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Archive July 2024

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Unforgettable Moments at the 2024 TIADA Conference & Expo in San Antonio

The 2024 TIADA Conference & Expo, held at the JW Marriott Hill Country Resort & Spa in San Antonio, was a landmark event that brought together a record number of dealers, including a significant number of first-time attendees. This year’s conference featured an innovative restructuring of its educational sessions, providing attendees with a more focused and in-depth learning experience.

 

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OCCC Plans to Amend Rules for Motor Vehicle Sales Finance

The OCCC has proposed amendments to the OCCC's rules for motor vehicle sales finance that represent significant updates and clarifications. These amendments seek to streamline processes, improve consistency with other licensed industries, and ensure that regulatory language is up-to-date and clear. These updates are crucial for maintaining compliance and adapting to technological advancements in the industry.

 

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TxDMV's Leadership and Guidance at the 2024 TIADA Conference & Expo

The 2024 TIADA Conference & Expo was a significant event for independent automobile dealers in Texas. One highlight of the conference was the Texas Department of Motor Vehicles (TxDMV) providing leadership and guidance on several critical issues affecting independent dealers, including the shift away from temporary tags, the required implementation of webDEALER for all dealers, and more. This article summarizes the key points and updates shared by TxDMV at the conference.

 

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CFPB Takes Action Against Fifth Third for Wrongfully Triggering Auto Repossessions and Opening Fake Bank Accounts

Bank will pay consumer redress and is banned from using sales quotas that spawn fraud.

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today took action against repeat offender Fifth Third Bank for a range of illegal activities that would result in the bank paying $20 million in penalties in addition to paying redress to approximately 35,000 harmed consumers, including about 1,000 who had their cars repossessed. Specifically, the CFPB is ordering Fifth Third Bank to pay a $5 million penalty for forcing vehicle insurance onto borrowers who had coverage. The CFPB also filed a proposed court order that would require Fifth Third Bank to pay a $15 million penalty for opening fake accounts in the names of its customers. The proposed court order bans Fifth Third Bank from setting employee sales goals that incentivize fraudulently opening accounts.

 

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TxDMV Proposes Rule Changes to Advance Metal Plate Transition

The Texas Department of Motor Vehicles (TxDMV) is moving forward with the transition from paper tags to metal plates by proposing new rule changes. These proposed changes, published in the July 12, 2024, issue of the Texas Register, are the next step in the process. In addition to the metal plate transition, there are other proposed rule revisions that dealers should review. The public can comment on these changes until 5:00 p.m. on August 12, 2024. For more information, you can access the full text of the proposed rules on the TxDMV website.

 

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Texas Independent Dealer Ordered to Pay $1 Million in FTC Settlement

The Federal Trade Commission (FTC) recently settled a $1 million complaint against an independent online retailer. The FTC accused the company of engaging in deceptive practices that the agency claims have harmed consumers. The case underscores the FTC’s increasing crackdown on businesses, sending a clear message to all in the independent automobile dealership industry about the importance of compliance with FTC regulations. What's clear from this settlement is that the FTC has shifted gears and made stricter regulations than what most dealers currently expected.

 

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Documentary Fees, Temporary Tags, Safety Inspections, and Catalytic Converter Theft

Automobile regulations in Texas are undergoing significant changes following the 88th Texas Legislature, Regular Session (2023). Three pivotal bills—House Bill (HB) 718, HB 3297, and Senate Bill (SB) 224—have brought about substantial shifts in how dealerships and motorists interact with Texas Department of Motor Vehicles (TxDMV) rules and requirements. In addition, the OCCC During the TxDMV Board Meeting on June 27, 2024, the implementation of these legislative changes was a focal point.

 

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CFPB’s New Enforcement Order Registry: What BHPH and Independent Dealers Need to Know

On June 3, 2024, the Consumer Financial Protection Bureau (CFPB) issued a final rule to establish a new enforcement order registry aimed at identifying nonbank financial institutions subject to federal, state, or local enforcement orders. This new rule, effective from September 16, 2024, targets a broad range of entities, including buy-here, pay-here (BHPH) and independent dealerships, along with their associated finance companies.

 

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CDK Global Cyberattack: Class Action Lawsuit Highlight Importance of Data Security

The recent cyberattack on CDK Global, a leading provider of software services to automobile dealerships, continued to pose significant challenges for the company and its clients into July. The ransomware attack, which occurred last month, led to widespread service disruptions that stretched into their third week. At the time of this article's writing, CDK Global claims that most of its customers are back online with the company’s dealership management system, and the company plans to have all systems up and running no later than July 4.

CDK Global’s software services are critical for more than 15,000 car dealerships across the United States. These services include systems for sales, inventory management, and customer relations. As of now, many of these services remain only partially operational, causing substantial difficulties for dealerships that rely on CDK’s platform to conduct daily business activities.

 

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