Banking

Top Keyword for banking - used in url generation

DOXO, Inc.

Order
Tuesday, July 18, 2017
Docket No. 17-014-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket_17_014_B_DOXO.pdf

STATE OF VERMONT
DEPARTMENT OF FINANCIAL REGULATION
IN RE:)
)
DOXO, INC. )
NMLS # 1513565)DOCKET NO. 17-014-B 

STIPULATION AND CONSENT ORDER
The Banking Division of the Vermont Department of Financial Regulation (the “Department”) and Doxo, Inc. (“Doxo” or “Respondent”) hereby stipulate and agree as follows:
Pursuant to 8 V.S.A. Chapters 1 and 79, the Commissioner of the Vermont Department of Financial Regulation is charged with administering and enforcing Vermont law as it pertains to money transmitters in the State of Vermont.
Doxo, Inc., is a Delaware corporation with its principal place of business at 2025 First Avenue, Suite 270, Seattle, WA 98121.
Doxo acknowledges and admits the jurisdiction of the Commissioner over the subject matter of this Stipulation and Consent Order set forth herein.
Doxo provides a bill paying service for billers to deliver bills electronically to clients, and for clients to pay bills by transferring money from client accounts to billers.  Clients can sign up using Doxo’s mobile app or on the Doxo website and can link all their bills and accounts to organize payments through their Doxo account.
In 2013, Doxo was contractually-appointed as an agent by Noventis, Inc., formerly known as PreCash, Inc., (“Noventis”) a Vermont licensed money transmitter.  A June 16, 2015 amendment to Doxo’s contract, read: “Vermont. Appointment. PreCash (as “licensee) hereby appoints Agent (as “authorized delegate”) with authority to engage in money transmission on behalf of licensee.”
Vermont’s Money Services Act, 8 V.S.A. Chapter 79 limits an “authorized delegate” of a licensee to a person located in Vermont. 8 V.S.A. § 2500(2).
In mid-2016, Noventis notified Doxo that it could not serve as an authorized delegate in Vermont because it did not have a physical location in Vermont.
Following this notification by Noventis, on August 26, 2016, Doxo submitted a filing through the Nationwide Multistate Licensing System (“NMLS”) to obtain a Vermont money transmitter license, and immediately ceased all enterprise sales activity, promotional activity and the addition of new billers in Vermont.  Doxo believed at the time that the best and least disruptive outcome for users of the Doxo service in Vermont was to continue to allow users to pay their bills through the Doxo service, and that the immediate application for a license following notification by Noventis would be considered appropriate remedy.  The Department did not authorize Doxo to continue to operate while the application was pending.
The Department asserts that Doxo violated Vermont’s money transmitter laws by engaging in money transmission without a license, in that Doxo did not qualify as an authorized delegate because it was not “located in Vermont” per 8 V.S.A. § 2500(2) and was operating without a physical location within the state.  Doxo asserts that, at the time, it believed it was acting as an authorized delegate of a Vermont transmitter licensee.    As part of this Stipulation and Consent Order, Doxo neither admits nor denies the Department’s allegation that Doxo violated Vermont’s money transmitter laws by engaging in money transmission without a license or authorization under Title 8, Chapter 79.
Based on information provided by Doxo, since June 1, 2013, the Department finds that prior to obtaining a license in Vermont, in aggregate, Doxo transmitted to, from or among Vermont customers a total of $316,374.29 on 1,808 transactions, which includes $9,502.36 in fees. Doxo certifies that the above constitutes the total of the business it conducted and fees it earned in Vermont since June 2013.
At all times, Respondent has cooperated with the Department.
The parties wish to resolve this matter without administrative or judicial proceedings.
Respondent and the Department expressly agree to enter into this Stipulation and Consent Order in full and complete resolution of the alleged violations described herein.
Respondent agrees to pay $8,686.19 to the Department of Financial Regulation; representing an administrative penalty in the amount of $2,500.00 and disgorgement of fees earned since July 1, 2016 in the amount of $6,186.19. This shall be paid within ten (10) days of the execution of this Stipulation and Consent Order.  
Respondent shall maintain a minimum net worth of no less than $100,000 at all times, as required by 8 V.S.A §2510.  Doxo has provided letters from investors verifying their commitment to support Doxo.  In the event that either of these investors should withdraw their support, Respondent must notify the Department within 10 days. 
Respondent shall not, either directly or through its affiliates, engage in the business of money transmission in Vermont without a Vermont money transmitter license.
This Stipulation and Consent Order shall not prevent any person from pursuing any claim he or she may have against Respondent, nor shall it be understood as determining whether any such claim may or may not exist in law or equity. Nothing contained herein shall be deemed an admission by Respondent.
Nothing contained in this Stipulation and Consent Order shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving Respondent and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.
The Department and Respondent are entering into this Stipulation and Consent Order to settle a dispute between them and both agree that this Stipulation and Consent Order does not constitute an adjudication of a violation of statute or regulation.
Respondent hereby waives its statutory right to notice and a hearing before the Commissioner of the Department, or his designated appointee.
Respondent acknowledges and agrees that this stipulation is entered into freely and voluntarily and that except as set forth herein, no promise was made to induce the Respondent to enter into it. Respondent acknowledges its understanding of and agrees to all terms, conditions, and obligations contained in this Stipulation and Consent Order.
The terms set forth in this Stipulation and Consent Order represent the complete agreement between the parties as to its subject matter.
The undersigned representative of Respondent affirms that he or she has taken all necessary steps to obtain the authority to bind Respondent to the obligations stated herein and has the authority to bind Respondent to the obligations stated herein.

