Pub. 4 2015-2016 Issue 1

Summer 2015 23 In real life, the stakes are too high for a dealer to rely on this translator exemption: the “savings” of a few translated documents are not worth the risk of rescission in case the customer’s translator subsequently (and conveniently) decides that his or her English or Vietnamese isn’t quite up to snuff. We strongly recommend against relying upon this exemption, and instead provide translations even when the customer provides their own interpreter. [Reference: Civil Code § 1632(h)] How Do I Prove Compliance? You have the required foreign language signs posted in all F&I Offices where foreign language-negotiated transactions may be signed; you have translated copies of all of the required documents; and have established a system and training to ensure that foreign language transactions are handled appropriately. But what can you do to avoid a“he-said/she-said” dispute if a customer is willing to lie under oath and state that they did not receive a translated copy of required documents in a court of law? A simple option would be to print the translated contract, draw a line diagonally across the front of the translation and have the customer sign across the line. The customer should then be given a copy and the dealer should keep the original. This would show that the customer at least received a translated copy of the contract, and this process can be repeated for other documents requiring translation. A more paper-intensive, but even safer, option would be to also use a Translated Contract Acknowledgment Form, such as Reynolds & Reynolds LAWCA-TCA. This form can be used to demonstrate either that the transaction was entirely negotiated in English (checking that box), or that the customer received a translated and filled-in copy of the agreement prior to signing the sale or lease agreement (checking both the box acknowledging receipt of the translation and the appropriate language box), signed by the customer. Many dealers ask whether they should use this form with all transac- tions, or only when a transaction is negotiated in a foreign language. The safest approach (although cumbersome) would be to use this form with all transactions—doing so can provide accountability for your finance staff through auditing, a reminder of the need to provide the translation, and customer-signed evidence that the documents were provided—particularly for dealers who perform a significant number of foreign language transactions. For dealers who only perform a small number of foreign language transactions and seek to avoid the use of another document, we advise at least using this form for those few foreign language transactions. We advise against simply deciding whether to use this form based upon a customer’s ethnicity or last name: doing so may be offensive to some customers, and can provide a false sense of security when Mr. and & Mrs. Jones return from their mission in the Philippines, visit your store, and negotiate a vehicle sales transaction in Tagalog. Note: Dealers should not use this form with the “English Only” box checked as part of an attempt to avoid the translation requirement if the transaction was, in fact, negotiated in a foreign language. What About Leases? While Reynolds and Reynolds prints the industry standard LAW 553- CA-ARB installment sale contract in all five mandatory foreign languages, most finance companies insist that lease agreements be printed on their own proprietary lease forms. In 1999, the California New Car Dealers Association (CNCDA), then the California Motor Car Dealers Association, successfully sponsored Assembly Bill 714 (Marco Firebaugh, D—East Los Angeles) to require finance companies that provide dealers with preprinted Continued on page 24 lease contracts to provide a Spanish language translation upon request. As discussed earlier, the legislation expanding the translation requirements to agreements negotiated in Chinese, Tagalog, Vietnamese, or Korean did not pass until 2003—two years later. While some finance companies provide Asian-language translations of their proprietary lease agreements, they are not required to do so, and most do not. Accordingly, dealers must be cautious in negotiating lease agreements in foreign languages other than Spanish, and be mindful of which finance companies provide required translations. Given that the law effectively limits dealers to offering terms to foreign language customers that will be purchased by finance companies who provide preprinted Asian language translations, dealers should tread carefully in this area and in consultation with competent counsel. [Reference: Civil Code § 2991] What About Buyers Guides? The FTC’s Used Car Rule requires dealers to post Buyers Guides on used vehicles offered for sale, and establishes both English and Spanish Language versions of the form. The law requires that if a dealer conducts “a sale in Spanish, the [posted Buyers Guide] . . . must be in that language.” Effectively, the law requires that the Spanish Language version be posted on the vehicle prior to Spanish-language discussions commencing. At first glance, this seems like an impossible task. Howare you supposed to predict that a customer will start speaking Spanish? Should you pause discussions and put up a translated Buyers Guide once a customer says “me gustaria comprar un coche”? Effectively, dealers who have staff that negotiate in Spanish should be sure that both English and Spanish language Buyers Guides be posted on their used vehicle inventory (including demos and unwinds). The FTC’s Official Staff Commentary for the Used Car Rule alludes to this strategy as well, stating that “dealers must post both the English and Spanish versions of the Buyers Guide where a substantial number of sales are made in both languages.” This is discussed further through the following FTC illustration: You are a dealer who makes a substantial number, but not a majority, of your sales to Spanish speaking customers. Your staff is trained to conduct sales in both Spanish and English. Should you display both a Spanish and English version of the Buyers Guide on all your vehicles? Yes. To ensure your compliance with the Rule, it is a good idea to post both versions of the Buyers Guide if you expect that a sale could be conducted in either Spanish or English. A Spanish language Buyers Guide must be posted on a used vehicle before you begin to discuss, in Spanish, that vehicle with a customer. Therefore, as a practical way to ensure compliance, you should post both English and Spanish Buyers Guides if you make a large number of sales in both languages. So there you have it from the horse’s mouth. We’re just happy that this law does not apply to the Asian languages—yet! [Reference: 16 Code of Federal Regulations 455.5; 53 FR 17660-01] What About Co-Signer Notices? California law requires that creditors (including dealers) who obtain signatures of more than one person (unless married) on a credit or lease agreement must provide a credit or lease (as appropriate) “Notice to Co-signer” in English and Spanish to each co-signer who does not receive the benefits of the contract. The law also provides that when the contract is written in a language other than English or Spanish, the