Also in this issue:
– Michael W. Dunagan: This Straw Man Will Never Have a Brain, Dorothy
– Recapping the 2024 TIADA Conference & Expo
– In a Market Marked by Uncertainty, Focus on Millennials
– The CARLAWYER: Federal Agencies Ramp Up Auto Industry Scrutiny
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Recon Alerts
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PRESIDENT
Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365
PRESIDENT ELECT
Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753
CHAIRMAN OF THE BOARD
Eddie Hale/Neighborhood Autos PO Box 1719 Decatur, TX 76234
SECRETARY
Russell Moore/Top Notch Used Cars
900 East Davis Conroe, TX 77301
TREASURER
Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237
VICE PRESIDENT, WEST TEXAS (REGION 1)
Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915
VICE PRESIDENT, FORT WORTH (REGION 2)
Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street Abilene, TX 79603
VICE PRESIDENT, DALLAS (REGION 3)
Chad Lancaster/Chacon Autos
11800 E. Northwest Hwy Dallas, TX 75218
VICE PRESIDENT, HOUSTON (REGION 4)
Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702
VICE PRESIDENT, CENTRAL TEXAS (REGION 5)
Adrian Sanchez/ADK Auto Sales LLC 8330 Burnet Rd. Austin, TX 78757
VICE PRESIDENT, SOUTH TEXAS (REGION 6)
Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415
VICE PRESIDENT AT LARGE
Christina Sabillón/Mi Tierra Auto Sales 7935 Gulf Freeway Houston, TX 77017
VICE PRESIDENT AT LARGE
Lucas Ponder/Auto Smart 3202 Summerhill Rd. Texarkana, TX 75503
TIADA EXECUTIVE DIRECTOR John Frullo
9951 Anderson Mill Rd., Suite 101 Austin, TX 78750
Office Hours M-F 8:30am –
Y ears ago, a good friend convinced me to join TIADA, and it remains one of the best decisions I’ve made for my nearly 35-year-old business. When I first joined, I was selling about fifteen units per month. Thanks to the support and knowledge I gained from TIADA and the great business leaders I’ve met, I now sell an average of 126 units per month. The benefits are too numerous to list them all, but here are a few of my favorites:
1
Advocacy and Representation: TIADA serves as a powerful advocate for its members. It represents collective interests when engaging with state governments, regulatory bodies, and other stakeholders. This advocacy can influence policies, regulations, and legislation that impact the industry, ensuring a favorable business environment.
2 Networking Opportunities: Membership provides ample networking opportunities with like-minded peers, industry leaders, and potential partners. Regular meetings, conferences, and events organized by the association facilitate connections that can lead to collaborations, business growth, and professional development.
3
Access to Resources and Information: Members find invaluable information every month in Texas Dealer magazine, the Off-the-Lot e-Newsletter, and the online Vendor Directory
by Greg Reine Auto Liquidators (Dallas)
TREASURER
4
Professional Development: TIADA offers training programs, workshops, and certifications to help members enhance their skills and stay
competitive in the industry. These opportunities contribute to individual career growth and improve overall industry standards.
5 Collaboration and Collective Impact: Through collaboration within the association, members can address common challenges, share knowledge, and innovate together. This collective approach fosters a supportive community where ideas can flourish, and industry-wide issues can be tackled more effectively.
6 Risk Mitigation and Compliance Assistance: TIADA provides guidance on regulatory compliance, risk management, and legal issues specific to the industry. This support helps members navigate complex regulations and reduce operational risks.
7 Community and Support: Beyond professional benefits, membership in an industry state association offers a sense of belonging to a community of like-minded individuals and organizations. This support network can be invaluable during turbulent times and fosters a spirit of camaraderie.
In conclusion, joining TIADA and making the most of your membership offers a multitude of advantages that drive professional growth, business success, and industry advancement. From advocacy and networking to access to resources and collaborative opportunities, membership is a strategic investment for anyone looking to thrive in our industry within a community of competitive camaraderie.
Please list me as a sustaining donor. I would like to support my industry by making a monthly credit card donation of $______________ Add me to the KEY-PERSON list!Iknow (Name of Legislator)
I would like to attend political fundraisers in my area I would like to support my industry by pledging a one-time donation of
Allen, Scott
Anonymous Donor Avila, Jennifer Barrett, Stephen Black, Austin Boisture, Karen Brown, Mark Browning, Justin Davis, Vicki
Edenfield, Robert Escajeda, Sergio Goodman, Jason Gregory, Tommy Hagler, Keith & Marcia Hale, Eddie Hanson, April
Please fill out the form on the facing page to help our efforts out at the Capitol!
Hobson, James Ingram, Blake Jackson, Rich Jones, Mark Kaya, Selcuk Lazo, Deyla & Felix
Litz, Brian McClees, Jason
Moore, Bobby & Monica Moore, Gerald (G.R.) Moore, Russell Morrissey, Corey Munoz, Jose Reine, Greg Rice, Jenissa Rodriguez, Edgar Rogers, Lowell
Sabillon, Christina Sanchez, Hugo Simmons, Tyler Smith, Jerry and DeDe Smith, Linda Stark, Cesar Stoll, Kevin Sumrall, Cal Terkel, Ken Toledo, Elkin Turan, Jon Wienecke, Christie & Duane Williams, Lanny Winkelmann, Ryan Zak, Gregory Zak, Michael
by Stephen Pallas TIADA Director of Marketing and Communications
AS
Vicki Davis, a veteran car dealer with a deep-rooted passion for the automotive industry, steps into her new role as the President of TIADA with a wealth of experience and enthusiasm. Her journey to this leadership position is a testament to her dedication and perseverance in a traditionally male-dominated field.
Davis recalls her early days in the industry, feeling hesitant to step forward and volunteer for leadership roles due to the overwhelming male presence. However, when Jeff Martin, long-time Executive Director for TIADA, extended an invitation, she embraced the opportunity with open arms. “Absolutely,” she responded, marking the beginning of her active involvement with TIADA. Reflecting on this pivotal moment, she notes, “I think the guys are just as nervous as we are,” underscoring the universal apprehension felt when stepping into uncharted territory. Her tenure on the TIADA board has been instrumental in her
“I AM TRULY HONORED TO BE THE PRESIDENT OF TIADA. THIS ASSOCIATION HAS GIVEN ME SO MUCH, AND I AM EAGER TO GIVE BACK. I LOOK FORWARD TO WORKING WITH OUR MEMBERS AND MAKING A POSITIVE IMPACT ON OUR INDUSTRY.”
professional growth. She emphasizes the value of collaboration, saying, “Iron sharpens iron. Whenever I’m with other car dealers, we exchange ideas and help each other improve our businesses.” This collaborative spirit has not only helped her grow as a dealer but has also fostered a sense of camaraderie and mutual support among TIADA members.
Davis’s top priority is to enhance membership engagement. She is determined to reach out to more dealers, highlighting the invaluable resources and support TIADA offers. “I can’t understand why every car dealer isn’t a member,” she remarks, underscoring the importance of staying informed about regulatory updates and industry changes. Davis is particularly passionate about compliance, a topic she feels is crucial for the success and sustainability of independent dealers. Reflecting on the recent TIADA conference, she found the compliance sessions particularly enlightening, despite the challenging content. Hudson Cook Partner Jean Noonan’s general session presentation “was an eye-opening speech,” Davis said. “I didn’t want to hear it, but I needed to,” she admits, demonstrating her commitment to continuous learning and adaptation.
transformations, such as the shift to virtual auctions during COVID-19, and seeks innovative ways to maintain and grow TIADA’s membership in this constantly changing environment.
“IRON SHARPENS IRON. WHENEVER I’M WITH OTHER CAR DEALERS, WE EXCHANGE IDEAS AND HELP EACH OTHER IMPROVE OUR BUSINESSES.”
Davis has also been positively influenced by several esteemed colleagues in the industry, including Scott Allen, Blake Ingram, Juan Sabillón, and Greg Zack. She admires their dedication, expertise, and willingness to share their knowledge. “Scott, Blake, Juan, and Greg have all been incredible mentors and friends. Their insights and support have been invaluable to my growth and success,” she acknowledges. Looking ahead, Davis aims to attend various town hall meetings and local chapter events to connect directly with dealers. She believes in the power of face-to-face interactions and wants to understand the unique challenges faced by dealers across Texas. Additionally, she acknowledges the impact of digital
Davis also highlights the importance of political involvement through INDEPAC, TIADA’s political action committee. She stresses the need for dealers to have allies in legislative processes, helping to shape policies that affect the industry. “It’s crucial to have office holders and staff that will listen to our positions and that we have established relationships with,” she states.
