| (a) Applicability. The recordkeeping requirements of
this section apply to holders who are not retail sellers that service
or collect installments on retail installment sales contracts involving
ordinary vehicles. The recordkeeping requirements of this section
do not apply to motor vehicle retail installment sales transactions
involving commercial vehicles.
(b) Records required for each retail installment sales
transaction. Each licensee must maintain records with respect to the
licensee's compliance with Texas Finance Code, Chapter 348 for each
motor vehicle retail installment sales contract made, acquired, serviced,
or held under Chapter 348 and make those records available for examination.
(c) Recordkeeping systems. The records required by
this section may be maintained by using either a legible paper or
manual recordkeeping system, electronic recordkeeping system, optically
imaged recordkeeping system, or a combination of the preceding types
of systems, unless otherwise specified by statute or regulation. Licensees
may maintain records on one or more recordkeeping systems, so long
as the licensee is able to integrate records pertaining to an account
into one or more reports as required by this section. If federal law
requirements for record retention are different from the provisions
contained in this section, the federal law requirements prevail only
to the extent of the conflict with the provisions of this section.
(d) Record search requirements.
(1) Open retail installment sales transactions. A licensee
must be able to access or produce a list of all open retail installment
sales transactions. If the list of open transactions is accessed through
an electronic system, the licensee must be able to generate a separate
report of open transactions. Alternatively, a licensee may provide
a list containing open and closed retail installment sales transactions
as long as the open transactions are designated as "open."
(2) Alphabetical search. A licensee must be able to
access records in alphabetical order by retail buyer name for open
and closed transactions during the record retention period required
by subsection (e)(9) of this section. A licensee may comply with the
alphabetical requirement by providing the commissioner's representative
files by retail buyer name upon request by the commissioner's representative.
(e) Records required.
(1) Retail installment sales transaction report. Each
licensee must maintain records sufficient to produce a retail installment
sales transaction report that contains a listing of each Texas Finance
Code, Chapter 348 retail installment sales contract acquired by the
licensee. The report is only required to include those retail installment
sales contracts that are subject to the record retention period of
paragraph (9) of this subsection. The retail installment sales transaction
report can be maintained either as a paper record or may be generated
from an electronic system or systems so long as the licensee can integrate
the following information into a report. If the retail installment
sales transaction report is maintained under a manual recordkeeping
system, the retail installment sales transaction report must be updated
within a reasonable time from the date the contract is acquired. A
retail installment sales transaction report must contain the following
information:
(A) the date of contract (day, month, and year);
(B) the retail buyer's name(s);
(C) a method of identifying the vehicle, such as the
last six digits of the vehicle identification number or the stock
number; and
(D) the account number.
(2) Retail installment sales transaction file. A licensee
must maintain a paper or imaged copy of a retail installment sales
transaction file for each individual retail installment sales contract
or be able to produce the same information within a reasonable amount
of time. The retail installment sales transaction file must contain
documents which show the licensee's compliance with applicable law.
The required documents must show the licensee's compliance with Texas
Finance Code, Chapter 348 and would accordingly include applicable
state and federal laws and regulations, including the Truth in Lending
Act. If a substantially equivalent electronic record for any of the
following records exists, a paper copy of the record does not have
to be included in the retail installment sales transaction file if
the electronic record can be accessed upon request. The retail installment
sales transaction file must include copies of the following records
or documents, unless otherwise specified:
(A) for all retail installment sales transactions:
(i) the retail installment sales contract signed by
the retail buyer and the retail seller as required by Texas Finance
Code, §348.101;
(ii) the credit application and any other written or
recorded information used in evaluating the application;
(iii) the original certificate of title to the vehicle,
a certified copy of the negotiable certificate of title, or a copy
of the front of either the original or certified copy of the title;
and
(iv) any records applicable to the retail installment
transaction outlined by subparagraphs (B) - (J) of this paragraph.
(B) for a vehicle titled in Texas, a copy of the completed
Texas Department of Motor Vehicles'/Texas Comptroller of Public Accounts'
Application for Texas Certificate of Title (Form 130-U) signed by
the retail buyer and seller that was filed with the appropriate county
tax assessor-collector.
(C) for a retail installment sales transaction in which
insurance policies are issued by or through the licensee in connection
with the retail installment sales transaction, copies of the certificates
of insurance.
(D) for a retail installment sales transaction in which
the licensee issues or takes assignment of a debt cancellation agreement,
a complete copy of the debt cancellation agreement provided to the
retail buyer and any written instruction to another person to make
a full or partial refund of the debt cancellation agreement fee, and
any documentation that comes into the licensee's possession regarding
a refund provided upon cancellation or termination of the debt cancellation
agreement. As an alternative to maintaining a complete copy of the
debt cancellation agreement in the retail installment sales transaction
file, the licensee may maintain all of the following:
(i) in the retail installment sales transaction file,
a copy of any page of the debt cancellation agreement with a signature,
a transaction-specific term, the cost of the debt cancellation agreement,
or any blank space that has been filled in;
(ii) in the licensee's general business files, a complete
master copy of each debt cancellation agreement form used by the licensee
during the period described by paragraph (9) of this subsection;
(iii) in the licensee's general business files, policies
and procedures that show a verifiable method for ensuring that the
master copy of the debt cancellation agreement accurately reflects
the debt cancellation agreement used in each individual transaction.
(E) for a retail installment sales transaction involving
insurance claims for credit life, credit accident and health, credit
property, credit involuntary unemployment, collateral protection,
or credit gap insurance:
(i) if the licensee does not negotiate or transact
insurance claims on behalf of the retail buyer, records are not required
to be maintained under this subparagraph.
(ii) if the licensee negotiates or transacts insurance
claims on behalf of the retail buyer, supplemental insurance records,
to the extent received by the licensee, supporting the settlement
or denials of claims reported in the insurance loss records provided
by paragraph (6) of this subsection including:
(I) Credit life insurance claims. The supplemental
insurance records for credit life insurance claims must include the
death certificate or other written records relating to the death of
the retail buyer; proof of loss or claim form that discloses the amount
of indebtedness at the time of death; check copies or electronic payment
receipts that reflect the gross amount of the claim paid, including
the amount of insurance benefits paid to beneficiaries other than
the licensee which is in excess of the net amount necessary to pay
the indebtedness; and the amount that is paid to beneficiaries other
than the licensee.
(II) Credit accident and health insurance claims. The
supplemental insurance records for credit accident and health insurance
claims must include any written records relating to the disability,
including statements from the physician, employer, and retail buyer;
the proof of loss or claim form filed by the retail buyer; and copies
of the checks or electronic payment receipts reflecting disability
payments paid by the insurance carrier.
Cont'd... |
