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OCCC Enforcement Action Roundup

The Office of Consumer Credit Commissioner frequently publishes accounts of enforcement actions it takes against dealers for violating state finance laws. These punishments can include administrative penalties, restitution, injunctions and license suspensions or revocations. In a new reoccurring blog, we will take a look recent enforcement actions to highlight how dealers can avoid OCCC auditors by explaining what NOT to do. In this post, we learn about a dealership with license troubles and another having issues with reports. 
 
No License, Big Problem for Austin Dealership

Excerpt from Case No. L17-130.  Dealer X applied for a motor vehicle sales finance license. During the course of processing the application, the OCCC discovered that Dealer X was engaging in motor vehicle financing. On September 6, 2016, and September 22, 2016, the OCCC requested additional information from Dealer X. Dealer X did not respond to the first request. On October 14, 2016, Dealer X responded to the second request but its response was incomplete. On January 12, 2017, the OCCC notified Dealer X that its application for a motor vehicle sales license had been denied. Dealer X failed to obtain a Chapter 348 license and continues to operate as a retail seller and to hold and collect on contracts in which Dealer X agrees to accept the cash price of motor vehicles in one or more deferred installments. The Commissioner has reasonable cause to believe that Dealer X is financing the sale of motor vehicles without a license, in violation of Section 348.501 of the Texas Finance Code. In order to resolve this matter, Dealer X agrees to pay an administrative penalty in the amount of $900.00.
 
Dallas Dealer Misses Deadline to File Annual Report

Excerpt from Case No. L18-00168.  Dealer Y is a regulated lender licensed by the OCCC under Chapter 342 of the Texas Finance Code.  Dealer Y operates under master file number 17403 at one licensed location, under license number 56814……. A regulated lender must file annual reports with the Consumer Credit Commissioner (“Commissioner”).  A regulated lender must file the required annual report by May 1 for the prior year's calendar loan activity on forms prescribed by the Commissioner and must comply with all instructions relating to submitting the report.  On May 25, 2016, the OCCC issued an Order to File Timely and Accurate Reports against Dealer Y for failing to timely file its 2015 annual report. Dealer y did not request a hearing on the Order and a Final Order was issued July 14, 2016. The Order required Dealer Y to timely file complete and accurate future annual reports.  Dealer Y did not file its 2017 annual report with the Commissioner by filing deadline of May 1, 2018. In correspondence dated May 8, 2018, the OCCC notified Dealer Y that its 2017 annual report had not been received and extended the deadline for filing to May 18, 2018.  As of the date of this Order, the OCCC has not received Dealer Y's 2017 annual report. Order IT IS ORDERED that Dealer Y: 1. pay an administrative penalty in the amount of $500.00. This penalty is calculated as $500.00 each for Dealer Y's one licensed location, within 30 days of service of this Order.

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