One of the key legislative challenges TIADA has confronted on several occasions is the “Crusher Bill,” which Davis recalls discussing with a legislator in vivid detail. “We explained the bill’s implications to her, and she responded with, ‘I had no idea. They could literally take my car and crush it, leaving me with no legal recourse.’ We confirmed, ‘That’s correct.’ Her immediate response was, ‘Well, we’re absolutely going to work on getting this changed,’” Davis shared. This story illustrates the direct influence TIADA’s advocacy can have on lawmakers and, ultimately, the legislation that impacts dealers.
Reflecting on recent legislative successes, Davis proudly mentions the increase in the DOC fee, a significant achievement for the association. “The DOC fee was raised to $225. We’ve been pushing for that for a long time. It’s probably been, what, eight years since they raised the DOC fee?” she recalls. This victory underscores TIADA’s persistent efforts to address the financial realities faced by independent dealers. Davis adds, “Inflation has gone up substantially. We’ve had to raise our employees’ wages, and everything has gone up, so it needs to go up with that.”
Davis is also focused on the ongoing fight against the Crusher Bill, a recurring issue that TIADA has successfully opposed multiple times and is one of the many issues TIADA is addressing in its
ongoing conversation with legislators and other stakeholders. “Unfortunately, it’s such a frustrating issue because I think we keep successfully killing the bill, and it keeps coming back up. I have a feeling it’s going to keep coming back up again, and we’re going to have to keep fighting that one off forever,” she says. This persistence in advocacy showcases TIADA’s unwavering commitment to protecting its members’ interests.
In addition to these legislative efforts, Davis is keen on addressing the day-to-day challenges that dealers face. She believes in the importance of staying adaptable and resilient in the face of industry shifts. “With all the digital transformations and the impact of COVID-19, we’ve seen how crucial it is to stay flexible and innovative. Virtual auctions have become more common, and we need to embrace these changes while also supporting our members through them,” she explains.
Davis’s vision for TIADA also includes strengthening the association’s educational offerings. She is an advocate for continuous professional development, recognizing that the industry is constantly evolving. “Education is key. We need to provide our members with the tools and knowledge they need to stay ahead of the curve. Whether it’s compliance, marketing, or technology, we want to be their go-to resource,” she states.
advice. Their support and guidance were invaluable. It’s this sense of community that makes TIADA special,” she shares.
As she embarks on her presidency, Davis is mindful of the legacy she is building. She aims to leave a lasting
she emphasizes.
Looking to the future, Davis is optimistic about the potential for growth and improvement within TIADA. She is determined to build on the association’s strong foundation and lead it into a new era of success. “There’s so much potential here. We have a dedicated team and passionate members. Together, we can achieve great things,” she says.
Davis also recognizes the importance of work-life balance, both for herself and for the members she serves. As a mother and a professional, she understands the challenges of juggling multiple responsibilities. “It’s important to find a balance that works for you. Family is important, and so is your career. Finding that balance is key to long-term success and happiness,” she advises.
“I REMEMBER DEALING WITH A DIFFICULT SITUATION AT MY DEALERSHIP, AND I REACHED OUT TO A COUPLE OF TIADA MEMBERS FOR ADVICE. THEIR SUPPORT AND GUIDANCE WERE INVALUABLE. IT’S THIS SENSE OF COMMUNITY THAT MAKES TIADA SPECIAL.”
impact on the association and its members. “It is a huge honor to be the President of TIADA. It is a great association, and I just hope I can do them proud,” she says. Her leadership style is characterized by humility and a genuine desire to serve her fellow dealers.
In her closing remarks, Davis expresses her gratitude for the opportunity to lead TIADA and her excitement for the future. “I am truly honored to be the President of TIADA. This association has given me so much, and I am eager to give back. I look forward to working with our members and making a positive impact on our industry,” she says.
Moreover, Davis values the personal connections she has made through TIADA. She recalls a particularly impactful moment when she received support from fellow dealers during a challenging time. “I remember dealing with a difficult situation at my dealership, and I reached out to a couple of TIADA members for
In her role, Davis is committed to fostering an inclusive and welcoming environment within TIADA. She believes that diversity and inclusion are essential for the association’s growth and success. “We need to make sure that everyone feels welcome and valued, regardless of their background or experience level. Diversity brings new perspectives and ideas, which are crucial for our industry’s innovation,”
With her passion, experience, and dedication, Vicki Davis is poised to lead TIADA with distinction. Her journey from a hesitant volunteer to the President of the association is a testament to her resilience and commitment. As she steps into this new role, she brings a fresh perspective and a steadfast determination to advocate for independent dealers across Texas. Under her leadership, TIADA is set to continue its mission of supporting and empowering its members, ensuring that they thrive in a rapidly changing industry.
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Abilene
ALLIANCE AUTO AUCTION ABILENE**
www.allianceautoauction.com
6657 US Highway 80 West, Abilene, TX 79605
325.698.4391
GM: Brandon Denison
Friday, 9:45 a.m.
$AVE : $200
IAA ABILENE*
www.iaai.com
7700 US 277, Hawley, TX 79601
325.675.0699
GM: Shaun Lemke
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee Amarillo
DAX of AMARILLO**
www.daxofamarillo.com
3208 SE 10th Ave., Amarillo, TX 79104
806.374.8982
GM: Kelsy Allen
Every Tuesday, 11:00 a.m.
$AVE : $200
IAA AMARILLO*
www.iaai.com
11150 S. FM 1541, Amarillo, TX 79118
806.622.1322
GM: Shawn Norris
Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Austin
ADESA AUSTIN**
www.adesa.com
2108 Ferguson Ln., Austin, TX 78754
512.873.4000
GM: Michele Arguijo
Tuesday, 9:30 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION AUSTIN**
www.allianceautoauction.com
1550 CR 107, Hutto, TX 78634
737.300.6300
GM: Brad Wilson
Thursday, 9:15 a.m.
$AVE : $200
AMERICA’S AA AUSTIN**
www.americasaa.com
16611 S. IH-35, Buda, TX 78610
512.268.6600
GM: Jamie McCollum
Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.
$AVE : $200
AMERICA’S AA LONE STAR AUSTIN
www.americasaa.com
8408 Shoal Creek Blvd., Austin, TX 78757
214.483.3597
GM: Sara Edgington
Friday and Every Other Thursday, 11:00 a.m.
$AVE : $200
IAA AUSTIN*
www.iaai.com
2191 Highway 21 West, Dale, TX 78616
512.385.3126
GM: Rick Hahn
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
METRO AUTO AUCTION AUSTIN
www.metroautoauction.com
2221 Hwy 21 W., Dale, TX 78616
512.282.7900
GM: Brent Rhodes
3rd Saturday monthly, 9:00 a.m.
$AVE : $200
Corpus Christi
AMERICA’S AUTO AUCTION
CORPUS CHRISTI**
www.americasaa.com
4501 US-77, Robstown, TX 78380
361.767.4100
GM: Hunter Dunn
Friday, 10:00 a.m.
$AVE : $200
IAA CORPUS CHRISTI*
www.iaai.com
4701 Agnes Street, Corpus Christi, TX 78405
361.881.9555
GM: Patricia Kohlstrand
Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
Dallas-Ft. Worth
ADESA DALLAS**
www.adesa.com
3501 Lancaster-Hutchins Rd., Hutchins, TX 75141
972.225.6000
GM: Eric Jenkins
Thursday, 9:30 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION DALLAS**
www.allianceautoauction.com
9426 Lakefield Blvd., Dallas, TX 75220
214.646.3136
GM: Anthony Herrera
Wednesday, 12:30 p.m.
$AVE : $200
AMERICA’S AA DALLAS**
www.americasaa.com
219 N. Loop 12, Irving, TX 75061
972.445.1044
GM: Ruben Figueroa
Tuesday, 12:00 p.m. / Thursday, 12:30 p.m.