DOXO, INC.
By: ____________________________________________    Date: __________________

Print name & Title:  
_____________________________________________________________________________

ACCEPTED BY:
___________________________________________________    _______________
Cynthia Stuart, Deputy CommissionerDate
Banking Division, Vermont Department of Financial Regulation



CONSENT ORDER

1.  The stipulated facts, terms, and provisions of the Stipulation are incorporated by reference herein.
2.  Jurisdiction in this matter is established pursuant to Chapters 1 and 79 of Title 8.
3.  Pursuant to the Stipulation, Respondents consent to the entry of this Consent Order.
4.  Respondent shall comply with all agreements, stipulations, and undertakings as recited above.


Dated at Montpelier, Vermont this ____ day of July 2017.





_____________________________________________________
Michael S. Pieciak, Commissioner
Vermont Department of Financial Regulation

Order: Transition Period for Money Transmitters To Implement Receipt Requirements

Order
Thursday, June 29, 2017
Docket No. 17-021-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket_17_021_B_MSA_Transition_Order_2017.pdf

 

STATE OF VERMONT 
DEPARTMENT OF FINANCIAL REGULATION

 

In Re:)

)

8 V.S.A. Chapter 79 – Money Transmitters )Docket No. 17-021-B

Receipts Transition Period)

 

 

ORDER

TRANSITION PERIOD FOR MONEY TRANMITTERS

TO IMPLEMENT RECEIPT REQUIREMENTS

 

Background

  1. Section 13, Act 22 of 2017 becomes effective on July 1, 2017.

  2. Act 22 amended 8 V.S.A. Chapter 79 and requires every money transmitter licensee and its authorized delegates to provide a receipt to the customer that clearly states the name, address, and telephone number of the licensee; the amount of money presented for transmission; and the total of any fees charged by the licensee. 8 V.S.A. § 2511(a).

  3. The Department is aware that the money services industry is built upon third party relationships such as its authorized delegates and clients that play varying roles in the completion of a transaction.

  4. The Department is aware that money transmission may be in the form of a pre-packaged product that requires design, production and distribution; or is dependent upon software technology.  In such situations sufficient lead time is required to implement change.

  5. The Department does not want to disrupt money transmission services while licensees and their authorized delegates work towards compliance with the Section 13 of Act 22.

  6. Pursuant to 8 V.S.A. § 15 the Commissioner may issue such orders as shall be necessary to the administration of title 8 V.S.A. and to carry out the purposes of such title.

  1. Pursuant to 8 V.S.A. § 10, the Commissioner is directed to supervise organizations that provide financial services and products in a manner that: ensures their solvency, liquidity, stability, and efficiency; encourages the development, expansion, and availability of financial services and products; and protects consumers.

  2. The Commissioner finds that providing licensees and their authorized delegates some additional limited time to adjust to the changes resulting from Act 22 without creating undue hardship for licensees, their authorized delegates, clients, or customers is necessary and appropriate to the administration of 8 V.S.A. Chapter 79 and to carrying out the purposes of Chapter 79 by providing stability for money transmitters and ensuring the availability of money transmission services to Vermonters

Order

It is hereby ordered that:

  1. Prior to September 30, 2017, a licensee who provides documentation demonstrating that the licensee initiated action to comply with 8 V.S.A. § 2511(a) will not be penalized for failure to comply with the receipt requirements of 8 V.S.A. § 2511(a).

