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Jack Schmitt
Jack Schmitt Chevrolet

Vice Chairman
Dan Roesch
Roesch Auto Group

Pat Manning
Brad Manning Ford

Mike Ettleson
Ettleson Cad-Bu-GMC, Inc.

Peter Sander

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Ph# 1-800-252-8944

Pete Sander
Ext. 103

Larry Doll
Ext. 105

Mark Harting
Administrative Services
Ext. 110

Mike Healey
Member Services
Ext. 107

Joe McMahon
Ext. 113

Meghan Sander
Member Communications
Ext. 109


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September 21, 2017   Volume 2017, Issue 12

  Flood Titles - Hurricane Irma Joins Hurricane Harvey - Important Notice from Secretary of State  

In addition to Texas vehicles affected by Hurricane Harvey, the Secretary of State's Vehicle Services Department is screening title applications from vehicles that were registered in regions of Florida and Georgia that were declared disaster areas because of flooding and storm damage from Hurricane Irma. Title applications submitted between today and September 6, 2018 for vehicles registered in areas affected by Hurricane Harvey and submitted between now and September 10, 2018 for vehicles registered in parts of Florida and Georgia affected by Hurricane Irma will receive a flood title designation unless the title application is accompanied by a natural disaster disclosure statement signed by the previous owner declaring that the vehicle was not in a natural disaster area or was not damaged.

Beginning immediately, IADA recommends that you adopt the following approach: 

  • Check the National Insurance Crime Bureau's (NICB) database of known flood damaged vehicles. If a vehicle appears on the NICB list as a flood damaged vehicle, it will receive a flood branded title. The NICB database can be found here.
  • If the vehicle is not on the NCIB list, but was registered in Florida or Georgia, you will need to determine if the vehicle was located in an area that was declared a federal natural disaster because of Hurricane Irma. The list of zip codes affected by Hurricane Irma can be found here:   Please note that this list may be expanded as FEMA is still considering whether to add additional locations to the disaster declaration. We will update you if the list gets expanded.
  • If the vehicle is not on the NCIB list, but was registered in Texas, you will need to determine if the vehicle was located in an area that was declared a federal natural disaster because of Hurricane Harvey. The list of zip codes there were covered by the federal natural disaster declaration can be found here.
  •  If the vehicle was registered in a zip code that was declared a natural disaster area because of Hurricane Harvey or Hurricane Irma, then an Illinois title application must be accompanied by a natural disaster statement signed by the owner declaring that the vehicle was not located in a natural disaster area or was not damaged. The Secretary of State's Natural Disaster Disclosure Statement can be found here
  • Additional information from the Secretary of State's Office can be found here
A similar protocol for vehicles registered in regions of Florida, Georgia, North Carolina, or South Carolina that were declared disaster areas because of flooding and storm damage from Hurricane Matthew remains in effect through October 2, 2017. A list of affected counties for Hurricane Matthew can be found here

If you have any questions about this article, please contact IADA at (217) 753-0220 or ldoll@illinoisdealers.com. 





  FTC Revises Fuel Economy Advertising Guide  
  The Federal Trade Commission (FTC) has revised its Guide Concerning Fuel Economy Advertising for New Automobiles. The Guide, which takes effect on October 19, 2017, governs fuel economy advertising for new light-duty automobiles required to have fuel economy labels. The revised Guide reflects changes made in 2011 by EPA and NHTSA to their labelling mandates and guidance once provided in a separate FTC Alternate Fuel Labelling Guide that was withdrawn in 2013. The revised Guide states that it is deceptive to misrepresent, directly or by implication, the fuel economy or driving range of an automobile and makes suggestions as to how to advertise fuel economy information without being deceptive. 
NADA will soon issue an updated version of its Driven guide on fuel economy advertising. Until then, you can direct questions to NADA Regulatory Affairs at regulatoryaffairs@nada.org or 703.821.7040. 


