| (I) for a retail installment sales transaction in which
the licensee issues a debt cancellation agreement, a complete copy
of the debt cancellation agreement provided to the retail buyer, documentation
of disbursement of the debt cancellation agreement fee to the retail
seller or a third-party administrator, any written instruction from
a holder to make a full or partial refund of the debt cancellation
agreement fee, and documentation of any 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 (7) 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.
(J) for a retail installment sales transaction in which
the licensee issues a certificate of coverage regarding ancillary
products issued by or through the licensee in connection with the
retail installment sales transaction, records of the ancillary products
(motor vehicle theft protection plans, service contracts, maintenance
agreements, identity recovery service contracts, etc.) including all
certificates of coverage.
(K) 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. §226.18;
(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.
(L) for a retail installment sales contract that has
an itemized charge for the inspection of a used motor vehicle, access
to a copy of the work order, inspection receipt, or other verifiable
evidence that reflects that the inspection was performed including
the date and cost of the inspection.
(M) 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.
(N) 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.
(O) 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.
(P) any conditional delivery agreement signed by the
retail buyer or provided to the retail buyer.
(3) 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.
(B) Electronic recordkeeping systems. If a licensee
is able to produce an assignment report containing the required information
provided in subparagraph (A) of this paragraph electronically without
any additional programming costs, the licensee must produce the report
upon request. If the licensee's software programs are unable to produce
an assignment report containing the required information provided
in subparagraph (A) of this paragraph, the licensee may maintain assignment
information for each individual retail installment sales transaction
in the retail installment sales transaction file. A licensee must
be able to access assignment information for a specific transaction
as requested by the commissioner's representative.
(C) Manual recordkeeping systems. If a licensee is
not able to produce an assignment report as provided in subparagraph
(B) of this paragraph, the licensee may maintain assignment information
for each individual retail installment sales transaction in the retail
installment sales transaction file. A licensee must be able to access
assignment information for a specific transaction as requested by
the commissioner's representative.
(4) General business and accounting records. General
business and accounting records concerning retail installment sales
transactions must be maintained. The licensee is not required to produce
information protected under the attorney-client privilege or work
product privilege. 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:
(A) Texas Comptroller of Public Accounts' Dealer Motor
Vehicle Inventory Tax Statement (Form 50-246); and
(B) Texas Comptroller of Public Accounts' Texas Motor
Vehicle Seller-Financed Sales Tax Report (Form 14-117).
(5) 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.
(6) Trade-in credit agreement records. Each licensee
that enters a trade-in credit agreement or provides a benefit in connection
with a trade-in credit agreement must:
(A) maintain a copy of any contractual liability reimbursement
policy related to the trade-in credit agreement, as required by Texas
Finance Code, §348.125(c); and
(B) 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, and the date of satisfaction or denial.
(7) 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 by the licensee,
whichever is later, or a different period of time if required by federal
law. For licensees who assign retail installment sales contracts,
the final entry may be the date of the assignment if the licensee
makes no other entries on the account after the assignment. 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.
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| Source Note: The provisions of this §84.707 adopted to be effective November 6, 2008, 33 TexReg 8922; amended to be effective November 5, 2009, 34 TexReg 7608; amended to be effective November 8, 2012, 37 TexReg 8780; amended to be effective September 7, 2017, 42 TexReg 4462; amended to be effective May 10, 2018, 43 TexReg 2747; amended to be effective December 31, 2020, 45 TexReg 9416; amended to be effective January 4, 2024, 48 TexReg 8332 |