  2. On and after September 30, 2017, all licensees and their authorized delegates must provide a receipt to the customer in full accordance with 8 V.S.A. § 2511(a).

Dated at Montpelier, Vermont this ____day of June 2017.

 

______________________________________

Michael S. Pieciak, Commissioner

Vermont Department of Financial Regulation

 

Money Transmitter Receipts Guidance & Transition Period

Bulletin
Thursday, June 29, 2017
Banking Bulletin #47
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Banking_Bulletin_%2347_Receipt_Guidance_Transition_Period.pdf

VERMONT DEPARTMENT OF FINANCIAL REGULATION
DIVISION OF BANKING

Banking Bulletin #47

Money Transmitter Receipts Guidance & Transition Period

Effective July 1, 2017, Act 22 amended the Vermont Money Services Act, 8 V.S.A. Chapter 79, to require every money transmitter licensee and its authorized delegates to provide a receipt to the customer.  The receipt must clearly state the name, address, and telephone number of the licensee; the amount of money presented for transmission; and the total of any fees charged by the licensee. 8 V.S.A. § 2511(a).

This bulletin provides guidance regarding what documentation must be provided to consumers to comply with the receipt requirement.

Guidance
 
For general money transmission transactions, the receipt must include the licensee’s name, physical or mailing address, and phone number in addition to the fee and exchange rate disclosure information.  A website address may be used in lieu of a physical or mailing address on the receipt, provided the licensee’s physical or mailing address is readily available on the website.

For stored value transactions, the receipt may include the name, address, and telephone number of the authorized delegate, provided that the licensee’s contact information is provided in or on the stored value device packaging or on the stored value device itself.

For bill payment transactions, the receipt may include the name, address, and telephone number of the authorized delegate, provided the licensee’s name accompanies the authorized delegate's information.

For payroll services performed pursuant to a written contract on behalf of an employer, when the money transmission or currency exchange is an ancillary service in a suite of services that includes one or more of the following: 

facilitates the payment of payroll taxes to state and federal agencies;
makes payments relating to employee benefit plans;
makes distributions of other authorized deductions from an employees' wages or salaries; or
transmits other funds on behalf of an employer in connection with transactions related to employees,
the contract and periodic settlement reports between the employer and the licensee may be substituted for the employer’s receipt.

For payment processing, clearing, or settlement services in connection with wire transfers, credit card transactions, debit card transactions, prepaid access transactions, automated clearinghouse transfers, or similar funds transfers, performed pursuant to a written contract with a merchant or third party, and for which the licensee has no control over receipts issued by merchants or other parties having interactions with the consumer, the written contract and periodic settlement reports between the merchant or third party and the licensee may be substituted for the merchant’s or third party’s receipt. 

For agent payee transactions performed pursuant to a written contract with a payee that  (i) facilitate payment for goods or services (not including money transmission itself) or payment of bills through a clearance and settlement process, and (ii) provide that payment to the licensee or its authorized delegate satisfies the payor's obligation to the payee, the written contract and periodic settlement reports between the payee and the licensee may be substituted for the payee’s receipt provided the payor receives confirmation of payment containing the payee’s contact information.

Transition Period
Based on the circumstances and the nature of the money transmission market, providing some additional time for licensees and authorized delegates to comply with the receipt requirement of Act 22, without creating an undue hardship for licensees, authorized delegates, or their clients, is necessary and appropriate to the administration of 8 V.S.A. Chapter 79.  See 8 V.S.A. § 15.  The attached order provides for a limited transition period for licensees and authorized delegates to comply with the receipt requirement of the Act, provided there is written documentation demonstrating that actions have been taken to initiate compliance on or before July 1, 2017, such as:
Stock inventory, design, cost and lead time required to replace stock, and placement of order for new stock.

Software specifications, pipeline for software implementation, request for software development and implementation.

___________________________________________________________
Michael S. Pieciak, CommissionerDate
Vermont Department of Financial Regulation

Motor Vehicle Retail Installment Sales Finance Act Guidance

Bulletin
Monday, June 19, 2017
Banking Bulletin #46
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Banking_Bulletin_%2346.pdf

VERMONT DEPARTMENT OF FINANCIAL REGULATION

DIVISION OF BANKING

Banking Bulletin #46

Motor Vehicle Retail Installment Sales Finance Act Guidance

This Bulletin clarifies what constitutes a “motor vehicle” under the Motor Vehicle Retail Installment Sales Finance Act (“MVRISFA”), 9 V.S.A. Chapter 59, and the Retail Installment Sales Act, 9 V.S.A. Chapter 61. Chapters 59 and 61 both regulate retail installment sales contracts. Chapter 59 applies to motor vehicle retail installment contracts while Chapter 61 applies to retail installment contracts for other consumer goods. The broad definition of motor vehicle under MVRISFA has created uncertainty as to which chapter applies to various types of mechanized equipment, specifically ATVs, snowmobiles, garden tractors, and garden trailers.

