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OCCC Renewal Deadline and Significant Rule Changes
- By: TIADA Compliance
- On: 09/16/2024 19:05:14
- In: Texas Posts
- Comments: 0
The Office of Consumer Credit Commissioner (OCCC) has released two critical updates that motor vehicle sales finance (MVSF) dealers must know. First, the OCCC reminds dealers about the timeline for MVSF license renewals. Second, the Finance Commission has published proposed amendments to motor vehicle sales finance rules. Below is a breakdown of these updates and what they mean for your business.
MVSF License Renewals Open October 1st
All motor vehicle sales finance dealers must renew their licenses between October 1st and October 31st. The OCCC will open the renewal portal on October 1st and close it promptly at midnight on October 31st. Dealers must renew their licenses within this window, as any licenses not renewed by midnight on October 31st will be canceled.
Having an active license is essential for conducting business, and a license cancellation could result in significant disruptions. To avoid issues, dealers are strongly encouraged to complete their renewals early in the month and ensure all required information is submitted accurately. Late renewals or missed deadlines could lead to additional complications and delays, so don't wait until the last minute.
Proposed Rule Changes for Motor Vehicle Sales Finance
In addition to license renewals, dealers should be aware of important changes coming to the industry's regulatory environment. On August 16, 2024, the Finance Commission voted to publish amendments to the rules governing motor vehicle sales finance. These amendments are open for public comment until September 29, 2024.
Key proposed changes include:
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Compliance Officer Requirement: License applicants will now be required to provide the name of their compliance officer. This added layer of accountability ensures that each business has a designated individual responsible for overseeing regulatory compliance.
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License Application Denial Process: The amendments clarify the process the OCCC follows when denying a license application. Dealers can now better understand the criteria for denial, which can help prevent future complications.
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Recordkeeping Requirements: New rules will impact how dealers manage records related to motor vehicle retail installment transactions. It's crucial to review the proposed changes to ensure your current practices align with the new standards.
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Contract Language Updates: The amendments also propose revisions to the model contract language and update the process for submitting nonstandard contracts. This change could affect how contracts are written and submitted for approval, so be sure to review these changes carefully.
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Technical Updates: The proposed amendments include various technical changes to improve clarity and efficiency within the current regulatory framework.
How to Provide Feedback on the Proposed Rule Amendments
Dealers have until September 29, 2024, to submit official comments on the proposed amendments. This is an important opportunity for industry professionals to provide input that could shape the final rules. You can view a recording of the OCCC's July 29 webinar on the proposed amendments here, which provides further insights into the changes and how they could affect your business.
For dealers looking to stay compliant and avoid costly disruptions, it's crucial to stay up to date with these developments. We recommend reviewing the proposed amendments in detail and submitting any comments or concerns before the deadline.
What Dealers Should Do Now
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Mark Your Calendar for License Renewal: Set a reminder for October 1st to start the renewal process as early as possible. Waiting until the last minute can lead to complications and potentially cancel your license.
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Review the Proposed Rule Amendments: The proposed changes could significantly impact your operations, so take the time to review them thoroughly. Ensure your compliance officer is informed about the updates, particularly concerning recordkeeping and contract submissions.
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Submit Comments by September 29th: If you have concerns or suggestions regarding the proposed amendments, please submit your official comments to the OCCC before the deadline.
Staying informed and proactive is key to navigating the changing regulatory environment. By keeping these important dates in mind and preparing for the changes ahead, you'll ensure your business remains compliant and well-positioned for the future.
For more information or assistance with the renewal process, please contact TIADA.
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