Brought to You by HIADA Attorney - David Komiss
In 2002, representatives from the Consumer Office of the Credit Commissioner visited us at a monthly meeting of the HIADA. Their mission was to sign up dealers stating that their sole purpose was to keep track of all of the used car dealers in Texas. As I recall, the annual fee in 2002, for such registration, was $25.00 a year. I guess there is some truth that a crack in the dam will ultimately allow the flood waters to inundate.
The Office of the Consumer Credit Commission now keeps track of all dealers in the State of Texas and provides rules and regulations which must be abided by including but not limited to, regulating the content of retail installment contracts and other forms to make them easily readable by all residents of the State. The Commission runs periodic audits of dealer files to make sure that they comply with current law. Sometimes, it is hard to comply with current law as laws and regulations are constantly changed both at the State and Federal level. Occasionally, the OCCC will respond to complaints that are filed by unhappy customers.
The law requires that you must respond to the OCCC by supplying them with whatever materials they may request. Since their findings and requests are not criminal in nature an individual cannot invoke the Fifth Amendment against self incrimination. I have further found that if in violation, either by audit or customer complaint, is the first such violation with the OCCC, they are inclined to treat dealers fairly and in many cases, will require a solution that allows the dealer an opportunity to stay in business and enacts a reasonable penalty. Additionally, sending raw data to the OCCC in response to their request, without explanation and without trying to provide an easy understanding of what they are reviewing is not a good idea. Charts and graphs make their job easier and show an interest to cooperate with their department. One should always do the best they can to furnish all of the information requested at one time spreading information out over a period of days or weeks may cause an irritation that is not in the best interest of the dealer.
If you are in doubt, about how to proceed after receiving an audit request or how to respond to a complaint, it is advisable to contact an attorney. I am not trying to drum up business, but an attorney acts as a buffer between you and the government and allows you to consult with your own representative without having to make a decision on the spot or to respond with uncertainty.