Each chapter defines the term “motor vehicle,” though the definitions differ. The definitions are as follows:

Chapter 59, MVRISFA:

‘Motor vehicle’ means and is limited to the following:

(A) All vehicles propelled or drawn by power other than muscular power, except when two or more such vehicles are purchased at the same time;

(B) Trailers and semi-trailers, as defined in 23 V.S.A. § 4 (40), except when two or more such trailers or semi-trailers are purchased at the same time.

(C) Mobile home as defined in 10 V.S.A. § 6201.”

Chapter 61, Retail Installment Sales Act:

“Motor vehicle” or “vehicle” means and is limited to any automobile, mobile home, motorcycle, truck, truck-tractor, trailer, semi-trailer, and bus designed and used primarily to transport persons or property on a public highway, excepting however any boat trailer, any vehicle propelled or drawn exclusively by muscular power or which is designed to run only on rails or tracks.” (emphasis added).

When read together, the definitions in Chapters 59 and 61 identify a distinguishing characteristic —whether a vehicle is designed to be used primarily to transport persons or property on a public highway.

When viewed in this context, vehicles that are not designed to be used primarily to transport persons or property on public highways, such as snowmobiles, ATVs, garden tractors, and garden trailers are not considered to be motor vehicles under Chapter 59. Therefore, they are “goods” and are regulated by Chapter 61.

6/19/17

Michael S. Pieciak, Commissioner Date

Vermont Department of Financial Regulation

Glenview Auto Loan Fund LLC—Amendment to May 26, 2017 Cease and Desist Order

Order
Friday, June 16, 2017
Docket No. 17-015-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket_17_015_B_Amendment_to_C%26D.pdf

In re Glenview Auto Loan Fund LLC 17-015-B

 

 

 

AMENDMENT TO CEASE AND DESIST ORDER

 

This Amendment follows communications between Glenview Auto Loan Fund LLC (Glenview) and the Department of Financial Regulation (the Department) and the receipt by the Department of certain information requested from Glenview. The Cease and Desist Order dated May 26, 2017 (the Cease and Desist Order) was based on the Banking Division’s Motion pursuant to 8 V.S.A. Sections 2210(a)(4), 2210(b), and 2210(c) for an order requiring Glenview Auto Loan Fund LLC (Glenview) to cease and desist from any further activity as a sales finance company within the meaning of 8 V.S.A. Section 2200(29) pending further order of the Commissioner. Finding good reason therefor, the Commissioner hereby amends the Cease and Desist Order as follows:

 

ORDER

 

A. Glenview may answer telephonic and other inquiries by consumers regarding the status of their loans, the amount due or other questions regarding the retail installment sales contracts.

B. Glenview may continue to passively receive payments on the terms set forth in the retail installment sales contracts, except that Glenview shall not collect late fees which accrued from January 2017 through the date Glenview becomes licensed as a sales finance company in Vermont.

C. Glenview may send one letter to each consumer, in form and substance approved by the Department, advising the consumer that Glenview has purchased the retail installment sales contracts and directing the consumer as to how and where to make payments. Glenview may create one form of letter for consumers with autopay arrangements and another form of letter for those have not set up autopay arrangements.

D. Within 30 days of the date of this Amendment, Glenview shall either become licensed as a sales company in Vermont or sell/transfer all of its not retail installment sales contracts to a licensed sales finance company.

In all other respects, the Cease and Desist Order remains in full force and effect.

 

This Amendment is entered without prejudice to the rights of the state of Vermont to initiate any further proceedings it deems appropriate in light of Glenview’s business activity in Vermont, including for civil or administrative penalties and/or permanent injunctive or other equitable relief.

 

 

Dated at Montpelier, Vermont this __16th____ day of June 2017.