$AVE : $200
DAX of ROCKWALL**
www.daxofrockwall.com
1810 E I-30, Rockwall, TX 75087
972.771.9919
GM: Tim Clement
Tuesday, 6:00 p.m. / Thursday, 2:00 p.m.
$AVE : $200
IAA DALLAS*
www.iaai.com
204 Mars Rd., Wilmer, TX 75172
972.525.6401
GM: Terrie Smith
Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA DFW*
www.iaai.com
4226 East Main St., Grand Prairie, TX 75050
972.522.5000
GM: Julissa Reyes
Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA FORT WORTH NORTH*
www.iaai.com
3748 McPherson Dr., Justin, TX 76247
940.648.5541
GM: Jack Panczyk
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM DALLAS** www.manheim.com
5333 W. Kiest Blvd., Dallas, TX 75236
214.330.1800
GM: Rich Curtis
Tuesday 9:30am / Wednesday, 9:00 a.m.
$AVE : $100
MANHEIM DALLAS FORT WORTH** www.manheim.com
12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000
GM: Glenna Bishop
Thursday, 9:30 a.m.
$AVE : $100
METRO AUTO AUCTION DALLAS** www.metroaa.com
1836 Midway Road, Lewisville, TX 75056
972.492.0900
GM: Scott Stalder
Tuesday, 9:30 a.m.
$AVE : $200
El Paso
AMERICA’S AUTO AUCTION EL PASO www.aaaelpaso.com
7930 Artcraft Rd., El Paso, TX 79932
915.587.6700
GM: Judith Ayub
Wednesday, 9:30 a.m. MST
$AVE : $200
IAA EL PASO* www.iaai.com
14651 Gateway Blvd. W, El Paso, TX 79927
915.852.2489
GM: Hector Escobar
Wednesday, 9:30 a.m. MST
$AVE : up to $200 Sell Fee
MANHEIM EL PASO**
www.manheim.com
485 Coates Drive, El Paso, TX 79932
915.833.9333
GM: JD Guerrero
Thursday, 10:00 a.m. MST
$AVE : $100
IAA M c ALLEN*
www.iaai.com
900 N. Hutto Road, Donna, TX 78537
956.464.8393
GM: Ydalia Sandoval
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
BIG VALLEY AUTO AUCTION**
www.bigvalleyaa.com
4315 N. Hutto Road, Donna, TX 78537
956.461.9000
GM: Lisa Franz
Thursday, 9:30 a.m.
$AVE : $200
Houston
ADESA HOUSTON**
www.adesa.com
4526 N. Sam Houston, Houston, TX 77086
281.580.1800
GM: Keyvan Nayeri
Wednesday, 9:30 a.m.
$AVE : $200
AMERICA’S AA HOUSTON**
www.americasaa.com
1826 Almeda Genoa Rd., Houston, TX 77047
281.819.3600
GM: Kyle Drake
Thursday, 2:00 p.m.
$AVE : $200
AMERICA’S AA NORTH HOUSTON**
www.americasaa.com
1440 FM 3083, Conroe, TX 77301
936.441.2882
GM: Buddy Cheney
Tuesday, 1:00 p.m.
$AVE : $200
AUTONATION AUTO AUCTION - HOUSTON**
www.autonationautoauction.com
608 W. Mitchell Road, Houston, TX 77037
855.905.2622
GM: Juan Gallo
Friday, 9:15 a.m.
$AVE : $200
EBLOCK**
www.houstonautoauction.com
2000 Cavalcade, Houston, TX 77009
713.644.5566
GM: Rich Levene
Tuesday, 12:00 p.m.
$AVE : $200
IAA HOUSTON*
www.iaai.com
2535 West. Mt. Houston, Houston, TX 77038
281.847.4700
GM: Alvin Banks
Wednesday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON NORTH*
www.iaai.com
16602 East Hardy Rd., Houston-North, TX 77032
281.443.1300
GM: Aracelia Palacios
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
IAA HOUSTON SOUTH*
www.iaai.com
2839 E. FM 1462, Rosharon, TX 77583
281.369.1010
GM: Roxy Castillo
Friday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM HOUSTON**
www.manheim.com
14450 West Road, Houston, TX 77041
281.890.4300
GM: Nick Hanson
Tuesday, 9:30 a.m.
$AVE : $100
MANHEIM TEXAS HOBBY**
www.manheim.com
8215 Kopman Road, Houston, TX 77061
713.649.8233
GM: Darren Slack
Thursday, 9:00 a.m.
$AVE : $100
ALLIANCE AUTO AUCTION LONGVIEW**
www.allianceautoauction.com
6000 SE Loop 281, Longview, TX 75602
903.212.2955
GM: Billy Fitzgerald
Friday, 9:30 a.m.
$AVE : $200
IAA LONGVIEW*
www.iaai.com
5577 Highway 80 East, Longview, TX 75605
903.553.9248
GM: Ulysses Else
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
AMERICAS AA LONE STAR LUBBOCK**
www.americasaa.com
2706 E. Slaton Road., Lubbock, TX 79404
806.745.6606
GM: Dale Martin
Wednesday, 9:00 a.m
$AVE : $75/Quarterly
IAA LUBBOCK*
www.iaai.com
5311 N. CR 2000, Lubbock, TX 79415
806.747.5458
GM: Chris Foster
Tuesday, 9:30 a.m.
$AVE : up to $200 Sell Fee Lufkin
LUFKIN DEALERS AUTO AUCTION
www.lufkindealers.com
2109 N. John Reddit Dr., Lufkin, TX 75904
936.632.4299
GM: Wayne Cook
Thursday, 5:30 p.m.
$AVE : $200
IAA PERMIAN BASIN*
www.iaai.com
701 W. 81st Street, Odessa, TX 79764
432.550.7277
GM: Sheila Gray
Thursday, 9:30 a.m.
$AVE : up to $200 Sell Fee
AMERICA’S AUTO AUCTION
SAN ANTONIO**
www.sanantonioautoauction.com
13510 Toepperwein Rd., San Antonio, TX 78233
210.298.5477
GM: Brandon Walston
Tuesday, 9:00 a.m
$AVE : $200
ADESA SAN ANTONIO**
www.adesa.com
200 S. Callaghan Rd., San Antonio, TX 78227
210.434.4999
GM: Clifton Sprenger
Thursday, 9:00 a.m.
$AVE : $200
IAA SAN ANTONIO*
www.iaai.com
11275 S. Zarzamora, San Antonio, TX 78224
210.628.6770
GM: Paula Booker
Monday, 9:30 a.m.
$AVE : up to $200 Sell Fee
MANHEIM SAN ANTONIO**
www.manheim.com
2042 Ackerman Road, San Antonio, TX 78219
210.661.4200
GM: Mike Browning Wednesday, 9:00 a.m.
$AVE : $100
GREATER TYLER AUTO AUCTION**
www.greatertyleraa.com
11654 Hwy 64W, Tyler, TX 75704
903.597.2800
GM: Daylon Waynick Thursday, 2:30 p.m.
$AVE : $200
VICTORIA AUTO AUCTION**
835 Industrial Park Drive, Victoria, TX 77905
361.576.0058
GM: Shelly Griffin Thursday, 11:30 a.m.
$AVE : $200
ALLIANCE AUTO AUCTION WACO** www.allianceautoauction.com
15735 I-35 Frontage Road, Elm Mott, TX 76640
254.829.0123
GM: Christina Thomas Friday, 9:45 a.m.
$AVE : $100
DAX of WICHITA FALLS**
www.daxofwichitafalls.com
2206 Sheppard Access Rd., Wichita Falls, TX 76306
940.720.0435
GM: Lisa Shelton
Every Other Wednesday, 5:00 p.m.
$AVE : $200
Business Name:
Select one: q Dealer Member q Associate Member
(if different from above):
by TIADA staff
Board Members in Attendance: Lowell Rogers, Russell Moore, Greg Reine, Vicki Davis, Eddie Hale, Ryan Winkelmann, Chad Lancaster, Cesar Stark, Tyler Simmons, Greg Phea, and Cesar Torres
TIADA Staff in Attendance: John Frullo, Earl Cooke, and Stephen Pallas
Also in Attendance: Lee Helstrom
At its meeting on Sunday, July 21, 2024, TIADA took the following actions:
President Eddie Hale called the meeting to order at 12:25 p.m.
