| (III) Credit involuntary unemployment insurance claims.
The supplemental insurance records for credit involuntary unemployment
insurance claims must include any written document relating to the
termination, layoff, or dismissal of the retail buyer; the proof of
loss or claim form filed by the retail buyer; copies of the checks
or electronic payment receipts reflecting the payment of the claim
by the insurance carrier; and any other pertinent written record relating
to the involuntary unemployment insurance claim.
(IV) Collateral protection insurance claims. The supplemental
insurance records for collateral protection insurance claims must
include the law enforcement report, fire department report, or other
written record reflecting the loss or destruction of any covered motor
vehicle; the proof of loss or claim form filed by the retail buyer;
copies of the checks or electronic payment receipts reflecting the
payment of the claim by the insurance carrier; and any other pertinent
written record relating to the collateral protection insurance claim.
(V) Credit gap insurance claims. The supplemental insurance
records for credit gap insurance claims must include the gap insurance
claim form; proof of loss and settlement check from the retail buyer's
basic comprehensive, collision, or uninsured/underinsured policy or
other parties' liability insurance policy for the settlement of the
insured total loss of the motor vehicle; documents that provide verification
of the retail buyer's primary insurance deductible; if the accident
was investigated by a law enforcement officer, a copy of the offense
or police report filed in connection with the total loss of the motor
vehicle; if the accident was not investigated by a law enforcement
officer, a copy of the Texas Department of Public Safety's "Crash
Report" (Form CR-2) filed in connection with the total loss of the
motor vehicle; and copies of the checks reflecting the settlement
amount paid by the licensee for the gap insurance claim.
(F) for a retail installment sales transaction involving
the cancellation of a full or partial balance under a debt cancellation
agreement for total loss or theft of an ordinary vehicle, or involving
the cancellation or termination of a debt cancellation agreement,
the licensee must:
(i) maintain any documents that come into its possession
relating to the creation, processing, resolution, cancellation, or
termination of a debt cancellation agreement; and
(ii) upon request of the agency, cooperate in requesting
and obtaining access to the type of documents described in clause
(i) of this subparagraph that are not in its possession.
(G) 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.
(H) 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).
(I) for a retail installment sales transaction involving
repossession, the records required by subsection (f) of this section.
(J) 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).
(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 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 report.
Cont'd... |
