Page 8 - GIADA-Mar 2018-web

FEATURE

REAL ID has Arrived

By Gil Van Over, Executive Director, Automotive Compliance Education (ACE)

Air travel offers a great opportunity to spend So which states don’t comply? Well, the driver’s licenses: Applicants with a “Federal
a little time putting thoughts to words. The REAL ID Act is not a national identification Limits Apply” stamp are not eligible for CU
inspiration for this month’s plane-written law, which leaves state compliance as a membership. So watch out for those stips.
article was a sign in the airport security voluntary decision. As of today, most states
line, which read: “Effective Jan. 22, 2018, are either fully compliant or have been The second issue we encountered involved
each traveler must have a READ ID to pass granted an extension to the January 2018 an individual who renewed his driver’s
through security.” guideline. license. After going by a surname all his life
— he was born around the time President
The date is right and the REAL ID There are, however, five states still under Kennedy was assassinated — this individual
requirement for air travel is real. Evidently, review for an extension, leaving their produced his birth certificate to document
the implementation date for this obscure citizens at risk of the deadline: New York, his birthdate. It turned out his parents were
law that passed three presidential elections Michigan, Illinois, Missouri, and Louisiana. not married at the time of his birth, and
ago has snuck up on us like a copperhead Some of these states may issue “enhanced” the surname on his birth certificate didn’t
seeking a campfire. driver’s licenses, which are an acceptable match the surname on his current driver’s
option. license, military ID, DD 214 and Costco
"The first (and more common) card. So, to be compliant with the REAL ID
issue arises when the driver’s So what does it take to be compliant? Well, ACT, his new license has a new surname.
license or ID card has a designation the state issuing the driver’s license or ID Talk about a conundrum,
card must vet documentation the consumer
stating “Not Valid for Federal provides to prove the following: In this case, the dealer thoroughly
Identification.” At first blush, this documented the file to demonstrate the
certainly gives one pause about • A photo or non-photo ID that includes steps taken to comply with Red Flags,
whether it can be accepted as full legal name and birthdate including:
identification to sell and finance a • Documentation of birthdate
vehicle." • Documentation of legal status and • Short story in customer’s handwriting
Social Security number outlining the history of his surname
• Documentation showing name and and change
Congress passed the REAL ID Act in 2005 principal residential address • Successful answering of out-of-wallet
with the goal of establishing minimally questions
acceptable security standards for state- So far, two issues have surfaced because of • Retained copies of DD 214 and
issued driver’s licenses and identification the varying states complying with the REAL additional photo ID (not the military
cards. The law also prohibits federal ID Act that potentially affect dealerships ID)
agencies from accepting licenses and ID and, more specifically, their efforts to • Email discussion with the finance
cards for official purposes from those states comply with the Red Flags Rule. source before the credit decision
in which ID-vetting processes do not meet • The general manager’s approval to
these standards.
The first (and more common) issue arises deliver the vehicle
when the driver’s license or ID card has a
Two deadlines loom: On Jan. 28, 2018, designation stating “Not Valid for Federal Unfortunately, the experience has prompted
anyone traveling through a TSA security Identification.” At first blush, this certainly the dealer to contemplate yet another form
checkpoint cannot use a driver’s license or gives one pause about whether it can be to document these types of cases. Another
ID card issued by noncompliant states. A accepted as identification to sell and finance form usually seems to be an unintended
valid passport is still acceptable, however.
a vehicle. As we have learned, it is likely consequence of new laws and compliance
valid (unless it is an obvious forgery) as with those laws. Other than that, good luck
The second deadline is Oct. 1, 2020. On identification to prove compliance with Red and good selling! n
that day, anyone wanting to fly or enter a Flags, OFAC, your lender agreement, the
federal facility that requires identification USA Patriot Act and any other requirement Gil Van Over is the executive director of
must have a REAL ID-compliant driver’s to positively identify your customer. Automotive Compliance Education (ACE)
license, state ID or passport. So all those and the founder and president of gvo3 &
folks in Arizona with driver’s licenses that However, it is buyer beware on a deal-by- Associates. Email him at gvo@bobit.com.
expire on their 65th birthday will have to deal basis for dealerships. I recently saw
renew early to obtain a REAL ID-compliant a deal from a credit union with a stip for
driver’s license.
6 | GIADA Independent Auto Dealer MARCH 2018