Secretary Greg Phea presented the minutes from the last meeting.
A motion was made to accept the minutes.
Moved by Cesar Stark, second by Tyler Simmons – PASSED
Executive Director John Frullo presented the Treasurer’s Report.
A motion was made to accept the Treasurer’s report.
Moved by Vicki Davis, second by Cesar Torres – PASSED
Eddie Hale discussed his time as President and thanked those who served with him.
Executive Director John Frullo reported on various meetings and conferences he and his staff attended, town halls and other association events, provided information on the conference and expo for next year and registration information for this year, provided a legislative update.
John Frullo presented FY’24 and FY’25 budget.
A motion was made to approve the FY’25 budget.
Moved by Lowell Rogers, second by Cesar Torres – PASSED
Director of Compliance and Business Development Earl Cooke provided a regulatory affairs update.
A motion was made to adjourn the meeting.
Moved by Vicki Davis, second by Cesar Stark – PASSED Eddie Hale adjourned the meeting at 2:01 p.m.
Respectfully submitted, Greg Phea, Secretary
A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.
In a newspaper article about the indictment of several persons for mortgage fraud several years ago, the term “straw purchaser” was used to describe the scheme allegedly employed by the accused. While the facts set forth in the indictment were quite complicated, suffice it to say that an individual with good credit was listed as the buyer in the mortgage papers, but apparently never intended to live in the purchased property (or to pay for it), and signed the application papers in exchange for a fee. After the purchasers defaulted, the holder of the mortgage foreclosed on property that was worth substantially less than the loan amount. The inflated purchase price, it was alleged, was split between the seller and those accused of perpetrating the fraud.
Other references to straw purchases occasionally appear in the media when someone who is legally eligible under federal requirements purchases a firearm for someone who is not eligible.
According to traditional belief, the term “straw man” originated in the British Isles, where, in former times, men who were willing to commit perjury for a fee would loiter around courts of law with a conspicuous piece of straw worn in the cap or hair. By exhibiting this sign, they advertised their availability for employment as false witnesses in court. They thus came to be known as “straw men.”
The term “straw purchaser” is now used to describe a situation in which one of the named
by Michael W. Dunagan
TIADA COUNSEL
Straw purchasers are often used in car purchases because the party that intends to use the vehicle doesn’t have a driver’s license, has a revoked driver’s license, or for some other reason, has been restrained by law from driving and/or car ownership.
participants is not the real party in interest to a transaction. In the world of motor vehicle selling and financing, straw purchasers are commonly used — some with and some without — the knowledge of the seller.
In the typical scenario, a person with very bad credit would enlist a friend or relative with a better credit rating (the straw purchaser) to fill out the credit application and sign the contract. Once the deal is done, and the vehicle delivered, the real user takes possession.
In the buy-here-pay-here world, a car dealer would usually have little interest in intentionally doing business with a straw purchaser. However, a commissioned salesperson, or someone intending to immediately sell a contract to a third party, might be interested in putting a deal together for the benefit of someone the salesperson knows is not credit-worthy. In such a case,
there may be a temptation to have a relative or friend of the buyer — who has better credit — make application in place of the real buyer. And, there’s always the possibility of outright fraud on the part of the purchaser.
The real danger to the holder of the straw-purchaser paper is that the person using the vehicle hasn’t signed anything and isn’t identified on the paperwork. The signer, on the other hand, probably doesn’t feel any obligation to see that payments are made.
In the case of special finance transactions, the risk is that the dealer will end up holding a worthless contract. Most finance companies require dealers to sign agreements that include representation and warranties. One of the standard representations is that the purchaser is the actual person who will be using the vehicle. Should it turn out that there is a straw
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purchaser involved, the finance company can invoke its repurchase right under the master agreement.
Even if the use of a straw purchaser is not intended to commit credit fraud, there is another reason that car creditors should be vigilant. Straw purchasers are often used in car purchases because the party that intends to use the vehicle doesn’t have a driver’s license, has a revoked driver’s license, or for some other reason, has been restrained by law from driving and/or car ownership.
The implications of this situation to a car creditor are obvious. The person driving the vehicle is possibly not a safe driver, and equally important, is likely uninsurable.
Most insurance companies go beyond simply checking the driving record of the named vehicle owner. They usually check databases that list all the persons living at the address given by the applicant. It’s possible the insurer, upon finding out about the deception, would cancel the policy, claiming fraud. Even if the policy isn’t cancelled, a subsequent claim for damages could be denied on the basis of fraud at the time of application.
Given the potential downsides that can result from straw-purchase transactions, it is important to understand that a straw purchase is definitely not in a car creditor’s best interests. Since modern-day straw purchasers don’t go around with straw sticking out of their caps, it will take more vigilance to spot them. But the time and effort expended in detecting and preventing straw-purchaser sales is well spent.
Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.
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NIADA Foundation is a 501(c)3 nonprofit. It collects funds throughout the year to assist our members in times of need. To apply for disaster relief, please submit your completed application to TIADA. For contact details, visit https://www.txiada.org/. Executive Director John Frullo will submit your application to the NIADA Foundation and keep you updated on its status.
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NIADA Foundation is a 501(c)3 nonprofit. It collects funds throughout the year to assist our members in times of need. To apply for natural disaster relief, being a member of NIADA and this application are required. Once completed, send the competed application to your State Independent Automobile Dealers Association (IADA). To find your state association contact information, visit our website. Your state Executive Director will forward the application to NIADA Foundation on your behalf and will communicate the status. If your state isn’t listed, please forward your application to info@niada.com
NIADA Foundation is a 501(c)3 nonprofit. It collects funds throughout the year to assist our members in times of need. To apply for natural disaster relief, being a member of NIADA and this application are required. Once completed, send the competed application to your State Independent Automobile Dealers Association (IADA). To find your state association contact information, visit our website. Your state Executive Director will forward the application to NIADA Foundation on your behalf and will communicate the status. If your state isn’t listed, please forward your application to info@niada.com.
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by TIADA Staff
The 2024 TIADA Conference & Expo was a resounding success, marked by a record number of first-time dealers. We welcomed over 300 dealers for the fourth year in a row, a testament to the growing enthusiasm and commitment within our community. Our sincere gratitude extends to all who joined us, making this event a milestone in TIADA’s history.
Our heartfelt thanks also go to our incredible sponsors. Your unwavering support and contributions were instrumental in creating an exciting and dynamic Expo Hall. The Expo Hall buzzed with activity, showcasing innovative products and services that are essential for the success of independent automobile dealers.
On July 21, dealers and sponsors arrived in the vibrant city of San Antonio, eager to partake in the highly anticipated event. The JW Marriott San Antonio Hill Country Resort & Spa provided exceptional accommodations, setting the stage for a memorable conference. Attendees were greeted with an amazing welcome reception, where old friends reunited and new connections were forged. The resort’s luxurious amenities and picturesque surroundings offered the perfect backdrop for the evening, allowing everyone to unwind and prepare for the days ahead.
Day 2 commenced with the Opening General Session, featuring Jean Noonan, a partner at Hudson Cook. Her comprehensive presentation on the FTC CARS Rule was both informative and timely, addressing critical regulatory issues that impact our industry. Jean’s expertise and engaging delivery left attendees with valuable insights to navigate the complex compliance landscape. Representative Barbara Gervin-Hawkins also delivered remarks to members, underscoring the importance of legislative collaboration and industry engagement to ensure continued success for dealers across the state.
Following the Opening General Session, the dealerdriven roundtable discussions provided an opportunity for candid conversations and knowledge sharing. These
sessions fostered a collaborative environment where dealers could discuss common challenges and brainstorm solutions. The exchange of ideas was invigorating, highlighting the collective wisdom within our community.
The Afternoon General Session brought another highlight: Jonathan Smoke, Chief Economist at Cox Automotive, presented an economic outlook for the US and Texas. His analysis of market trends and forecasts offered a comprehensive understanding of the economic landscape, empowering dealers to make informed business decisions. Jonathan’s presentation was both thought-provoking and actionable, providing a strategic roadmap for the future. Additionally, Commissioner Leslie Pettijohn of the OCCC addressed members, announcing the increase of the documentary fee to $225, an important update for dealers across the state.
