Special Member  Corp.

 Partnership

 Sole Proprietorship

 LLC

Number of Employees _______________________________________ Street Address______________________________________________ City __________________________________ State_____ Zip _______ County__________________ Dealership Anniversary (mm/yy)______ E-mail _____________________________________________________ Website____________________________________________________ Ph. (____) ___________________ Fax (____) _____________________ To assist our lobbying effort, your party affiliation is requested.  Democrat  Republican  Independent  Decline to answer PIADA yearly dues are $399.00 and MDIADA & DIADA are $299.00 (which include $60 NIADA dues). You will receive all NIADA benefits including a discount prescription drug card, Used Car Dealer magazine, and dealer advocacy to officials in Washington, D.C. (Contributions or gifts to PIADA PAC are not deductible as charitable donations for Federal tax purposes; however, the $399 dues payments are deductible by members as an ordinary and necessary business expense.)

By my signature below, I affirm that: I support the PIADA Code of Ethics and want to strengthen the business and public image of the Independent Automobile Dealer; I request membership in the MARIADA, 1501 North Front Street, Harrisburg, PA 17102, 717.238.9002, Fax (717) 238-3870, www.piada.org, and I authorize PIADA to fax or e-mail important information to me.

Signature __________________________________________________ My check(s) in the amount of: (Membership Fees are  PA Dealer $399.00 non-refundable.)  MD/DE Dealer $299.00  Plus a voluntary PAC fund contribution to PIADA PAC of $25 or more. (Must be individual check, not a corporate check. Corporate checks for PAC fund contributions are not permitted by PA law.)  Plus a $20 donation to the MidAtlantic Regional IADA Scholarship Fund.

Or please charge this amount to my credit card: Card type:  Visa  MasterCard  American Express  Discover Name on Card ______________________________________________ Card Number ______________________________________________ Security Code ___________ Expiration Date ____________________ Signature __________________________________________________ Printed Name _______________________________________________ Date ______________________________________________________ Received by MARIADA Rep. _____________________________ Date ________________________________________________ OR Mail to: MARIADA, 1501 North Front St., Harrisburg, PA 17102. If using a credit card, you may fax this application to PIADA at 717.238.3870.

22 | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 20| MIDATLANTIC | JANUARYDEALER 2022 NEWS MIDATLANTIC DEALER NEWS

ONLINE AUTO DEALER SUPPLIES AND SELLING AIDS!

88 Auction Road � Manheim, PA 17545 � 1-800-366-2141 � www.dealergoodies.com MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 23

MARYLAND FORMS DEALERS CAN ORDER SECURE FORMS QUANTITY PRICE TOTAL $ DUE Secure Power of Attorney (3 part-50 per package) Secure Dealer Reassignment (1 part-100 per package)

$ 00* _____ 20. $ 00 _____ 20.

Total Secure forms order 6% Maryland Sales Tax Shipping TOTAL enclosed for Secure forms

Shipping Cost: 1 – 4 packs = $10.00 5 – 10 packs = $15.00 Over 10 packs – Please call ahead for pricing.

NON-SECURE FORMS

________ $ ________ $ ________ ________ ________ $ ________ $

QUANTITY $MEMBER NON-$MEMBER TOTAL $ DUE

Cash Sales Contracts (100 per pack) Odometer Mileage Statement (100 per pack) FTC Buyers Guide (100 per pack) Check one:  AS IS  IMPLIED Restricted Power of Attorney (100 per pack) Deal Jackets (100 per pack) Test Drive Agreements (100 per pack)

_____ _____ _____

47.00 18.00 $ 00 28. $

$

94.00 36.00 $ 00 56.

________ ________ $ ________

$

$

$

$

$ 00 $ _____ $10.00 20. ________ $ 00 $ 00 $ _____ 24.

48. ________ $ 00 $ _____ $28.00 56. ________ Total Non-Secure forms order $ ________ 6% Maryland Sales Tax ________ TOTAL enclosed for Non-Secure forms $ _________ TOTAL AMOUNT DUE $ _________

Dealership ________________________________________________________________________ Dealer # (required) _________________________________________________________________ Member  Yes  No Contact Name ___________________________________________ Email _____________________________________________________________________________ Address __________________________________________________________________________ (FEDEX & UPS WILL NOT DELIVER TO P.O. BOX)

City_______________________________________________State ______Zip _________ Phone ______________________________Fax ______________________________________ Card Type:

 VISA

 MasterCard

 AMEX

Name on Card ___________________________________________________ Exp. Date________ Card Number _____________________________________ Security Code________ Make checks payable to: PIADA or fill out payment information below: Card Type:

 VISA

 MasterCard

 AMEX

 Discover

Name on Card ___________________________________________________ Exp. Date________ Card Number _____________________________________ Security Code________ We cannot process orders until payment is received.