 

 

 

 

_____________________________

Michael S. Pieciak, Commissioner

Vermont Department of Financial Regulation

 

ASSENTED TO:

Glenview Auto Loan Fund LLC

 

By:______________________ Date:___________________________

State Regulatory Registry LLC and Nationwide Multistate Licensing System

Order
Monday, June 5, 2017
Docket No. 17-017-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket_17_017_B_NMLS_Order.pdf

STATE OF VERMONT
DEPARTMENT OF FINANCIAL REGULATION

IN THE MATTER OF:)
)DOCKET NO. 17-017-B
STATE REGULATORY REGISTRY )
LLC and NATIONWIDE )
MULTISTATE LICENSING SYSTEM)
)

ORDER EXEMPTING STATE REGULATORY REGISTRY LLC FROM LICENSURE UNDER THE VERMONT MONEY SERVICES ACT
WHEREAS, the Commissioner of the Vermont Department of Financial Regulation, pursuant to 8 V.S.A. chapters 1 and 79 (the Vermont Money Services Act), is charged with administering and enforcing Vermont law as it pertains to money transmitters in the State of Vermont; and
WHEREAS, the Vermont Money Services Act, defines money transmission as receiving money or monetary value for transmission to a location within or outside of the United States; and
WHEREAS, the State Regulatory Registry LLC (SRR), a wholly owned subsidiary of the Conference of State Bank Supervisors (CSBS), owns and operates the Nationwide Multistate Licensing System (NMLS); and 
WHEREAS, CSBS membership is comprised of state banking regulators, including Vermont and all other states, American Samoa, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands; and
WHEREAS, the voting members of the SRR Board of Managers consist solely of state regulators, such as Commissioners, Deputy Commissioners, and similar state officials from various state financial regulatory departments; and 
WHEREAS, NMLS, is a web-based system designed to promote federal and state uniformity and coordination in licensing, supervision and regulation of non-depository and mortgage industries and to enhance consumer protection; and
WHEREAS, SRR through NMLS performs payment processing and money transmission functions to facilitate the payment of fees, and other duly authorized payments, due to regulatory agencies; and 
WHEREAS, SRR has requested confirmation from the Vermont Department of Financial Regulation that the services it provides are not subject to licensure under the Vermont Money Services Act; and
WHEREAS, the Commissioner, pursuant to 8 V.S.A. §2501(b), may issue an order exempting any person from licensure as a money transmitter when such person is performing services for the benefit of the United States or for the benefit of any state; and
WHEREAS, SRR facilitates the transmission of regulatory filings and collects filing fees through NMLS from applicants and licensees on behalf of the member states, including Vermont, pursuant to a contractual agreement with each member state; and
WHEREAS, the Vermont Banking Division requires that regulatory filings and fees be submitted via NMLS; and
WHEREAS, SRR provides a valuable service for Vermont by operating and providing such services through NMLS in a professional and effective manner; and 
WHEREAS, the Commissioner finds, based upon the above, that SRR’s money transmission activities through NMLS are performed for the benefit of CSBS and its member states, including Vermont, and SRR should be exempted from licensure as a money transmitter in Vermont pursuant to 8 V.S.A. §2501(b).

NOW THEREFORE, IT IS HEREBY ORDERED THAT:
SRR is exempt from licensure as a money transmitter because SRR is performing money transmission services for the benefit of the State of Vermont, subject to the conditions that:
SRR shall operate under the terms of a contractual agreement with Vermont regarding NMLS and its money transmission activities; and
SRR shall notify the Commissioner of any material changes to the operation of NMLS or to any other practices, policies or procedures pertaining to money transmission activities.

BY ORDER OF THE COMMISSIONER
Entered at Montpelier, Vermont, this ________ day of June 2017.

______________________________________________________
Michael S. Pieciak, Commissioner
Vermont Department of Financial Regulation

Glenview Auto Loan Fund LLC

Order
Friday, May 26, 2017
Docket No. 17-015-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Genview_C%26D_Order_May_2017.pdf

In re Glenview Auto Loan Fund LLC 17-015-B

 

 

 

EX PARTE ORDER TO CEASE AND DESIST

 

 

Based on the Motion of Banking Division of the Department of Financial Regulation (“the Department”), pursuant to 8 V.S.A. Sections 2210(a)(4), 2210(b), and 2210(c ) for an ex parte order requiring Glenview Auto Loan Fund LLC (Glenview) to cease and desist from any further activity as a sales finance company within the meaning of 8 V.S.A. Section 2200(26), including any further purchase of installment sales contracts, any further collection activity on existing installment sales contracts and any further contact with customers in Vermont, pending further order of the Commissioner, and finding good reason therefor, the Commissioner hereby renders the following Findings of Fact and Conclusions of Law and enters the following Order:

 

I. FINDINGS OF FACT

 

1. Glenview Auto Loan Fund LLC (Glenview) is a limited liability company organized under the

laws of Illinois with a principal place of business at 3750 North Lakeshore Drive, Apt 15E,

Chicago, Illinois, engaged in the business, inter alia, of retail installment sales financing.