The day concluded with the opening of the Expo Hall. The energy was palpable as dealers explored the exhibits, discovering the latest innovations and networking with industry leaders. The first day in the Expo Hall set the tone for an engaging and productive experience.
Day 3 was dedicated to highquality education, featuring 15 individual breakout sessions on a variety of topics central to the success of
independent dealers. These sessions, led by industry experts, covered a range of subjects from digital marketing strategies to compliance best practices. Attendees appreciated the depth and breadth of the content, gaining practical knowledge to enhance their operations.
The excitement continued in the Expo Hall, where dealers had another chance to engage with exhibitors and learn about cutting-edge products and services. The day was filled with excellent prizes and giveaways, adding an element of fun and anticipation to the experience. The Expo Hall once again proved to be a hub of innovation and opportunity.
The Closing General Session featured senior leadership from the Texas Department of Motor Vehicles (TxDMV). Their insights into regulatory updates and future initiatives were invaluable, providing clarity
and direction for dealers navigating the evolving regulatory landscape. The session underscored the importance of staying informed and proactive in compliance efforts.
The conference culminated in the Awards Banquet, a night filled with celebration and camaraderie. Attendees enjoyed a delightful dinner, and the evening was punctuated with fun moments and heartening recognition of outstanding achievements within our community. The awards honored individuals and organizations that have made significant contributions to the industry, highlighting the dedication and excellence that define TIADA.
The Independent Award, presented to an individual outside of our industry who has supported the independent automobile dealership industry, was awarded to Texas State Representative Ryan Guillen. In his presentation speech, TIADA Executive Director John Frullo remarked, “Representative Guillen, you have been a steadfast ally, always giving us a fair shake and ensuring our issues are understood and addressed. Your reliability and fairness are qualities we deeply appreciate and can always depend on.”
Mario Martinez
The Presidential Award was given posthumously to Mario Martinez, TIADA’s legislative liaison from 2012 to 2023. His wife, Louann Martinez, accepted the award on his behalf. Jeff Martin, former TIADA Executive Director and current NIADA CEO, delivered a moving speech, saying, “Mario always focused on building the relationship between the legislator and the dealer or constituent. He understood leadership was about empowering others and was passionate about making everything a team effort. He would always say, ‘we have to wave the flag, no one person can be bigger than the association.’”
Rick Maroney
Rick Maroney of Maroney Auto Sales in Houston was honored with the Quality Dealer Award. In his presentation speech, Juan Sabillon highlighted Rick’s dedication and impact, stating, “Rick’s journey in the world of auto sales began in May 1975 at Lone Star Ford, where he completed their salesman training classes. He quickly made his mark... Rick attributes his success to a loyal, stable staff and a business philosophy of treating customers like family, working hard, and respecting everyone.”
As we reflect on the success of the 2024 TIADA Conference & Expo, we are filled with gratitude and inspiration. The record attendance and enthusiastic participation underscore the strength and resilience of our community. The insights gained, connections made, and knowledge shared will undoubtedly propel us forward in our collective mission to support and empower independent automobile dealers.
We extend our deepest appreciation to everyone who attended,
sponsored, and contributed to the success of this event. Your dedication and support are the driving forces behind TIADA’s continued growth and impact. We look forward to building on this momentum and welcoming you to future conferences and events, where we will continue to learn, grow, and thrive together.
In closing, the 2024 TIADA Conference & Expo was not just an event; it was a celebration of our shared commitment to excellence and a brighter future for independent automobile dealers. Thank you for being a part of this remarkable journey. We eagerly anticipate what the future holds and are excited to continue this journey with you.
Check the committee(s) you wish to join. All Dealer Members are welcome to participate. We need your input! Please complete form and return to info@txiada.org or fax to 512.244.6218.
Check the committee(s) you wish to join. All Dealer Members are welcome to participate. We need your input! Please complete form and return to info@txiada.org or fax to 512.244.6218.
Committee members will be appointed at the October 2023 board meeting
Committee members will be appointed at the October 2023 board meeting
Standing Committees:
Standing Committees:
Awards Committee
Awards Committee
Budget and Finance Committee
Budget and Finance Committee
Legislative Committee
Legislative Committee
Political Action Committee (INDEPAC)
Political Action Committee (INDEPAC)
Bylaws Committee
Bylaws Committee
Ad hoc Committees:
Ad hoc Committees:
Ad hoc committees will be appointed by the president to focus on specific issues and given a specific timeframe. Issues may include but are not limited to: education, conference, compliance, member services, membership recruitment, website, magazine and surveys. Committee members will be notified prior to a committee being appointed to determine interest.
Ad hoc committees will be appointed by the president to focus on specific issues and given a specific timeframe. Issues may include but are not limited to: education, conference, compliance, member services, membership recruitment, website, magazine and surveys. Committee members will be notified prior to a committee being appointed to determine interest.
by Jonathan Smoke Chief Economist at Cox Automotive
As we look back on the first half of 2024, one key theme overshadows everything else: Uncertainty.
Global geopolitics — with unrest in the Middle East and continued trouble in Ukraine — has been on the risk radar for several years, unfortunately. Plus, now we have the U.S. election coming into focus, with a wide range of unknowns in the road ahead. Of late, the stock market has seen large swings, as all eyes are on the Federal Reserve Bank, waiting for signs of interest rate cuts that need to come soon. That’s a lot of uncertainty, which adds to the hesitancy in consumers buying big-ticket items like automobiles.
On the upside, despite unrest and uncertainty, the U.S. economy has been growing more than expected. We did not tumble into a recession in 2023, thanks mostly to a resilient consumer empowered by a strong labor market. This year hasn’t been as strong as last, but spending has not collapsed despite some negative months. A softening job market may complicate matters, as conditions in early August are worse than before the pandemic and continue to deteriorate.
Looking specifically at the used-vehicle market across the U.S., it is fair to say that sales have failed to reach full market potential, which would be at least 21 million in retail volume. Affordability — driven largely by high loan rates and a consumer struggling with high levels of prices and high credit card interest rates — is the key issue. Independent dealers tell us the used-vehicle market
Millennials were born between 1981 and 1996. They are not youngsters anymore — the oldest Millennials are in their early 40s.
is weak and worse than 2019. The sentiment has been trending slightly better lately, but that mild upward trend is probably a result of an atleast-it’s-not-getting-worse mindset.
Independent auto dealers identify the two enemies of better business as the economy and interest rates. Looking at the economy, growth is slowing and is expected to slow further through next year, but a recession is unlikely. The consumer is 70% of the US economy, and while spending growth is weak, it is not collapsing. Yes, the labor market has been deteriorating, with claims increasing and lasting longer. The unemployment rate has moved higher
to 4.3%, and there is the risk of more cooling in job creation, so we could see unemployment continuing to tick higher.
Fortunately, inflation in the U.S. is clearly moderating, and consumers have enjoyed real wage growth for more than a year. As long as labor markets don’t cool much more, the American consumer will likely remain financially healthy and feel better about the future, particularly as some uncertainty fades away as the Fed moves to cut rates and the country moves past the current election cycle.
However, inflation impacts lowerincome consumers more, and the
lowest-income segment is still seeing 10% inflation rates year over year. Increasingly, more consumers are relying on credit cards to keep spending up. Record high interest rates on credit cards lead to accruing interest, which eats into household spending power and ultimately creates even further stress. It will take time for demand to strengthen after the Fed starts cutting.
A big worry in the market right now is that auto loan performance is not good. Severe delinquency rates have been near record-high levels for more than a year. Defaults, which were historically low only two years ago, have normalized and are now higher than 2019 and are close to
2010 levels. Shaky loan performance keeps lenders in a risk-averse posture, so credit remains tight, which is a drag on the automotive business.
We expect the Fed to begin cutting rates in September, and the consumer’s financial situation will start improving thanks to lower credit card rates. Unfortunately, auto loan rates may not move as quickly. The auto-rate peak has probably already happened, but materially lower auto loan rates may not begin to materialize until next year.
But the good news is our longterm forecast sees multiple years of growth ahead. And, as the saying goes, everything is bigger and better in Texas.
The Texas market has a lot going for it right now. In terms of consumer demand, Texas is in the driver’s seat thanks in part to positive longterm trends for both population and job growth. While a few states like Nevada and Idaho offer even more growth potential, none of them have the size of Texas. And the population and job growth are positive for most markets in Texas — this is not just a Houston-Dallas-Austin story.