Signature ____________________________________________ Date ___________________ For questions you may contact Cynthia Slemons at 717.238.9002 ext. 16 or Cynthia@piada.org.

PENNSYLVANIA FORMS DEALERS CAN ORDER DESCRIPTION QUANTITY MEMBER NON-MEMBER MEMBER EXT NON-M EXT $

“As is” Supplemental Statement Buyers Guide Plastic Holders (50) Buyers Guide Window Form Buyers Guide Window Form (Spanish) Consignment & Sales Agreement Form Deal Jackets Fees Chart (wall mount) Fraud Hotline Poster Installment Sales Contract (100) Interpreter Confirmation of Translation Key Tags (250) Lease Agreements Limited Warranty No Purchase Required Disclosure Notary Receipt Pad Odometer Mileage Statement Power of Attorney Disclosure Forms Rental Agreements Retail Buyer Order Form Secure Power of Attorney Secure Power of Attorney Log Book Temp Tag Log Book Title Release Authorization Used Vehicle Record

$

_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____

24.00 $ 00 40. $ 00 20. $ 00 18. $ 00 25. $ 00 30. $ 00 14. $ 00 14. $ 150.00 $ 00 25. $ 00 32. $ 00 78. $ 00 26. $ 00 24. $ 00 15. $ 00 18. $ 00 18. $ 00 32. $ 00 32. $ 00 50. $ 00 15. $ 00 15. $ 00 15. $ 00 15.

_____ _____ _____ _____ _____ _____ _____ _____ _____

$

$

$

$

$

48.00 80.00 $ 00 40. $ 00 36. $ 00 50. $ 00 60. $ 00 28. $ 00 28. $ 300.00 $ 00 50. $ 00 64. $ 156.00 $ 00 52. $ 00 48. $ 00 30. $ 00 36. $ 00 36. $ 00 64. $ 00 64. $ 00 50. $ 00 30. $ 00 30. $ 00 30. $ 00 30.

_______ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______

_______ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______ $ _______

$

$

$

$

$

$

ADP FORMS Customer Delivery Check List Customer Proposal Damage Disclosure Delivery Confirmation Goodwill Repair Acknowledgement Insurance Coverage Acknowledgement Lease Spot Delivery Agreement Notice to Co-Signer Trade-In Appraisal

28.00 28.00 $ 00 28. $ 00 28. $ 00 28. $ 00 28. $ 00 28. $ 00 28. $ 00 28.

$ 56.00 _______ $ _______ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ 00 $ 56. _______ $ _______ $ Subtotal _______ $ _______ 6% Pennsylvania Sales Tax $ _______ $ _______ Shipping $ per pound + Special Shipping $ at cost. Total w/o shipping $_________ Please make checks payable to PIADA, 1501 North Front St., Harrisburg, PA 17102 (call in to receive shipping cost to include in payment) or you may fax orders to 717.238.3870 with credit card information. *All orders MUST be accompanied by a method of payment. *Must provide DIN if applicable.

Dealership ________________________________________________________________________ Contact_______________________________________________Date ________________

FOR INFORMATION ON MEMBERSHIP...

Address __________________________________________________________________________

MIDATLANTIC IADA = PIADA + MDIADA + DEIADA Contact Shannon at 717.238.9002 x 18 Shannon@piada.org www.piada.org • www.mdiada.org • www.deiada.org

City_______________________________________________State ______Zip _________

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Phone _____________________Fax ____________________*DIN ___________________ Card Type:

 VISA

 MasterCard

 AMEX

Name on Card ___________________________________________________ Exp. Date________ Card Number _____________________________________ Security Code________

24 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022

All forms come in packs of 100 unless otherwise noted.

CELEBRATE America Sales every Wednesday at 9am INOP AT 8:30

BARGAIN BOULEVARD AFTER FLEET/CONSIGNMENT UNITS

July 6th & 20th

July 6th & 20th

September 21st Prizes & Giveaways Contact Inside Sales To Reserve Numbers 717.569.5220 x406

Bid.Buy.Sell Online with EdgePipeline.com and AmericasAutoAuction.com

MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022 | 25

26 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • JULY 2022