2. On or about May 10, 2017, the Department received a consumer complaint from Malinda

Gallagher alleging that a representative of Glenview had contacted her to demand payment on the installment sales contract for an automobile and to make arrangements for Automated Clearinghouse (ACH) installment payments from the customer’s account. The consumer further stated that she had purchased her vehicle from Rod’s Used Cars, had not been made aware of any sale of the retail installment sales contract, and had received no documentation

verifying a transfer of the vehicle title to Glenview. She also expressed concern about her ability to verify the outstanding balance remaining on her contract.

3. After receiving the customer complaint, the Department investigated the customer’s

complaint.

4. The Department discovered that, on or about July 3, 2015, Glenview bought from Rod’s Used

Cars of St. Johnsbury, Vermont at least five retail installment sales contracts, including the contract involving Ms. Gallagher, covering the financing of used vehicle purchases by Vermont consumers

5. On or about May 11, 2017, the Department wrote to Glenview requesting detailed

documentation of all Vermont retail installment sales contracts purchased and requesting that Glenview refrain from any further purchase of retail installment sales contracts in Vermont until it can provide evidence of compliance with or exemption from Vermont statutes

6. On or about May 11, 2017, Glenview representative Kevin Latimer called the Banking

Division of the Department and spoke with Sue Clark, Regulatory & Consumer Affairs Director. Mr. Latimer admitted Glenview had purchased retail installment sales contracts in Vermont and that Glenview was not licensed as a sales finance company in Vermont.

7. Glenview is in the business of purchasing or otherwise acquiring retail installment contracts.

8. Glenview is not licensed in Vermont as a sales finance company.

9. On or about May 17, 2017, Ms. Gallagher reported that after making the complaint to the

Department, she had received a telephone message from Mr. Latimer requesting updates on her “antics” with the Department. She expressed concern that Glenview had acted unprofessionally and could be trying to intimidate her as a result of her complaint to the Department.

10. Glenview may have purchased additional retail installment contracts, either from Rod’s or

otherwise, to which Vermont customers are parties.

11. Glenview may be continuing to act as a sales finance company in Vermont and may be

engaged in further collection activities involving communications with Vermont customers.

 

12. Glenview’s interaction with Ms. Gallagher appears to be designed to deter her from

communicating with or complaining to state authorities about Glenview. It also raises the risk of such inappropriate conduct being directed by Glenview to other Vermont consumers.

13. Given Glenview’s unlawful conduct in operating as a sale finance company in Vermont

without a license, its specific intimidating conduct toward Ms. Gallagher for making a complaint to state authorities about Glenview, and the risk to other Vermont consumers, the protection of public welfare (financial health and welfare) warrants issuance of an emergency cease and desist order to Glenview pending notice to the company of its opportunity to contest the order.

 

II. CONCLUSIONS OF LAW

 

14. Pursuant to 8 V.S.A. Section 2200(26), a sales finance company is a person engaged in the

business of purchasing or otherwise acquiring retail installment sales contracts.

15. The contracts Glenview acquired from Rod’s Used Cars are retail installment sales contracts

within the meaning of 9 V.S.A. Sections 2351(5) and 2401(7). Glenview is in the business of purchasing or otherwise acquiring retail installment contracts.

16. Glenview has been acting as a sales finance company within the meaning 8 V.S.A. Section

2200(26).

17. Glenview has violated 8 V.S.A. Section 2201(4) by continuing to act as a sales finance

company in Vermont without first obtaining a license from the Commissioner.

18. Glenview has not obtained a license and is thus acting in violation of 8 V.S.A. Section

2201(4) when it purchases installment sales contracts or engages in collection activity related to those contracts in Vermont.

 

III. ORDER

 

Pursuant to 8 V.S.A. Sections 2210(a)(2), 2210(b) and 2210(c), IT IS HEREBY ORDERED:

 

A. Glenview Auto Loan Fund LLC shall cease and desist from acting as a sales finance company in Vermont and shall refrain from any further purchase of Vermont retail installment sales contracts and from any collection activity or communications with customers in connection with retail installment sales contracts which have already been purchased in Vermont until properly licensed as a sales finance company in Vermont or until further order of the Commissioner.

