Page 16 - GIADA-Oct 2017-Final

COMPLIANCE

How to Steer Clear of 7 Common

Compliance Potholes

Avoid the costly damage that hitting these compliance obstacles can cause

By Terry Dortch, President of Automotive Compliance Consultants, Inc.

If you drive in a big city where road The Police Book or software-based
construction is like a fifth season or where system must track new and used vehicles,
winters are brutal, you know the skill essential parts, rebuilt vehicles, and junked
required to navigate congested and furious vehicles. Their inspection is subject to law
traffic as you watch for—and dodge— enforcement and DMV investigators at any
road-surface potholes and hazards. time.

So next time you think you have smooth OFAC
driving ahead in terms of your dealership The Office of Foreign Asset Control
operations, pull over for three minutes 4 (OFAC) is a simple rule that requires
and review these common compliance the dealer to match the name of any
potholes dealers often miss while running purchaser, individual or corporate, against
their business. the Specially Designated Nationals (SDN)
list.
In no particular order, here are seven easy-
to-miss compliance potholes to watch for The SDN is a list of known people and
and avoid: organizations businesses are forbidden
to transact with. The people and groups
Spanish-language documents on this list are considered either money
Be sure you know what your state launderers, drug dealers, or terrorists.
1 requires. California, Texas, Nevada,
and a few others require customers to be OSHA 300 logs
provided a copy of the contract they sign take adverse action on consumer credit Under an Occupational Safety and
in the language in which it was negotiated. applications to provide a statement of 5 Health Administration (OSHA)
Other states, like Illinois, require a reasons for the adverse action. Adverse recordkeeping regulation, certain types
disclosure to be signed by the customer action notices need be sent to anyone of employers must prepare and maintain
when the agreement is negotiated in a applying for credit who is denied, or when records of serious occupational injuries
language other than English. the terms differ from what was requested. and illnesses using the OSHA 300 log.

As precaution, provide a Spanish copy of Usually the bank with which the dealership This information is important for
the contract where the deal is negotiated has pursued financing for the customer employers, workers, and OSHA in
primarily in Spanish. The Federal Trade will produce and distribute this notice. In evaluating the safety of a workplace,
Commission (FTC) requires the Used Car cases where the dealer makes the credit understanding industry dangers, and
Buyers Guide to be posted on the vehicle decision or denies credit without shopping implementing worker protections to
in Spanish before you negotiate a used car the application to a bank or finance reduce and eliminate hazards.
transaction in Spanish. company, the dealer must take the action.
As of January 2015, new and used car
The Spanish-speaking customer must also Police Book or Wash Out system dealers have had to maintain and keep
be provided a copy of the Spanish Buyers A hardbond Police Book or Wash Out OSHA 300 logs and post them. Should
Guide. 3 software system is required by state OSHA show up at your door, this log is
DMVs for dealers to note vehicle bought- likely the first document it will request—
Adverse action notices sold records. Recordkeeping requirements and your first opportunity to demonstrate
The Equal Credit Opportunity Act differ by state, so consult your association your commitment to regulatory
2 (ECOA) requires creditors who or DMV. compliance and employee safety.
Continued on page 16

14 | GIADA Independent Auto Dealer OCTOBER 2017