| (III) any records relating to the denial of the cancellation
of the balance under the debt cancellation agreement for total loss
or theft of any ordinary vehicle.
(N) for a retail installment sales transaction where
separate disclosures are required by federal or state law including
the following:
(i) a transaction where disclosures required by the
Truth in Lending Act are not incorporated into the text of the retail
installment sales contract and the credit was extended for primarily
for personal, family, or household purposes, a copy of the Truth in
Lending statement required by Regulation Z, Truth in Lending, 12 C.F.R. §1026.18;
(ii) a transaction involving a cosigner, the notice
to cosigner required by the Federal Trade Commission's Credit Practices
Trade regulation, 16 C.F.R. §444.3.
(O) for a retail installment sales transaction that
has been repaid in full, evidence of the discharge or release of lien
as prescribed by 43 TAC §217.106 (relating to Discharge of Lien).
(P) for a retail installment sales transaction involving
a repossession, the records required by subsection (f) of this section.
(Q) for a retail installment sales transaction in which
the licensee agrees to defer all or part of one or more payments:
(i) a copy of any written deferment agreement; and
(ii) any written notice to the retail buyer regarding
a deferment under Texas Finance Code, §348.114(c).
(R) for a retail installment sales transaction involving
the sale of a trade-in credit agreement under Texas Finance Code, §348.125:
(i) a copy of the trade-in credit agreement and any
written notice or disclosure provided to the retail buyer;
(ii) evidence of the contractual liability reimbursement
policy in effect at the time of the trade-in credit agreement, as
required by Texas Finance Code, §348.125(c); and
(iii) documentation of any refund provided upon cancellation
of a trade-in credit agreement.
(S) for a retail installment sales transaction in which
a retail buyer requests or receives a benefit under a trade-in credit
agreement under Texas Finance Code, §348.125:
(i) a copy of the trade-in credit agreement;
(ii) evidence of the amount of any credit applied under
the trade-in credit agreement; and
(iii) any documentation used to process a claim, including:
(I) any proof of insurance settlement documents obtained
from the retail buyer;
(II) any accident record or vehicle condition report
obtained to process a claim; and
(III) any supplemental claim records supporting the
approval or denial of the claim.
(T) for a retail installment sales transaction in which
a retail buyer requests or receives a benefit under a depreciation
benefit optional member program under Texas Occupations Code, §1304.003(a)(2)(C):
(i) evidence of the amount of any credit applied under
the depreciation benefit optional member program; and
(ii) any documentation obtained by the licensee to
process the benefit.
(U) any conditional delivery agreement signed by the
retail buyer or provided to the retail buyer.
(3) Account record for each retail installment sales
contract (including payment and collection contact history). A separate
paper, or an electronic record, must be maintained covering each retail
installment sales contract. The paper or electronic account record
must be readily available by reference to either a retail buyer's
name or account number.
(A) Required information. The account record for each
retail installment sales contract must contain at least the following
information, unless stated otherwise:
(i) account number as recorded in the retail installment
sales transaction report;
(ii) date of contract;
(iii) name and address of retail buyer;
(iv) payment history information:
(I) itemized payment entries showing date payment received;
dual postings are acceptable if date of posting is other than date
of receipt;
(II) for a transaction using the true daily earnings
method, if requested during an examination or investigation, a breakdown
for each payment showing the amount applied toward principal, time
price differential, late charges, and any other charges;
(III) if requested during an examination or investigation,
a payoff amount that denotes amounts applied to principal, time price
differential, default, deferment, or other authorized charges;
(v) for a retail installment sales contract where the
licensee receives or issues a refund of insurance charges, debt cancellation
agreements, or authorized ancillary products, a licensee is responsible
for maintaining sufficient documentation of any refund including final
entries and is also responsible for providing refunds to the retail
buyer or correctly applying refunds to the retail buyer's account.
Refund amounts must be itemized to show:
(I) time price differential refunded, if any;
(II) the amount of any insurance charges refunded;
(III) the amount of any debt cancellation agreement
fees refunded;
(IV) the amount of any authorized ancillary products
charges refunded;
(vi) collection contact history, including a written
record of:
(I) all collection contacts made by a licensee with
the retail buyer or any other person in connection with the collection
of amounts due under a motor vehicle retail installment sales contract;
(II) all collection contacts made by the retail buyer
with the licensee in connection with the collection of amounts due
under a motor vehicle retail installment sales contract;
(III) for the collection contacts in subclauses (I)
and (II) of this clause, the written record must include the date,
method of contact, contacted party, person initiating the contact,
and a summary of the contact;
(IV) copies of individual collection notices or letters
or references to standard collection letters sent to the retail buyer.
(B) Recommended information. In addition to the required
information under subparagraph (A) of this paragraph, it is recommended
that the account record for each retail installment sales contract
contain the following information:
(i) retail installment sales contract payment schedule
and terms itemized to show:
(I) number of installments;
(II) due date of installments;
(III) amount of each installment; and
(IV) maturity date;
(ii) telephone number of retail buyer;
(iii) names and addresses of co-retail buyer or other
obligors, if any;
(iv) amount financed;
(v) total time price differential charge;
(vi) total of payments;
(vii) amount of premium charges for insurance products;
(viii) amount of fees charged for debt cancellation
agreements.
(C) Corrective entries. A licensee may make corrective
entries to the account record for each retail installment sales contract
if the corrective entry is justified. A licensee must maintain the
reason and supporting documentation for each corrective entry made
to the account record. The reason for the corrective entry may be
recorded in the collection contact history of the account record.
The supporting documentation justifying the corrective entry can be
maintained in the individual account record for each retail installment
sales contract or properly stored and indexed in a licensee's optically
imaged recordkeeping system. If a licensee manually maintains the
account record, the licensee must properly correct an improper entry
by drawing a single line through the improper entry and entering the
correct information above or below the improper entry. No erasures
or other obliterations may be made on the payments received or collection
contact history section of the manual account record for each retail
installment sales contract.
(4) Assignment information.
(A) Required information. Assignment information must
cover 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 information 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.
Cont'd... |