B. Glenview Auto Loan Fund LLC, through its members, officers, employees and agents, shall not withhold, destroy, mutilate or by any means falsify any documentary material relevant to its activities as a sales finance company in Vermont.

 

Dated at Montpelier, Vermont this __26____ day of May 2017.

 

 

 

s/ Cynthia Stuart

___________________________________

Cynthia L. Stuart, Acting Commissioner

Vermont Department of Financial Regulation

Order Exempting NASAA From Licensure Under The Vermont Money Services Act

Order
Thursday, May 11, 2017
Docket No. 17-013-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket_17_013_B_NASAA%20Order.pdf

STATE OF VERMONT

DEPARTMENT OF FINANCIAL REGULATION

 

IN THE MATTER OF: )

) DOCKET NO. 17-013-B

NORTH AMERICAN SECURITIES )

ADMINISTRATORS ASSOCIATION )

)

ORDER EXEMPTING NASAA FROM LICENSURE UNDER THE VERMONT MONEY SERVICES ACT

WHEREAS, the Commissioner of the Vermont Department of Financial Regulation, pursuant to 8 V.S.A. chapters 1 and 79 (the Vermont Money Services Act), is charged with administering and enforcing Vermont law as it pertains to money transmitters in the State of Vermont; and

WHEREAS, the Vermont Money Services Act, defines money transmission as receiving money or monetary value for transmission to a location within or outside of the United States; and

WHEREAS, the North American Securities Administrators Association (NASAA) is a non-profit organization, whose membership is comprised entirely of securities regulators, including securities administrators in Vermont and all other states, the District of Columbia, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands; and

WHEREAS, NASAA, as a representative of the states, serves to promote federal and state uniformity and coordination in securities regulation and pursuant to this goal owns and operates the Electronic Filing Depository (“EFD”), the internet accessible database that enables issuers of securities to electronically submit uniform regulatory filings and the associated fees to all members; and

WHEREAS, NASAA has requested confirmation from the Vermont Department of Financial Regulation that the services it provides are not subject to licensure under the Vermont Money Services Act; and

WHEREAS, the Commissioner, pursuant to 8 V.S.A. §2501(b), may issue an order exempting any person from licensure as a money transmitter when such person is performing services for the benefit of the United States or for the benefit of any state; and

WHEREAS, NASAA, through EFD, facilitates the transmission of regulatory filings and collects filing fees from issuers on behalf of the member states, including Vermont, pursuant to a contractual agreement with each member state; and

WHEREAS, the Vermont Securities Division requires that regulatory filings and fees be submitted via EFD; and

WHEREAS, NASAA performs a valuable service for Vermont .by operating the EFD and has provided such services via the EFD for a number of years in a professional and effective manner; and

WHEREAS, the Commissioner finds, based upon the above, that NASAA does engage in money transmission, but that NASAA’s money transmission activities are performed for the benefit of its member states, including Vermont, and NASAA should be exempted from licensure as a money transmitter in Vermont pursuant to 8 V.S.A. §2501(b).

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

NASAA is exempt from licensure as a money transmitter because NASAA is performing money transmission services for the benefit of the State of Vermont, subject to the conditions that:

a. NASAA shall operate under the terms of a contractual agreement with Vermont regarding the EFD and its money transmission activities; and

b. NASAA shall notify the Commissioner of any material changes to the operation of EFD or to any other practices, policies or procedures pertaining to money transmission activities.

 

BY ORDER OF THE COMMISSIONER

Entered at Montpelier, Vermont, this ___11th_____ day of May, 2017.

______________________________________________________

Michael S. Pieciak, Commissioner

Vermont Department of Financial Regulation

Guidance for Implementing Regulation B-2016-01

Bulletin
Tuesday, April 4, 2017
Banking Bulletin #45

VERMONT DEPARTMENT OF FINANCIAL REGULATION 

DIVISION OF BANKING

Banking Bulletin #45  

Guidance for Implementing Regulation B-2016-01

The Department of Financial Regulation (“DFR”) adopted Regulation B-2016-01 Vermont Disclosure Form – Amount to be Financed in a Motor Vehicle Retail Installment Contract, effective April 1, 2017.  DFR, after consulting with the Department of Motor Vehicles (“DMV”), issues this Bulletin to provide guidance to the DMV Field Investigators, who review dealer transactions.  This guidance is also beneficial to the Dealers who complete the forms involved.

