The importance of complying with the government should sound understood, right? But it’s not always understood, so let’s talk about required government forms for automotive businesses. The government-required forms we will talk about today are the truth in lending disclosures, the odometer disclosures, and credit disclosures. When I say the disclosures, I mean the box on a retail installment, sales contract, any credit forms, or credit turndown notices. We’re going to talk about credit turndown notices in a future video because a lot of people don’t do them and they’re required.
It’s important to know what the government forms are. If the dealer has management software, they’ll have the forms in them. Generally speaking, they’re available online as well. But what’s most important is that those forms are signed in the event of a government investigation, whether that’s the federal government or the Georgia secretary of state’s office. They are going to want to audit the dealer’s files, especially the customer files, and make sure that the proper forms are getting signed by the customer.
The importance of that is when the form gets signed by the customer, the customer acknowledges receipt of the form and understanding of the form. And that’s why it’s so important that they get signed. Simply having an unsigned form in the file doesn’t do anything. The critical part of that is that the form is actually signed by the customer. Those government-required forms are required for a reason. They may be a pain. It may add additional paperwork to a deal, but it’s required paperwork and it must get done.
For more videos on the Georgia Car Law Authority series, please visit www.georgiacarlaw.com.
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