Important Consumer Protection Laws Became effective July, 2007

Apr 21, 2023 Prepared by GIADA 1

Important Consumer Important Consumer Protection LawsProtection Laws

Became effective July, 2007Became effective July, 2007


Your participation is Your participation is required to deal required to deal

with the problem. with the problem. We need your help! We need your help!


Our Goal Today is…Our Goal Today is…

Inform & educate you ABOUT Inform & educate you ABOUT CURBSTONING!CURBSTONING!

Explain new Ga. statute 40-2-39.1Explain new Ga. statute 40-2-39.1

Encourage you to help minimize the Encourage you to help minimize the problem of curbstoning in your problem of curbstoning in your communitycommunity


What is Curbstoning? What is Curbstoning? Who is involved?Who is involved?

Curbstoning involves a person or persons who Curbstoning involves a person or persons who

are regularly engaged in the business of buying are regularly engaged in the business of buying

and selling used automobiles for profit but and selling used automobiles for profit but

without a license, insurance, bond, sales tax without a license, insurance, bond, sales tax

number, Federal tax ID, proper local permits or number, Federal tax ID, proper local permits or

legally established place of business. legally established place of business.

Curbstoners operate “under the radarCurbstoners operate “under the radar.”.”


Some Curbstoners Some Curbstoners are Licensed Dealersare 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.


The DNA of a CurbstonerThe DNA of a Curbstoner Many times Curbstoners are scam artistsMany times Curbstoners are scam artists Individuals who ignore the laws meant to Individuals who ignore the laws meant to

protect consumers from unscrupulous protect consumers from unscrupulous sellers of vehicles sellers of vehicles

Won’t think twice about selling vehicles Won’t think twice about selling vehicles that they know are unreliable or have that they know are unreliable or have hidden mechanical defects.hidden mechanical defects.

Often will lie about history of a vehicleOften will lie about history of a vehicle Often will lie about mechanical conditionOften will lie about mechanical condition Don’t want a paper trailDon’t want a paper trail Think that they are doing nothing wrong or Think that they are doing nothing wrong or

think they won’t get caughtthink they won’t get caught


Curbstoning EnvironmentsCurbstoning Environments Gas stations Gas stations Auto repair Auto repair

businesses businesses Private property – Private property –

yardsyards Vacant propertyVacant property Shopping centersShopping centers Busy street cornersBusy street corners Grocery storesGrocery stores Department storesDepartment stores

Banks (closed) Banks (closed) Flea MarketsFlea Markets SubdivisionsSubdivisions RestaurantsRestaurants


Examples


The Unfortunate Facts, # 1.The Unfortunate Facts, # 1.

Consumers think that they will get Consumers think that they will get

a better price if they buy from an a better price if they buy from an

individual, and many think they individual, and many think they

can’t afford a vehicle from a can’t afford a vehicle from a

reputable, reliable dealer. reputable, reliable dealer.



Consumers feel less intimidated Consumers feel less intimidated

approaching an individual seller approaching an individual seller

they perceive to be a good they perceive to be a good

neighbor versus a professional neighbor versus a professional

salesman.salesman.



Many vehicles advertised in Many vehicles advertised in classified ads are those of classified ads are those of

Curbstoners.Curbstoners.



Victims of Curbstoners often end Victims of Curbstoners often end up making expensive repairs up making expensive repairs because a rolled back odometer led because a rolled back odometer led them to believe the vehicle was in them to believe the vehicle was in better shape.better shape.



Victims of Curbstoners many times Victims of Curbstoners many times find themselves in dangerous find themselves in dangerous vehicles that have been previously vehicles that have been previously totaled or have suffered major totaled or have suffered major structural damage resulting from an structural damage resulting from an severe accident or water damaged. severe accident or water damaged.


And to recap… And to recap… People buying vehicles from Curbstoners (or People buying vehicles from Curbstoners (or

individuals) have individuals) have ZERO RECOURSEZERO RECOURSE if something if something goes wrong such as…goes wrong such as…

• Odometer roll backOdometer roll back• Unsafe vehicle – not road worthyUnsafe vehicle – not road worthy• Serious mechanical problemsSerious mechanical problems• Airbag doesn’t workAirbag doesn’t work• StolenStolen• Title problemsTitle problems• Previous flood or salvage historyPrevious flood or salvage history• Vehicle won’t pass Emissions Vehicle won’t pass Emissions • Liens, or past due Ad Valorem taLiens, or past due Ad Valorem tax


Reasons for consumers to buy from Reasons for consumers to buy from licensed car dealerlicensed car dealer

Laws in place to protect consumersLaws in place to protect consumers $35,000 customer surety bond$35,000 customer surety bond Guaranteed title transfer within 30 daysGuaranteed title transfer within 30 days Federal odometer law complianceFederal odometer law compliance Used Car Board for consumer Used Car Board for consumer

complaintscomplaints Dealer’s public reputation at stakeDealer’s public reputation at stake


The other side…BuyersThe other side…Buyers

Drug dealers, money launderers and Drug dealers, money launderers and crooks prefer to buy cars from crooks prefer to buy cars from individuals. Why…?individuals. Why…?