  The Equifax Data Breach - What Dealers Should Know  
  Equifax is one of three nationwide credit-reporting agencies that track and rate the financial history of consumers.  Equifax recently announced a major breach of the data it stores and news coverage of the breach has been widespread.  Equifax has stated that information from as many as 143 million people in the United States were compromised.   Given the number of people affected and the sensitive type of information exposed, dealers should understand the basics of the breach and what it means for their customers.  In particular, dealership employees should recognize they are likely to: (a) get questions from customers about the breach, and (b) see a potential increase in "credit freezes" and fraud alerts on credit applicants' credit reports.   As a result, dealership personnel should review the FTC guidance below and understand what they may encounter, what they should look for, and what steps they should take when facing a fraud alert or "frozen" credit report.
If dealership personnel do get questions, it is important to first explain that the reported breach occurred at Equifax, and does not involve the dealership, data stored at the dealership, or dealership processes.  Dealership personnel can also point consumers to the FTC's consumer guidance "The Equifax Data Breach: What to Do?"  That guidance: (a) provides a link to the Equifax website where consumers can determine if their information is at risk and how to sign up for the free credit monitoring service provided by Equifax, and (b) provides information about steps consumers can take to protect their credit, including how to place a fraud alert, or a credit "freeze" on their account.
What if dealership personnel do see a fraud alert  or encounter a "frozen" credit report?   Dealership personnel should review the FTC document entitled Fraud alerts vs. credit freezes: FTC FAQs that provides further information about fraud alerts and credit freezes.  Basically, if a customer's credit is "frozen" then that customer's credit report generally cannot be viewed until the customer takes steps to "unfreeze" their credit.  They will be assigned a PIN they must use (and may forget), and it may include a fee that the customer must pay (both to place, and to temporarily "lift" the freeze), and could include a lead time that could affect a financing transaction.   If there is a fraud alert on the credit report, then the dealership must take certain additional steps to verify the identity of the applicant (generally calling a phone number that the consumer provided at the time they placed the fraud alert and speaking with the consumer) before the credit process can be finalized.
Dealers should also be aware that there are already scammers trying to take further advantage of the Equifax breach by calling consumers and trying to obtain personal information through false pretenses.  See the FTC warning here for more.
Lastly, this is a good reminder for dealers to revisit their Red Flags program to ensure that they are taking the required steps to detect and prevent scammers from opening a line of credit using someone else's information.


  IADA Leadership Attends NADA Washington Conference  
  More than 400 dealers from around the country, including IADA leadership, traveled to DC last week for the NADA Washington Conference, hearing a variety of speakers before going to Capitol Hill to call on Congress. IADA was well represented by Vice Chairman, Dan Roesch, Elmhurst; Treasurer, Pat Manning, DeKalb; NADA Director Jamie Auffenberg, Jr., O'Fallon; IADA President Pete Sander and IADA Director of Legislative Affairs, Joe McMahon.  Joining us from CATA was Ray Scarpelli Jr., Fox Lake, CATA Chairman; John Alfirevich, Tinley Park, CATA Director; Mark Scarpelli, Antioch, NADA Chairman and Dave Sloan, CATA President.

Our Illinois contingent met with U.S. Senator Tammie Duckworth, (D), Hoffman Estates; Congresswoman Cheri Bustos (D), E. Moline; Congressman Raja Krishnamoorthi (D), Schaumburg; Congressman Bill Lipinski  (D), Western Springs; Congressman Mike Quigley (D), Chicago; and we hosted a Reception for our Republican delegation including Congressman Rodney Davis (R), Taylorville; Congressman Randy Hultgren (R), Wheaton; Congressman Adam Kinzinger (R), Channahon; Congressman Darin LaHood (R), Dunlap and Congressman John Shimkus (R), Collinsville.  Future meetings were also scheduled with Congressman Bill Foster (D), Geneva and Congressman Mike Bost (R), Murphysboro.

Among the speakers were Rep. Don Beyer (D-Va.), former car dealer and congressman; Transportation Secretary Elaine Chao; Congressman Sean Duffy (R-WI) and Senator Lindsey Graham (R) South Carolina. 

NADA Chairman Mark Scarpelli told attendees "we're here to educate and explain," referencing the visits to Congress dealers would be making in conjunction with the conference. Scarpelli then presented the elements of NADA's Washington agenda as follows:

The ongoing challenge for dealers to promote fair consumer credit compliance while keeping credit rates competitive and affordable;  the necessity that rules on self-driving vehicles be subject to state franchise laws; the necessity that parts be available in vehicle recalls; and the necessity of local dealerships having the capacity and the expertise to implement recall repairs for consumers. 

The auto business is more complicated than ever, Scarpelli said. He highlighted cyber security, direct-to-consumer sales and the advent of automated driving as particular concerns. In their efforts on Capitol Hill that afternoon, Scarpelli urged dealers to explain to their members of Congress the invaluable service dealers provide auto consumers in keeping vehicle loans available and affordable.

With regards to tax reform, dealers were urged to focus on discussing the impact eliminating deductions for advertising and interest expenses would have, retaining the LIFO accounting method, and repealing the estate tax. 

U.S. Transportation Sec. Chao focused on the guidance for autonomous vehicles that the DOT released the previous week. This document replaces guidance issued last year under former President Obama. 

Consumer acceptance of fully autonomous vehicles lags behind what many of the technology's proponents would suggest, Chao said. 

"Consumers will determine when and how autonomous vehicles will arrive," she said. 

Congressman Duffy focused his remarks on the Consumer Financial Protection Bureau (CFPB). As a ranking Republican in the House, Duffy has been an outspoken critic of the CFPB and particularly of its director, Richard Cordray. The conference concluded with popular Fox News talk show host Tucker Carlson, who delighted dealers with an anecdote about his most recent car purchase and entertained the crowd with his discussion of President Trump.