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Making a List, Checking It Twice....Preparing for an OCCC Audit

This is the time of year where we hear all about lists: The Naughty List, Christmas Wish Lists, etc. However, for those dealers that are facing an audit from the Office of Consumer Credit Commissioner, it would be a good idea to make a list of necessary documents to have available. In this week's blog post, we provide just such and itemized list to make sure those dealers are ready and their audit goes smoothly. Even if you aren't facing an audit right now, looking over this checklist can help a dealer stay organized and be better prepared in the event they ARE audited.  

OCCC AUDIT CHECKLIST:

Contract Issues

1. Obtain OCCC vehicle finance license (dealership and related finance Company)
2. Use proper contract form
3. Use proper contract software (is the program on OCCC list?)
4. Maintain financing documents (later of four years from contract or 2 years from final entry)
5. Maximum interest rate (what is contract rate?)
6. Regulation B - use proper credit application form
7. Regulation B - statement of reason for denial letters
8. Use co-signer disclosure form; difference between co-maker and cosigner
9. Overcharge on transfer fees - registration calculation problem (only pass through actual charges incurred)
10. Use of trade-in disclosure form
11. Handling deferred down payments
12. Late payment penalty
A. Must be disclosed in writing
B. May be assessed after installment is 15 days late
C. Maximum penalty is 5% of installment amount
D. One penalty per installment period
13. Doc fee amount and disclosure: poster displayed in closing area & must appear on buyer's order
14. Handling negative equity trade-ins
15. Financing repairs
16. Phantom insurance and service contract charges
17. Tracking and disabling device disclosures; no installment fee
18. Safety inspection fee charge
19. Hindering secured creditor notice
20. Fee for credit/debit card use

Collection and Repossession Issues

1. Collection fees (no pass-through of collection fees)
2. Repossession fees and upcharges; in-house repossessions
3. Repossession notices and forms
4. Holding period on strict foreclosure and 60 per cent rule
5. Statement of account on private sale and refund of surplus
6. Has debtor's personal property been properly handled?
7. Bad check charge- maximum charge for bad check is $30
8. Discharge lien timely

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