| Rule Number: |
16P027 |
| Title: |
Vermont Disclosure Form - Amount to be Financed in a Motor Vehicle Retail Installment Contract. |
|
Type:
|
Standard |
|
Status:
|
Adopted |
| Agency: |
Department of Financial Regulation
|
| Legal Authority: |
8 V.S.A. § 15 and 9 V.S.A. § 2355(f)(1)(J) |
| Summary:
| The proposed rule modifies the Vermont Disclosure Form Relating to Amount Financed in a Motor Vehicle Retail Installment Contract required by 9 V.S.A. § 2355(f)(1)(J) ["Vermont Disclosure Form"] to clarify the calculation of "Cash Price" to ensure consistency with federal law. Federal law allows the Cash Price to include: services related to the sale; service contracts; and taxes and fees for license, title, and registration. Department of Financial Regulation's (DFR) current guidance, found in Banking Bulletin #28, does not allow these items to be included in the Cash Price. The proposed rule clarifies that a creditor may calculate the Cash Price on the motor vehicle retail installment contract consistent with federal law. However, to fulfill the purpose of the Vermont Disclosure Form, the optional items that may be included under federal law must be deducted from the Cash Price to arrive at the amount used in the negative equity calculation on the Vermont Disclosure Form. |
| Persons Affected:
| Borrowers, automobile dealers, sales finance companies, financial institutions, the Department of Motor Vehicles (DMV), the Office of the Attorney General. |
| Economic Impact:
| Dealers may incur costs to reprogram software to accommodate the revised Vermont Disclosure Form. DMV costs include the cost to revise the form and the potential for obsolete inventory of the old forms. DFR will work with DMV on the transition to the new Vermont Disclosure Form to minimize cost. |
| Posting date: |
Jun 29,2016 |
