As your trusted Dealer Management Software (DMS) provider, we’re here to keep you informed about important regulation updates from the Texas Office of Consumer Credit Commissioner (OCCC). If you operate a motor vehicle sales finance business in Texas, there are critical deadlines and proposed rule changes you need to be aware of to remain compliant and ensure smooth operations.
Key Dates: MVSF License Renewals Open October 1st
All Texas motor vehicle sales finance dealers are required to renew their licenses between October 1st and October 31st. The OCCC renewal portal will open on October 1st and close at midnight on October 31st. It is crucial to renew your license within this window, as failure to do so will result in license cancellation, which can significantly disrupt your business operations.
Our Recommendation:
- Start the renewal process as early as possible, ideally at the beginning of October. Avoid waiting until the last minute to reduce the risk of complications and ensure you have ample time to address any issues that may arise during the renewal process.
Understanding the Proposed Rule Changes for Motor Vehicle Sales Finance
In addition to license renewals, the Finance Commission has proposed amendments to motor vehicle sales finance rules. These changes are currently open for public comment until September 29, 2024. Here’s a breakdown of the key proposed changes:
- Compliance Officer Requirement:
- All license applicants will now need to designate a compliance officer. This individual will be responsible for overseeing regulatory compliance within your business.
- License Application Denial Process:
- The proposed amendments provide clarity on the process the OCCC follows when denying a license application. Understanding these criteria can help prevent complications in future applications.
- Recordkeeping Requirements:
- The new rules will affect how you manage records related to motor vehicle retail installment transactions. Review these changes to ensure your recordkeeping practices align with the new standards.
- Contract Language Updates:
- Revisions to the model contract language and updates to the process for submitting nonstandard contracts are included in the proposed amendments. It is essential to familiarize yourself with these updates, as they may impact your contract submissions.
- Technical Updates:
- Several technical changes are proposed to enhance clarity and efficiency within the current regulatory framework.
What Should You Do Now?
- Mark Your Calendar for License Renewal:
- Set a reminder to renew your Motor Vehicle Sales Finance license starting October 1st. Remember, an active license is crucial for your business operations. Without it, you risk significant disruptions.
- Review the Proposed Rule Amendments:
- Take the time to review the proposed changes thoroughly. Ensure your compliance officer is aware of these updates, especially those concerning recordkeeping and contract submissions.
- Submit Your Feedback by September 29th:
- If you have concerns or suggestions about the proposed amendments, submit your comments to the OCCC by the September 29th deadline. Your input can shape the final rules and how they impact your business.
How DealPack, Your DMS Software, Supports Compliance
As a comprehensive Dealer Management Software (DMS) provider, Deal Pack is committed to helping you navigate these regulation updates with ease. Our software is designed to facilitate accurate recordkeeping and streamline contract management, helping you stay aligned with OCCC requirements. While these changes primarily require action on your part, Deal Pack is here to support you every step of the way.
Staying Ahead of Regulatory Changes
Staying compliant with state regulations is vital for maintaining uninterrupted operations and avoiding potential penalties. By renewing your license early and adapting to the proposed rule changes, you can ensure that your dealership remains in good standing with the OCCC.
If you have any questions or need assistance with the renewal process, please don’t hesitate to contact our team. We’re here to help you navigate these regulation updates smoothly and keep your dealership on the road to success.
Contact us today to learn more about how DealPack DMS can support your dealership’s compliance efforts.