Texas is the number one state for used-vehicle sales aged 6-to10 years — more than 3.5 million have been sold in Texas since 2021. Better still, it is not a crowded market. Using establishment data from the government, which should be an accurate count of used dealers with employees, only New York is less crowded. Feel free to move to NY for greener pastures.
In Texas, Millennials are driving the used car market. And that’s your tip on how to thrive: Focus on Millennial buyers. This group — which is over-represented in Texas — is the next big thing in automotive.
Millennials were born between 1981 and 1996. They are not youngsters anymore — the oldest Millennials are in their early 40s. They have recently surpassed Baby Boomers as the largest cohort out there, and the Millennial generation is in prime family mode and becoming more influential and wealthy.
Conditions are such that the industry outlook should be better in Texas with stronger economic growth, stronger consumer spending, similar unemployment conditions but better job growth. Texas is experiencing higher wage growth, higher population growth, lower housing costs, and stronger vehicle demand. The only negative is that all this growth is producing higher inflation, but that’s all the more reason why Millennials are likely shopping for 6-to-10-year-old used vehicles. And that’s good news for independent auto dealers in Texas.
TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.
In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.
$ 98 for two 1-hour videos
Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.
$ 48 for the course * Also available in Spanish
by Eric L. Johnson Partner at Hudson Cook, LLP
Here’s our monthly article on selected legal developments we think might interest the auto sales, finance, and leasing world. This month, the developments involve the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission, Federal Communications Commission, Federal Deposit Insurance Corporation, Federal Reserve Board, the Office of the Comptroller of the Currency and U.S. Department of Justice (DOJ). As usual, our article features the “Case(s) of the Month” and our “Compliance Tip.” Note that this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you or if you have questions.
On June 26, the Consumer Financial Protection Bureau issued its annual fair lending report describing the agency’s fair lending activities in enforcement and supervision,
guidance and rulemaking, interagency coordination, and outreach and education for calendar year 2023.
CFPB’s Recent Supervisory Highlights Focuses on Collections and Vehicle Financing Contracts
On July 2, the Consumer Financial Protection Bureau published its Summer 2024 edition of Supervisory Highlights, which, among other topics, focuses on the collection of consumer debt and the servicing of vehicle financing contracts. The current edition shares key findings from recent examinations completed by the CFPB from April 1, 2023 through December 31, 2023. Recent CFPB examinations of debt collectors identified violations of the Fair Debt Collection Practices Act and its implementing Regulation F. Some of the CFPB’s findings concerning debt collection included: (1) failing to provide debt validation notices to consumers; (2) using false,
deceptive, or misleading representations in connection with the collection of a debt by: (a) using a business, company, or organization name other than the true name of the debt collector’s business, company, or organization, and (b) failing to disclose in initial communications with consumers that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose; (3) communicating with consumers at inconvenient or unusual times or places, such as communicating with a consumer before 8 a.m. in the consumer’s time zone and continuing a conversation with a consumer after the consumer informed the debt collector that it was an inconvenient time to talk to discuss the debt in question; (4) harassing, oppressive, or abusive conduct in connection with the collection of a debt, such as using verbally abusive language in a phone call with a consumer and placing over 100 phone calls to a consumer after being asked to stop collection communications; (5) failing to cease communicating with a consumer through a specific medium after the consumer requested that the debt collector not use that medium to communicate; and (6) failing to disclose, in each communication after the initial communication with a consumer, that the communication is from a debt collector. Recent CFPB examinations of auto finance servicers identified unfair acts or practices in violation of the Consumer Financial Protection Act related to collecting a consumer’s final payment under a vehicle financing contract. Specifically, examiners found that, for consumers enrolled in a preauthorized electronic fund transfer payment system to pay their regular monthly payments, the servicers did not debit consumers’ final payments when they were a different amount from their regular monthly payments. Servicers
failed to adequately communicate to consumers that they must remit the final payment manually, despite being enrolled in autopay.
On July 2, the Federal Trade Commission reached a proposed settlement with an online used car dealer to resolve allegations that the company violated the FTC Act, the Used Car Rule, the Pre-Sale Availability Rule, and the Mail, Internet, and Telephone Order Rule (“MITOR”). The FTC alleged that the company failed to deliver purchased cars within the advertised timeframe, failed to conduct the thorough inspection process as advertised, and failed to provide the requisite Buyers Guide until late in the purchase process. The FTC filed a joint motion for entry of the FTC and the company’s stipulated order for permanent injunction, monetary judgment, and other relief to resolve allegations of misleading consumers who purchased used vehicles through the company’s website. Specifically, the FTC alleged that the company misrepresented that it thoroughly examined the vehicles before listing them for sale, in violation of Section 5(a) of the FTC Act. The FTC also alleged that the company’s website and advertising told consumers that cars would be delivered in 14 days or less, but the company often did not meet this delivery timeline and regularly failed to give consumers the opportunity to consent to a longer delivery timeline or to cancel their purchase and receive a refund, as required by the MITOR. The FTC’s Used Car Rule requires that the dealer prominently display on each used car a Buyers Guide, which discloses warranty information. The FTC alleged that the company failed to provide the Buyers Guide until late in the purchase process and that the Buyers Guides were often missing required information. The FTC further alleged that the company violated the Pre-Sale Availability Rule by failing to post the terms of its warranty on the company’s website in close proximity to the warranted used vehicle offered for sale. The company neither admitted nor denied the allegations but agreed to pay $1 million to the FTC for consumer refunds, to document all claims about promises it makes regarding shipping times, to refrain from making misleading claims about inspections and shipping times, and to comply with the MITOR, the Used Car Rule, and the Pre-Sale Availability Rule. The proposed order is with the U.S. District Court for the Southern District of Texas for consideration and entry.
Issues Consent Order and Proposed
On July 9, the Consumer Financial Protection Bureau issued a consent order and proposed court order against a nationally chartered bank that offers financial services including credit cards, mortgages, home equity lines of credit, and auto loans. The consent order covers the alleged triggering of unlawful repossessions and duplicative or unnecessary vehicle loan insurance requirements and mandates that the company pay a $5 million penalty into the victims relief fund, pay redress to the 35,000 affected consumers, and cease certain challenged practices related to sales incentives. The proposed court order covers the alleged opening of fake bank accounts and, if granted, would mandate that the company pay an additional $15 million penalty into the victims relief fund and consumer redress. The CFPB’s investigation revealed that the company’s employees allegedly engaged in breaches of the Fair Credit Reporting Act and the Electronic Fund Transfer Act. Under the FCRA (15 U.S.C.
...the company allegedly opened bank accounts in consumers’ names, funded the new accounts with the consumers’ current accounts, and applied for credit cards and other lines of credit without the consumers’ knowledge or consent.
§ 1681s-2), the company allegedly furnished inaccurate or incomplete information to consumer reporting agencies regarding repossessions caused by unfairly placed or maintained force-placed insurance (“FPI”). Moreover, the company allegedly failed to notify consumers of increases in the amounts of preauthorized electronic fund transfers due to FPI, violating the EFTA (15 U.S.C. § 1693e(b)) and its implementing regulation, Regulation E (12 C.F.R. § 1005.10). Additional violations cited in the proposed court order include allegedly fraudulent sales practices, as well as opening unauthorized accounts and enrolling customers in products without their consent. According to the amended complaint, the company allegedly incentivized its sales staff to push for the sale of products beneficial to the company without the knowledge of the
consumers. In addition, the company allegedly opened bank accounts in consumers’ names, funded the new accounts with the consumers’ current accounts, and applied for credit cards and other lines of credit without the consumers’ knowledge or consent. These actions were deemed deceptive and in violation of consumer protection laws, specifically the Consumer Financial Protection Act of 2010, which prohibits unfair, deceptive, and abusive acts or practices under 12 U.S.C. §§ 5531 and 5536. The company neither admits nor denies the violations outlined in both the consent order and the proposed court order. The consent order also prohibits the company from seeking tax benefits or reimbursements for the penalties paid, ensuring that the financial repercussions serve as a deterrent against future misconduct.
