Gramm Leach Bliley Act - FAQ
Frequently Asked Questions
People Who Finance or Lease Through
Our Dealership
A person buys a car and executes a retail installment contract, which we assign to a bank or finance
company. You must give this person a Privacy Notice no later than when
the credit applications are sent to the finance company.
A person leases a car and executes a lease contract, which we later assign to a bank or finance
company. You must give this person a Privacy Notice no later than when
the deal is signed.
A person buys a car on credit, and we hold the note until it is paid off.
You must give this person a Privacy Notice no later than when the deal is signed. Also, you must give
this person an Annual Privacy Notice, until the note is paid off.
A person leases a car from our in-house leasing operation, and we hold the lease until it
expires. You must give this person a Privacy Notice no later than when
the deal is signed. Also, you must give this person an Annual Privacy
Notice, until the lease terminates.
People Who Don't Buy or Lease a
Vehicle From Us
A person completes a credit application, which you send to a finance company, but does not buy or
lease a vehicle from us. You must give a Privacy Notice no later then when the credit application is sent to the finance
company. You must also give the Notice, and an opt-out opportunity, if you
will sell or give to a third party a list of people who applied for credit
with your dealership.
When do you give the Notice?
Generally, you will need to either mail the Notice, or give it when you take
the credit application. If you mail it, you must do so before you disclose
the information to any third party.
Cash Customers
A person buys a vehicle and pays with a cashier's check. He does not complete a credit application;
you do not pull his credit report. The person does not buy a service
contract. Your dealership has no obligation under the financial privacy
regulation for this transaction.
A person completes a credit application, which you send to a finance company, but does not buy or
lease a vehicle from us, but they do buy a service contract.
This one is tricky. Both the FTC and the State of Michigan have not yet
determined whether a service contract sale triggers the requirement to
provide a Privacy Notice. You should give this cash customer a Privacy
Notice to be sure you are covered.
There is another wrinkle. The FTC considers service contracts which are not manufacturer products to
be insurance. The states are responsible for issuing privacy regulations
for the sale of insurance products, but the State has not yet determined the
disclosure requirement.
A person buying a vehicle says she plans to pay cash. The F & I manager asks her if she would
like to find out what financing options she qualifies for. She says yes and
completes a credit application; the dealership pulls her credit report.
Despite the great finance deals, she pays cash after all.You must give a Privacy Notice. You must also give the Notice and an opt-out opportunity if
you will sell or give to a third party a list of people who applied for
credit with your dealership.
You would also be required to give this person a Privacy Notice if the vehicle manufacturer requires
you to state how the person financed the vehicle, or the fact that she paid
cash.
Service or Parts Department Customers
We have store credit accounts as a convenience to some parts and service customers. They charge;
we bill them. No third parties are involved. If the customer is buying
the parts or service for business purposes (e.g. a local garage, body shop,
or another dealership), you do not owe them a Privacy Notice. If the
customer is buying for personal or family purposes, you must give them a
Privacy Notice. Further, you should give a Privacy Notice to each of your
existing (personal or family) open account customers before July 1, and an
Annual Notice.
We accept major credit cards in our parts and service departments. You
do not owe a Privacy Notice to customers who merely use a credit card.