TIADA Successfully Pushes Back Against Excessive Regulation
There is a fine line between effectively regulating an industry and overregulating an industry. In my mind effective regulation creates an even playing field for those licensed to do business in that industry and provides protection for consumers and citizens. If you ask ten people what that means though, you would probably get at least ten different answers. Getting that same group of people to agree on overregulation can be just as arduous. Now imagine half those people are in the industry being regulated and the other half are in the profession of regulating. To say we are all looking at things through different prisms would be an understatement.
As an association charged with looking out for and protecting the interest of independent automobile dealers this is a daily dilemma for us. We work closely with state agencies and policymakers trying to find that balance. We participate in stakeholder meetings and hold formal and informal conversations with DMV, OCCC, TDLR, TDI the state Comptroller and others along the way. This is all done in an effort to help mold and shape policies that make sense to the industry and the state.
In March the Office of Consumer Credit Commission proposed a rule that would require dealers with a motor vehicle seller finance license to retain a copy of the federally mandated privacy notice in a customer's file. TIADA objected arguing this was overregulation. The rules governing the notice are clearly spelled out by the FTC and the FTC does not require a financial institution to retain a copy in each file each time the same notice is given to a customer.
OCCC, looking to even the playing field and protect customers, pointed out that during their current motor vehicle examinations they review a licensee's compliance with the privacy notice requirements under the Gramm-Leach-Bliley Act. And, in the past year they found that privacy notice infractions were one of the five most common types of violations.
The association continued to argue that adding another piece of paper was not the answer and ultimately OCCC removed the proposed rule that would require and licensee to maintain the same privacy notice in every customer deal jacket. However, in closing the OCCC stated, “It is a best practice for licenses to be able to reproduce the privacy notice that they provide to consumers, in order to show that they are complying with the federal law.”
And with that we agree! It is a BEST practice and there are many more. Implementing best practices at your dealership is the way to take care of your customers, and your business. It is also the best way to minimize state and Federal regulations. If you would like more information on privacy notices read our blog, “Do I Have to Mail Privacy Notices” from earlier this March.