2017 GNYADA Membership Directory

USED CAR RECALLS

Dealers trying to keep up with what needs to be done to sell a used car subject to an open recall face a confusing maze of different information from numerous agencies. The FTC, the State Attorney General, DMV, and the NYC Department of Consumer Affairs are a few groups that oversee dealer practices. The difficulty for dealers is that the guidance can be inconsistent but these agencies agree that disclosure is important. Dealers are advised to disclose any recall on a used vehicle and to have the customer sign an acknowledgement that they have been provided that information before delivery. Providing the customer with a report from NHTSA’s safercar.gov website, along with any information from your OEM, is the best way to meet the agencies’ requirements. If the customer accepts the vehicle at the agreed to price after disclosure, the customer should sign and date the acknowledgment. A copy of this acknowledgement should be given to the customer, and the dealership should retain a copy, in addition to the recall report.

HOT TOPICS

RECALL CALLS DO NOT VIOLATE “DO-NOT-CALL”

Dealers who call customers about recall-related issues are not violating national Do-Not-Call rules. The Do-Not-Call Registry was set up a little over a decade ago, so people could designate their phone number as off-limits for telemarketers and other solicitations. However, informing a customer that their vehicle is subject to a recall does not qualify as solicitation; rather, it is helpful notice to the customer that their vehicle needs servicing.

It should be noted that this exception only applies when the repair work is completed at no cost to the customer. Any attempts to sell additional parts or service during the conversation will designate it as a phone solicitation, which is prohibited. Cell phones, texting, autodialing and prerecorded calls are subject to a completely separate set of restrictions, under the Telephone Consumer Protection Act (TCPA). The cell phone stipulation admittedly makes the lines tricky to stay within, as a dealer may not be able to tell whether he/ she is calling a mobile phone or landline. However, if a customer provided you with their cell phone number, you can call to notify them of the recall, as long as you limit the conversation to that recall.

2017

MEMBERSHIP DIRECTORY 33