Requirement For Customer ID

[OnSolidGround]

Jurisdiction

Ohio

is there a law or regulation that requires a dealership to use credit reports to verify the customer's identity if the buyer is paying for the car outright with a cashier's or personal check?

Can a driver's license, birth certificate and Social Security card work?

 

[PayrollHRGuy]

There is no such law.

 

[zddoodah]

is there a law or regulation that requires a dealership to use credit reports to verify the customer's identity if the buyer is paying for the car outright with a cashier's or personal check?

I doubt it, but it would obviously be a bad business practice not to do that.

Can a driver's license, birth certificate and Social Security card work?

A social security card is not a means of identification, but it's up to the dealer to decide what is sufficient for its purposes.

 

[Zigner]

You may wish to review the federal reporting requirements for cash transactions over $10,000.00:

Report of Cash Payments Over 10000 Received in a Trade or Business Motor Vehicle Dealership QAs | Internal Revenue Service

 

[army judge]

is there a law or regulation that requires a dealership to use credit reports to verify the customer's identity if the buyer is paying for the car outright with a cashier's or personal check?

One of the many UNWRITTEN laws of common sense says, "If your custom is unappreciated, shop where you're welcomed and respected."

With a bundle of cash many merchants would worry about two things, counting the cash correctly while making sure all bills are genuine.

Another unwritten law of common sense speaks about checks, verify the amount is available and drawn on a legitimate bank and checking account.

 

[OnSolidGround]

You may wish to review the federal reporting requirements for cash transactions over $10,000.00:

Report of Cash Payments Over 10000 Received in a Trade or Business Motor Vehicle Dealership QAs | Internal Revenue Service

This will not be a cash transaction. They may still use a form 8300 if they want to but its not required. The Form 8300 Reference Guide specifically states that personal and cashier's checks are not considered cash. It refers to transactions involving coins and currency, not checks.

 

[OnSolidGround]

I doubt it, but it would obviously be a bad business practice not to do that.



A social security card is not a means of identification, but it's up to the dealer to decide what is sufficient for its purposes.

Its still a legal tool for the purpose of matching signatures.

As stated in the original post, this will not be a cash transaction. They may still use a form 8300 if they want to but its not required. The IRS regulations refer to transactions involving coins and currency, not checks.

There is no such law.

Thank you so much.

 

[Zigner]

Its still a legal tool for the purpose of matching signatures.

One does not have to sign their social security card. It remains valid even if unsigned.

 

[zddoodah]

I doubt it, but it would obviously be a bad business practice not to do that.

A social security card is not a means of identification, but it's up to the dealer to decide what is sufficient for its purposes.

Its still a legal tool for the purpose of matching signatures.

Not entirely sure what you're talking about (i.e., what "its [sic]" refers to), but a social security card does not have a signature on it.

 

[Zigner]

Not entirely sure what you're talking about (i.e., what "its [sic]" refers to), but a social security card does not have a signature on it.

While technically you are correct in that newly issued social security cards don't have signatures on them, the fact is that they have a signature line on them. Here is a link to an IRS document that shows some samples: https://www.irs.gov/pub/irs-pdf/p3535.pdf

 

[zddoodah]

While technically you are correct in that newly issued social security cards don't have signatures on them, the fact is that they have a signature line on them.

Perhaps, but if I steal your SS card that you haven't signed and sign your name myself, it's a pretty piss poor "tool for the purpose of matching signatures," as the OP suggested.

 

[PayrollHRGuy]

Perhaps, but if I steal your SS card that you haven't signed and sign your name myself, it's a pretty piss poor "tool for the purpose of matching signatures," as the OP suggested.

It's a pretty piss poor tool to use as an ID in the first place.

 

[Zigner]

Perhaps, but if I steal your SS card that you haven't signed and sign your name myself, it's a pretty piss poor "tool for the purpose of matching signatures," as the OP suggested.

I agree - I was simply pointing out that the cards contain a place for a signature.

The card is clear in stating that it is not to be used for identification.

 

[Red Kayak]

is there a law or regulation that requires a dealership to use credit reports to verify the customer's identity if the buyer is paying for the car outright with a cashier's or personal check?

While there is no law specifically requiring this, there is also no law saying that they are not allowed to require it.

It is not unlawful for them to ask for this. It is not a form of discrimination.

You have asked if it's required by law, because you don't wish to comply. What you have to understand is that businesses are allowed some level of discretion to make their own policies, so long as it does not violate the law. As long as they apply to same policy to all customers, they're okay - if they pick and choose, they might be accused of discrimination against some protected group.

 

[OnSolidGround]

While there is no law specifically requiring this, there is also no law saying that they are not allowed to require it.

It is not unlawful for them to ask for this. It is not a form of discrimination.

You have asked if it's required by law, because you don't wish to comply. What you have to understand is that businesses are allowed some level of discretion to make their own policies, so long as it does not violate the law. As long as they apply to same policy to all customers, they're okay - if they pick and choose, they might be accused of discrimination against some protected group.

Good information, thank you. I'm not concerned about discrimination I'm opposed to allowing them access to my credit reports when I'm not applying for credit. But car dealerships are famous for telling prospective buyers that there is a legal requirement for them to pull your reports. They want to be able to offer their financing because they make money on it. That's why I asked about a legal requirement. If it becomes an issue I'll gladly take my money elsewhere.

 

[OnSolidGround]

Not entirely sure what you're talking about (i.e., what "its [sic]" refers to), but a social security card does not have a signature on it.

Mine does. But then it's pretty old.

 

[OnSolidGround]

I agree - I was simply pointing out that the cards contain a place for a signature.

The card is clear in stating that it is not to be used for identification.

I stand corrected on that point, thank you.

 

[adjusterjack]

The card is clear in stating that it is not to be used for identification.

Yet it's the de facto identification number for every US citizen that has one. Federal and state income tax returns require it and it's called, ironically, a Taxpayer Identification Number. Apply for credit you give your SSN or you don't get credit. Many other financial transactions require it. My state requires it by statute on an application for a driver license or car title/registration. Apply for employment you give your SSN or you don't get the job. I've known of employers that required the prospective employee to present the original of the card (not a photocopy) so it could be copied by the employer.

If's your national identification number folks, believe it.

 

[adjusterjack]

Good information, thank you. I'm not concerned about discrimination I'm opposed to allowing them access to my credit reports when I'm not applying for credit. But car dealerships are famous for telling prospective buyers that there is a legal requirement for them to pull your reports.

I bought a car for cash in 2020 and used a cashier's check. Out of curiosity I checked my credit reports for later that year. The dealer did not run my credit.

 

[Zigner]

Yet it's the de facto identification number for every US citizen that has one. Federal and state income tax returns require it and it's called, ironically, a Taxpayer Identification Number. Apply for credit you give your SSN or you don't get credit. Many other financial transactions require it. My state requires it by statute on an application for a driver license or car title/registration. Apply for employment you give your SSN or you don't get the job. I've known of employers that required the prospective employee to present the original of the card (not a photocopy) so it could be copied by the employer.

If's your national identification number folks, believe it.

True, but we're actually not talking about the number. It's the card itself that is not intended for use as identification.