| (A) Required information. A licensee must maintain
or produce an assignment report, whether paper or electronic, including
any Texas Finance Code, Chapter 348 retail installment sales contract
made by or acquired by the licensee that is assigned from its licensed
or registered location. The assignment report must show the name of
the retail buyer, the account number or other unique number given
to the retail buyer, the date of assignment, and the name and address
to which the accounts are assigned.
(B) Securitization or financing exception. If the servicing
rights are retained by the licensee, then the licensee is not required
to include in the assignment report retail installment sales transactions
that were assigned to a legal entity as part of a securitization agreement.
A licensee is also not required to include in the assignment report
retail installment sales transactions that have been pledged as collateral
for a bona fide financing arrangement to the licensee.
(5) General business and accounting records. General
business and accounting records concerning retail installment sales
transactions must be maintained. The business and accounting records
must include receipts, documents, or other records for each disbursement
made by the licensee at the retail buyer's direction or request, on
his behalf, or for his benefit, that is charged to the retail buyer,
including repossession, sequestration, disposition, or legal fees
relating to repossession, sequestration, or disposition. The licensee
is not required to produce information protected under the attorney-client
privilege or work product privilege.
(6) Insurance loss records. Each licensee who negotiates
or transacts the filing of insurance claims must maintain a register
or be able to generate a report, paper or electronic, reflecting information
to the extent received by the licensee on credit life, credit accident
and health, credit property, credit involuntary unemployment, and
single-interest insurance claims whether paid or denied by the insurance
carrier. If the reason for the denial of a credit life insurance or
credit accident and health insurance claim is based upon the medical
records of the retail buyer, supplemental records supporting the denial
of the claim must be made available upon request.
(A) Credit life insurance claims. The register or report
pertaining to credit life insurance claims must show the name of the
retail buyer, the account number, and the date of death.
(B) Credit accident and health insurance claims. The
register or report pertaining to credit accident and health insurance
claims must show the name of the retail buyer, the account number,
and the date of the initial filing of a claim for any continuous period
of disability.
(C) Credit involuntary unemployment insurance claims.
The register or report pertaining to credit involuntary unemployment
insurance claims must show the name of the retail buyer, the account
number, and the date of the initial filing of the claim.
(D) Credit gap insurance claims. The register or report
pertaining to credit gap insurance claims must show the name of the
retail buyer, the account number, and the date of the claim.
(E) Collateral protection insurance claims. The register
or report pertaining to collateral protection insurance claims must
show the name of the retail buyer, the account number, and the amount
of the insurance written on the motor vehicle.
(7) Debt cancellation agreement for total loss or theft
loss records. Each licensee who cancels entire balances or who cancels
only partial balances under debt cancellation agreements must maintain
a register or be able to generate a report, paper or electronic, that
reflects agreements that were either satisfied or denied. This register
or report must show the name of the retail buyer, the account number,
an indication of whether the agreement was satisfied or denied (e.g.,
"paid," "denied"), and the date of satisfaction or denial.
(8) Adverse action records. Each licensee must maintain
adverse action records regarding all applications relating to Texas
Finance Code, Chapter 348 retail installment sales transactions. Adverse
action records must be maintained according to the record retention
requirements contained in Regulation B, Equal Credit Opportunity Act,
12 C.F.R. §1002.12(b). The current retention periods are 25 months
for consumer credit and 12 months for business credit.
(9) Retention and availability of records. All books
and records required by this subsection must be available for inspection
at any time by Office of Consumer Credit Commissioner staff, and must
be retained for a period of four years from the date of the contract,
two years from the date of the final entry made thereon, whichever
is later, or a different period of time if required by federal law.
Upon notification of an examination pursuant to Texas Finance Code, §348.514(f),
the licensee must be able to produce or access required books and
records within a reasonable time at the licensed location or registered
office specified on the license. The records required by this subsection
must be available or accessible at an office in the state designated
by the licensee except when the retail installment sales transactions
are transferred under an agreement which gives the commissioner access
to the documents. Documents may be maintained out of state if the
licensee has in writing acknowledged responsibility for either making
the records available within the state for examination or by acknowledging
responsibility for additional examination costs associated with examinations
conducted out of state.
(f) Repossession records.
(1) Repossession report. A licensee must be able to
access or produce a list of all retail installment sales transactions
involving repossession by the licensee. If the list of repossessions
is accessed through an electronic system, the licensee must be able
to generate a separate report of repossessions. If the repossession
report is maintained under a manual recordkeeping system, the licensee
must maintain a current list of accounts in repossession. A manual
repossession report must be updated within a reasonable time from
the date of repossession. The repossession report must include the
retail buyer's name, account number, and date of repossession. If
accounts have been subsequently assigned, the assignment must be noted
in the repossession report as well as on the record of assigned accounts
as prescribed in subsection (e)(4) of this section.
(2) Required information. For a retail installment
sales transaction involving the repossession of the vehicle, the following
records must be maintained, unless otherwise specified:
(A) a condition report indicating the condition of
the collateral, if prepared by the licensee, the licensee's agent,
or any independent contractor hired to perform the repossession;
(B) any invoices or receipts for any reasonable and
authorized out-of-pocket expenses that are assessed to the buyer and
incurred in connection with the repossession or sequestration of the
vehicle including cost of storing, reconditioning, and reselling the
vehicle;
(C) for a vehicle disposed of in a public or private
sale as permitted by the Texas Business and Commerce Code, §9.610,
the following documents:
(i) one of the three following notices:
(I) for a transaction not involving consumer goods,
a copy of any Notification of Disposition of Collateral letter sent
to the retail buyer and other obligors as required by Texas Business
and Commerce Code, §9.613;
(II) for a transaction involving consumer goods, a
copy of any Notice of Our Plan to Sell Property as sent to the retail
buyer and other obligors as required by Texas Business and Commerce
Code, §9.614; or
(III) a copy of the waiver of the notice of intended
disposition prescribed by subclause (I) or (II) of this clause, as
applicable, signed by the retail buyer and other obligors after default;
(ii) copies of evidence of the type or manner of private
sale that was conducted. These records must show that the manner of
the disposition was commercially reasonable, such as circumstances
surrounding a dealer only auction, internet sale or other type of
private disposition;
(iii) copies of evidence of the type or manner of public
sale that was conducted. These records must show that the manner of
the disposition was commercially reasonable, such as documentation
of the date, place, manner of sale of the vehicle, and amounts received
for disposition of the vehicle;
(iv) the bill of sale showing the name and address
of the purchaser of the repossessed collateral and the purchase price
of the vehicle;
(v) for a disposition or sale of collateral creating
a surplus balance, a copy of the check representing the payment of
the surplus balance paid to the retail buyer or other person entitled
to the surplus;
(vi) for a disposition or sale of collateral resulting
in a surplus or deficiency, a copy of the explanation of calculation
of surplus or deficiency as required by Texas Business and Commerce
Code, §9.616, if applicable;
Cont'd... |
