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Got Compliance Questions? We've Got Answers!

TIADA's Compliance Consultation Service (CCS) is a valuable resource that members may access. Through CCS, TIADA staff assist members on a wide variety of dealership issues, including state regulation compliance, navigating consumer complaints and attorney referrals. This post reviews a few questions that TIADA members have presented to CCS.  This sample provides a good range of the types of resolutions that ultimately help members get back to what they do best - selling cars.

Remember, you can submit your own questions using our ONLINE FORM. It's the fastest way to get answers to your compliance issues! 
QUESTION: Hello, I know I learned this in one of the classes, but can't remember.  My question is, how long do I need to keep old deal jackets once they have paid off? We do our own financing and do not report credit.
 
RESOLUTION: Thanks for your question. 
  • The OCCC says to retain deal jackets for three years from the date that the last payment was received, or two years from the date the final entry was made, whichever is later. 
  • TXDMV says to keep purchase and sales records for four years.
  • The Comptroller says to keep the deal jacket for four years after the date that the last payment was received, or from the date of sale.
  • Finally, for IRS requirements, we recommend that you contact your dealership's CPA.Bottom Line: four years from the date you receive the last payment. I attached an article from a recent Texas Dealer magazine that goes into detail re: record retention.
QUESTION: Two major issues with different insurance companies. One won't pay up for a total loss of $8000 from back in December. Other is lowballing their total loss payment. Do we have other options besides filing a complaint with the Department of Insurance?
 
RESOLUTION: TIADA referred this member to an attorney who participates in the Attorney Referral Program. These attorneys have extensive experience in a variety of practice areas, and much of that experience was earned by representing independent dealers.
 
QUESTION: We are opening a new location. I sent the TxDMV paperwork and bond certificate via mail on January 18. We have not received a response as of February 3. Please help.
 
RESOLUTION: TIADA reached out to TXDMV and found that the member's application for a new dealer license was approved that morning. The member's new license was placed in that day's mail.
 
QUESTION: The OCCC performed a review and found an error in one of our processes that has resulted in us overcharging some customers on their inspection fee in their contract. We charged certain customers for a Safety + Emissions inspection when only a Safety inspection was performed. We thus owe [$___]to some customers. What they're saying is that we have to write every single affected customer a check and mail it to them right away. What we've been doing is mailing out letters to every customer with instructions on how to claim their refund. This makes sure we're not sending checks to old addresses and will help to prevent check fraud, I think. However, it appears that they're not going to allow us to do this. Have you all seen this before? What is your recommendation on how to proceed?
 
RESOLUTION: This is pretty standard for OCCC. They may allow a company to pay a fine but that is usually more money than the restitution amount. Sending the checks to the last known address on file, then turning over any returned checks/unclaimed monies to the Comptroller is usually the easiest route.
 
QUESTION: Sold a car as-is, and the customer signed an arbitration agreement. Now the motor is shot. I received a letter from the customer's attorney. The customer is suing me under the Deceptive Trade Practices Act for $XX,000 for a car she bought for $X,000.
 
RESOLUTION: TIADA referred this member to our General Counsel, Michael Dunagan.

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