Because they know that licensed auto Because they know that licensed auto dealers are required to verify customer dealers are required to verify customer identity, report cash transactions to identity, report cash transactions to the IRS and check the Homeland the IRS and check the Homeland Security list of suspected terrorists and Security list of suspected terrorists and known money launderers. known money launderers.


The Old Rules - § 43-47-8.1 The Old Rules - § 43-47-8.1

O.C.G.A. O.C.G.A. § 43-47-8.1. USED MOTOR 43-47-8.1. USED MOTOR VEHICLE DEALERS’ (AND PARTS VEHICLE DEALERS’ (AND PARTS DEALERS’) REGISTRATION ACT DEALERS’) REGISTRATION ACT

The problem…? NO TEETH! The problem…? NO TEETH!

Jurisdiction and enforcement were the Jurisdiction and enforcement were the responsibility of the Used Car Board responsibility of the Used Car Board Licensing Division. Licensing Division.

Simply did not have the proper resourcesSimply did not have the proper resources


The New Rules – §40-2-39.1The New Rules – §40-2-39.1

As a result of H.B. 144 that was signed by the As a result of H.B. 144 that was signed by the Governor in 2007.Governor in 2007.

Puts the heat on property owners (or business Puts the heat on property owners (or business lessee)lessee)

No more than 2 on display at same timeNo more than 2 on display at same time No more than 5 in a 12 month periodNo more than 5 in a 12 month period Some exclusions such as…Some exclusions such as…

EmployeeEmployee ShoppingShopping ParkingParking

And the best part… And the best part… The teeth!!!The teeth!!!


Not only teeth, but Not only teeth, but VERY SHARP TEETH!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.”


What do the Police care about?What do the Police care about?

Quality of LifeQuality of Life Public SafetyPublic Safety

Curbstoning threatens every Curbstoning threatens every aspect of these two ideals. aspect of these two ideals.

Think about it!Think about it!


Thank you!Thank you!

Together, we can make a Together, we can make a difference!difference!

How to enforce the Curbstoning How to enforce the Curbstoning LawLaw

A Recap of O.C.G.A. § 40-2-39.1A Recap of O.C.G.A. § 40-2-39.1::This applies to both owners and lessees of real property:This applies to both owners and lessees of real property:

No more than 5 used vehicles within a 12-month periodNo more than 5 used vehicles within a 12-month periodNo more than 2 at the same timeNo more than 2 at the same timeIf parked, must have prior permission of the property If parked, must have prior permission of the property owner/lesseeowner/lesseeAll vehicles parked must be lawfully titled and All vehicles parked must be lawfully titled and registered in the name of the person/entity offering the registered in the name of the person/entity offering the vehicle for salevehicle for sale

Apr 21, 2023Prepared by the Norcross Police

Department 24


O.C.G.A. § 40-2-39.1(d) Towing a O.C.G.A. § 40-2-39.1(d) Towing a VehicleVehicle::

A law enforcement officer may tow a vehicle parked A law enforcement officer may tow a vehicle parked

or displayed or displayed for longer than 24 consecutive for longer than 24 consecutive

hourshours on real property in violation of O.C.G.A. § 40- on real property in violation of O.C.G.A. § 40-

2-39.1.2-39.1.


Department 25


O.C.G.A. § 40-2-39.1(d) Towing a VehicleO.C.G.A. § 40-2-39.1(d) Towing a Vehicle::

If you tow a vehicle for curbstoning, If you tow a vehicle for curbstoning, please place a hold on the vehicle. The please place a hold on the vehicle. The owner will then have to come to the owner will then have to come to the police department with an ID and proof of police department with an ID and proof of ownership in order to get the vehicle ownership in order to get the vehicle released to him/her. At that time, you released to him/her. At that time, you may issue the owner a citation.may issue the owner a citation.


Department 26


Exceptions to O.C.G.A. § 40-2-39.1(a)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 (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 the owner or lessee of the real property on which the vehicle is displayed or parked;parked;

(2) If the owner or lessee of the vehicle displayed or parked is conducting (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 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; orparked 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 (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 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 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 vehicle is legitimately parked on the property for purposes other than displaying, selling, or advertising the sale of such vehicle.displaying, selling, or advertising the sale of such vehicle.


Department 27


Information that needs to be recorded in a log Information that needs to be recorded in a log book for field work and an Excel spreadsheet book for field work and an Excel spreadsheet for monthly totals:for monthly totals:Date, time, VIN, license plate (if available), year, make, Date, time, VIN, license plate (if available), year, make, model, color and phone number listedmodel, color and phone number listedIf possible, also take a digital photograph with a date/time If possible, also take a digital photograph with a date/time stamp.stamp.Maintain a separate log sheet for each property address. Maintain a separate log sheet for each property address. (To determine if that location has exceeded the 5 per year (To determine if that location has exceeded the 5 per year limit.)limit.)


Department 28


Two enforcement methods:Two enforcement methods:

1.1.The “penny test.”The “penny test.”

2.2.The orange stickers.The orange stickers.


Department 29

Questions?Questions?


Documents

Important Consumer Protection Laws Became effective July, 2007