On July 16, Federal Communications Commission Chairwoman Jessica Rosenworcel proposed rules that, if adopted by a vote of the full Commission at its August meeting, would seek comment on the definition and use of artificial intelligence-generated robocalls. According to the FCC’s news release, the proposed rules would define AI-generated calls and require callers
to disclose to consumers whether they use AI in their robocalls. The proposed rules would also seek comment on how to protect the positive uses of AI, such as the use of AI in calls to consumers with disabilities to promote accessibility of the telephone networks, and on technologies that can protect consumers from unwanted and illegal AI-generated robocalls. The proposed rules build on information the FCC obtained after issuing a Notice of Inquiry on November 15, 2023, that sought to gather information about how AI technology positively and negatively impacts robocalls and robotexts. The Notice of Inquiry sought comment on how to define AI in the robocall and robotext context, the current state of AI use in calling and texting, the impact of emerging AI technologies on consumer privacy rights under the Telephone Consumer Protection Act, and what, if any, next steps the FCC should take to address these issues.
On July 22, the Federal Trade Commission announced that a federal district court preliminarily enjoined certain actions and froze the assets of two companies operating as USA Student Debt Relief. The
FTC’s complaint alleged violations of the Federal Trade Commission Act, the Telemarketing Sales Rule (which implements the Telemarketing and Consumer Fraud and Abuse Prevention Act), and the Gramm-Leach-Bliley Act in connection with the defendants’ student loan debt relief services. Specifically, the FTC’s complaint alleged that USA Student Debt Relief and three individual officers of the companies used deceptive online advertising and illegal telemarketing, including calls to consumers on the National Do Not Call Registry, to offer their debt relief services. The FTC alleged that many of these telemarketing calls were made to Spanish-speaking consumers in Puerto Rico who were provided contracts written in English, even though the defendants marketed their services to those consumers in Spanish. In addition, the FTC alleged that the defendants falsely represented that they were affiliated with the U.S. Department of Education or with loan servicers that contract with the department to service federal student loans. The FTC also alleged that the defendants falsely promised to enroll consumers in federal programs that offer low, fixed monthly loan payments followed by lump-sum loan forgiveness. However, to take advantage of these programs, consumers purportedly had to pay illegal advance fees of several hundred dollars followed by monthly fees. Finally, the FTC alleged that the defendants marketed their debt relief services by
The FTC alleged that many of these telemarketing calls were made to Spanishspeaking consumers in Puerto Rico who were provided contracts written in English, even though the defendants marketed their services to those consumers in Spanish.
posting fake reviews and testimonials to their website and social media profiles, as well as to third-party consumer review platforms. In 2023, the defendants settled state enforcement actions in California and Minnesota related to their unlawful debt relief operation.
CFPB Reminds Regulators and Public that Companies Requiring Broad Confidentiality Agreements of Employees May Risk Violating the Consumer Financial Protection Act
On July 24, the Consumer Financial Protection Bureau issued Circular 2024-04 to remind regulators and the public that companies that require their employees to sign broad confidentiality agreements that do not clearly permit communications with government enforcement agencies or cooperation with government investigations risk violating the Consumer Financial Protection Act’s prohibition on discrimination against whistleblowers and undermining the government’s ability to enforce the law. Section 1057 of the CFPA provides anti-retaliation protections for covered employees — defined as “any individual performing tasks related to the offering or provision of a consumer financial product or service” — who provide information to the CFPB or any other federal, state, or local law enforcement agency regarding potential violations of laws and rules that are subject to the CFPB’s jurisdiction. The CFPB concludes in the circular that “[a]lthough confidentiality agreements can be entered into for legitimate purposes, such as to ensure the protection of confidential trade secrets, such agreements, depending on how they are worded and the context in which they are employed, could lead an employee to reasonably believe that they would be sued or subject to other adverse actions if they disclosed information related to suspected violations of federal consumer financial law to government investigators. Threats of this nature can lead to violations of Section 1057 and impede investigations into potential wrongdoing, including the CFPB’s efforts to uncover violations of the consumer financial protection laws it enforces.”
FDIC, FRB, and Office of the Comptroller of Currency Request Information on Bank-Fintech Arrangements that Provide Multiple Financial Products and Services
On July 25, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of the Currency issued a request for information on arrangements between banks and financial technology companies that provide consumers and businesses a broad range of financial products and services, including consumer credit products, commercial loans, payment products, and deposit accounts. The RFI states that “[a]lthough these arrangements may provide benefits, supervisory experience has highlighted a range of risks with these bank-fintech arrangements. The agencies support responsible innovation and support banks in pursuing bankfintech arrangements in a manner consistent with safe and sound practices and applicable laws and regulations, including[,] but not limited to, consumer protection requirements (such as fair lending laws and prohibitions against unfair, deceptive, or abusive acts or practices) and those addressing
financial crimes (such as fraud and money laundering). This request solicits input on the nature of bank-fintech arrangements, including their benefits and risks, effective risk management practices regarding bank-fintech arrangements, and the implications of such arrangements, including whether enhancements to existing supervisory guidance may be helpful in addressing risks associated with these arrangements.” Comments must be received within 60 days after the date the RFI is published in the Federal Register, which is expected shortly.
National General, Alleging Improper ForcePlacement of CPI Products on Vehicles Financed Through Wells Fargo, N.A., Between October 2005 and September 2016
On July 25, the U.S. Department of Justice (DOJ) announced that it had filed a civil complaint under the Financial Institutions Reform, Recovery, and Enforcement Act against National General Holdings Corporation and its subsidiaries (collectively, “National General”), alleging that, between October 2005 and September 2016, National General force-placed its collateral protection insurance product on vehicles financed through Wells Fargo Bank, N.A., even though it knew or recklessly disregarded the fact that car owners already had insurance through other insurers. Wells Fargo contracted with National General to identify whether a car owner had the requisite car insurance and referred to this process as loan “tracking.” The DOJ alleged that National General knew or recklessly disregarded the fact that its tracking efforts were deficient, yet it continued to improperly force-place insurance on car owners. According to the DOJ’s complaint, National General’s tracking efforts were deficient for a variety of reasons, including that it repeatedly mailed letters seeking insurance information to car owners at addresses to which mail had previously been sent but had been returned as undeliverable, made no phone calls to insurance carriers, agents, or car owners to obtain outside insurance information despite internal requirements to make a certain number of phone calls, and failed to match insurance information in its possession to financed vehicles. The complaint alleges that this conduct resulted in car owners paying premiums and other fees associated with the insurance, car owners defaulting on their financing contracts leading to vehicle repossessions, and negative impacts on car owners’ credit scores. The DOJ is seeking penalties under FIRREA.
Have you heard the news that the NADA/TADA v. FTC case challenging the FTC’s Vehicle Shopping Rule (aka
the FTC’s CARS Rule) has tentatively been set for oral argument in the U.S. Court of Appeals for the Fifth Circuit the week of October 7th? The date could certainly change as this is just tentative for now. Once the hearing has been set and the Court’s calendar page has been updated (possibly 6 weeks prior to the hearing), the Court may post a link to listen to the oral arguments live. Be sure to mark the date on your calendar(s) and grab a bag of popcorn as the outcome of the case could have a significant impact on your dealership.
So, there’s this month’s roundup! Stay legal, and we’ll see you next month.
Eric ( ejohnson@hudco.com ) is a Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com ’s Spot Delivery ®, a monthly legal newsletter for auto dealers, and a contributing author to the F&I Legal Desk Book . For information, visit www.counselorlibrary.com . © CounselorLibrary. com 2024, all rights reserved. Single publication rights only to the Association. HC# 4887-5518-4340
782 Automotive LLC Angelo Estrada 12735 Nacogdoches Rd, San Antonio, TX 78217
America’s Xtreme Auto Adam Agad 7200 Gulf Fwy, Houston, TX 77017
ATC Auto Sales,LLC Stephanie Benson 6021 Almeda Genoa Rd, Pearland, TX 77584
Auto Moto Car Deals Arshan Parvizi 11560 North Houston Rosslyn Road, Houston, TX 77088
AutoFLEX, LLC Edgard Ortiz 406 S. 23rd St, McAllen, TX 78501
Avila’s Auto Center Hilario Avila 314 N General McMullen Drive, San Antonio, TX 78237
Carnomic Auto Group Yuliana Trujillo 6227 West Commerce Street, San Antonio, TX 78237
Cars Takers Auto Inc Mohnna Abu Odeh 10055 Aeronica Lane, McKinney, TX 75071
Champion Motorplex Jesus Mata 1864 Centeno Lane, Rio Bravo, TX 78046
ESV Autogroup LLC DBA Supreme Motors Arlieth Santamaria Mejia 19402 Kuykendhal Rd, Spring, TX 77379
Fob Depot LLC Robert Baker 5470 Kietzke Ln, Suite 300, Reno, NV 89511
Future Mobility Systems of Texas ,Inc. Guy Tucker 4371 S FM 51, Decatur, TX 76234
Green Source Auto Group LLC Edwin Luna 9007 W Montgomery Rd, Houston, TX 77088
H Classic Group LLC Noemí Sanchez 1018 E Main St, Grand Prairie, TX 75050
Hidalgo Motors Co LLC Stevan Vasquez 11008 Tall Timber Dr, Houston, TX 77065
Honorable Auto Sales Bernard Balero 7304 82nd, Lubbock, TX 79424
Investment Automotive Group Micah Robinson 2021 N Redwood Rd, Salt Lake City, UT 84116
Koby Auto Sales LLC Cindy J. Crespo Giraldo 9002 Meadowview Dr, Houston, TX 77037
KRM Motors Mhd Almahaini 8880 Camp Bowie Blvd, Fort Worth, TX 76116
Lobo Motors Hugo Salinas 640 W Palma Vista, Palmview, TX 78572
McCreary Auto Brokers BC McCreary 1033 South Treadaway, Abilene, TX 79602
Miko Car Company Cesar Duarte 6730 Doniphan Dr, Canutillo, TX 79835
Motor World Muhammed Hameed 6803 Port Vista Lane, Houston, TX 77083
National Auto Sales Charles Williams 1106 W. Veterans Memorial Blvd, Killeen, TX 76541
North Texas Auto Sales Bruce Eisenberg 2706 Carriage Trail, McKinney, TX 75072
Pearl Motors Muhammed Motiwala Memon 207 Old West Trl, Buda, TX 78610
Perfect Motorcars Sylvia Condado 1206 Tappan Circle, Carrollton, TX 75006
Pro-Auto Group LLC Olga Villarreal 7973 Alameda Ave, El Paso, TX 79915
Ranchero Auto Sales Joel Aguilar 16801 I-27, Canyon, TX 79015
Scopo Help LLC Andrew Bertrand 17968 Fm 2493, #150, Flint, TX 75762
Space City Motors Company Ontario Dickey 1110 North Loop 336 West, Suite 330D, Conroe, TX 77301
West Texas Classic Autos, LLC Gary Phillips 2210 Topeka Avenue, Lubbock, TX 79407
ASSOCIATE
Centex Auto Title Bruce Ormand 9707 FM 812 Ste.4, Austin, TX 78719
Holman Business Services Scotty Holman 200 University Blvd, Suite 225-136, Round Rock, TX 78665
Innovative F&I Services Inc Marty Lisk 701 Three Creeks Dr, Bertram, TX 78605
Saferide.ai William Bright 304 S Jones Boulevard, STE 394, Las Vegas, NV 89102
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Ensure your staff knows how to protect consumer information to
Ensure your staff knows how to protect consumer information to comply with the FTC requirements and avoid inadvertent comply with the FTC requirements and avoid inadvertent exposure of your customer's information, government exposure of your customer's information, government enforcement actions, lawsuits, and bad press. enforcement actions, lawsuits, and bad press.
Brought to you by the Texas Independent Automobile Dealers Brought to you by the Texas Independent Automobile Dealers Association. Powered by the Dealer Education Portal. Association. Powered by the Dealer Education Portal.
Visit Visit TIADA’s website TIADA’s website o o r
by TIADA staff
At its meeting on Sunday, July 21, 2024, TIADA took the following actions:
President Eddie Hale called the meeting to order at 3:00 p.m.
Special guest Senator José Menéndez welcomed our attendees and made a few remarks.
With no contested races, Chairman Ryan Winkelmann asked for a motion directing the Secretary to submit a single ballot for the following candidates:
Chairman of the Board: Eddie Hale;
President Elect: Greg Phea;
Secretary: Russell Moore;
Treasurer: Greg Reine;
Vice President Region 1: Cesar Stark;
Vice President Region 2: Tyler Simmons;
Vice President Region 3: Chad Lancaster;
Vice President Region 4: Lowell Rogers;
Vice President Region 5: Adrian Sanchez;
Vice President Region 6: Cesar Torres;
Vice President at Large: Christina Sabillón;
Vice President at Large: Lucas Ponder.
Moved by April Hanson, seconded by Mark Jones — Passed.
Russell Moore presented the Bylaws Committee Report. There were no changes to the bylaws.
Mark Jones presented the Legislative Committee Report. There were no changes to the legislative agenda.
A motion was made to adjourn the meeting.
Moved by Lowell Rogers, seconded by Cesar Torres – Passed.
Meeting adjourned at 4:00 p.m.
Respectfully submitted, Greg Phea, Secretary
A complete copy of any reports referenced in this document and more detailed notes from the meeting are on file at the TIADA office and available upon request.
G.R. Moore
The Car Shack
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
Cesar Stark
S & S Motors
Meeting – 3rd Friday (Monthly)
Jerry Smith
H J Smith Automobiles
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
Robert Edenfield
Mi Pueblo BRP
Meeting – 2nd Tuesday (Monthly)
Nory Pakravan
210 Auto Credit
(dates and times can be found at txiada.org/Calendar_List.asp, when scheduled)
This is a great time to congratulate the dealers and vendors who made your 2024 TIADA Conference and Expo such a resounding success. Many have said it was the best conference they ever attended. It was a great example of how your association, which started in 1944, has grown to serve industry needs for 80 years. My hat is off to the courageous individuals who had the vision, the gumption, and yes, the desire to open their pocketbooks to establish your member-owned and member-governed association. So, let’s see what came from the seeds they planted.
Again, many thanks to you, the dealers and vendors that made this event so successful. The conference was a success for the dealers attending the classes and the chance to touch and talk to knowledgeable experts in the expo hall. Learning about the latest advancements for operating their companies and making their life easier and their bottom line bigger. There is also the making of new acquaintances or just renewing old ones that is so rewarding. It truly was an experience of learning, teaching, and fellowship, as well as just a darn good time. That good time happened on both a business side and, for those of you who also attend with your family and coworkers, a chance to enjoy time together, which seems harder and harder to find. It doesn’t hurt that
by John Frullo
TIADA EXECUTIVE DIRECTOR
you are doing so in another beautiful resort we use to host our events.
Many members went out of their way to complement this year’s format, which was geared to discuss the laws that govern, that are going to govern, or that are proposed to govern us coming from both state and federal sources. You heard from representatives from The Office of Consumer Credit Commissioner and The Texas Department of Motor Vehicles. There were the highly sought-after roundtables, the education classes, and an unprecedented three general sessions. Lastly, we can’t emphasize enough the quality of the world-class exposition hall that was highly enjoyed by dealers and the best of the industry vendors.
So, what is the “takeaway?” In the fast-changing times of today’s world, including politics, industry innovations, consumer watch groups, and state and federal governmental regulations, why is it important to have an association and for you to participate in it? It’s simple, so you don’t get left behind. Please read the industry newsletter and Texas Dealer magazine, and make plans to attend the beautiful Gaylord Texan Resort & Convention Center from July 27–July 29 next year for the 2025 TIADA Conference & Expo to keep in step with our changing environment.
...why is it important to have an association and for you to participate in it? It’s simple, so you don’t get left behind.
THROUGHOUT THE MONTH OF OCTOBER
12,000+ UNITS
PARTICIPATING LOCATIONS
Manheim San Antonio
Manheim Dallas-Fort Worth
Manheim Houston
Manheim Texas Hobby
Manheim Dallas
Manheim El Paso
October 9
October 10
October 15
October 17
October 23
October 24 2,500+ Units 1,600+ Units 1,300+ Units 3,000+ Units 4,200+ Units 500+ Units
JOIN US TO TACKLE ALL YOUR INVENTORY NEEDS!
Enjoy food, top buyer prizes, giveaways, games and more at each Texas location as we throw down with the best deals in the state!