Regulation B-2016-01 modifies terms on the Vermont Disclosure Form that correlate to terms on two DMV forms completed by Dealers in sales transactions.  DFR and DMV have reviewed the revised terms to determine how they relate to the terms on the DMV forms.  This addresses the relationship of the “Cash Price” and the “Vehicle Price,” which are DFR terms, and the “Cash Price and the Purchase Price, which appear on the DMV Forms.1

Regulation B-2016-01 intends to allow Dealers the same flexibility in the calculation of the Cash Price that currently exists under federal law.  Accordingly, the Cash Price may now include Optional Items” which are defined in the Regulation as(1) service contracts; (2) services related to the sale; (3) purchase and use tax; and (4) fees for license, title and registration.    

Prior to Regulation B-2016-01, the Cash Price was used in the negative equity calculation on the Vermont Disclosure Form, however, the revisions to the Cash Price calculation allows for amounts that, if used in the negative equity calculation, would not adequately reflect the negative equity in a transaction.  To address this, the revised Vermont Disclosure Form (effective April 1, 2017), uses the Vehicle Price in the negative equity calculation.  The Vehicle Price is the Cash Price minus any of the Optional Items that are included in the Cash Price at the discretion of the dealer.   

Therefore, the relationship between Cash Price, Vehicle Price and Purchase Price on the applicable forms is as follows:

  • The Cash Price on the Vermont Disclosure Form (TA-VD-126 - commonly called “Negative Equity Disclosuremust match the Cash Price on the Department of Motor Vehicle Dealer’s Vehicle (Inventory) Record (TA-VD-125); and

  • The Vehicle Price on the Vermont Disclosure Form must match the Purchase Price on the Dealer Report of Sale – Temporary Registration (TA-VD-127) and the Registration/Tax/Tile Application (VD-119).

If the Dealer does not include Optional Items in the Cash Price, the Cash Price will equal the Vehicle Price and the Purchase Price.  If the Dealer chooses to include Optional Items in the Cash Price, the Dealer should review 9 V.S.A. § 2355(f)(1) which requires that certain Optional Items be disclosed on the retail installment contract.  

 

 

____________________________________________

Michael S. Pieciak, CommissionerDate:  April 4, 2017

Department of Financial Regulation

 

 

 

Vermont Disclosure Form - Amount to Be Financed in a Motor Vehicle Retail Installment Contract (Effective April 1, 2017)

Regulation
Saturday, April 1, 2017
B-2016-01
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/B-2016-01.pdf

 

REGULATION B-2016-01

 

Vermont Disclosure Form - Amount to Be Financed in a Motor Vehicle Retail Installment Contract

 

Section 1. Authority and Scope

1.1 This regulation is promulgated pursuant to the authority granted by 8 V.S.A. § 15 and 9 V.S.A. § 2355(f)(l )(J).

1.2 This regulation shall apply to all motor vehicle retail installment transactions governed by Title 9 V.S.A. Chapter 59.

 

Section 2. Purpose

2.1 The Vermont Disclosure Form ("Disclosure Form") required by 9 V.S.A. 2355 (f)(l)(J), must include the "amount financed on the motor vehicle retail installment contract as a percentage of the cash price of the vehicle." The purpose of the Disclosure Form is to inform consumers of the impact of adding negative equity to a motor vehicle retail installment contract. However, this Disclosure Form is required in connection with every motor vehicle retail installment contract regardless of whether or not the transaction involves negative equity.

2.2 The purpose of this regulation is to modify the current version of the Vermont Disclosure Form to clarify the meaning and calculation of the "Cash Price" and the "cash price of the vehicle" (or "Vehicle Price") for purposes of the Disclosure Form.

2.3 The Federal Truth in Lending Act, implemented by Regulation Z, defines "Cash Price" to be "the price at which a creditor, in the ordinary course of business, offers to sell for cash property or service that is the subject of the transaction. At the creditor's option, the term may include the price of accessories; services related to the sale; service contracts; and taxes and fees for license, title, and registration." 12 CFR Part 1026.2(a)(9).

A motor vehicle dealer may calculate the Cash Price on the motor vehicle retail installment contract in a manner consistent with Regulation Z. However, to fulfill the purpose of the Vermont Disclosure Form, Optional Items that may be included in the Cash Price under Regulation Z must be deducted in order to ensure that the amount financed as a percentage of the Vehicle Price is calculated on a consistent basis.

Therefore, when calculating the amount financed on the motor vehicle retail installment contract as a percentage of the Vehicle Price for purposes of the Disclosure Form, the "Cash Price" as it appears on the motor vehicle retail installment contract must be adjusted by subtracting any optional costs of services related to the sale; service contracts; and taxes and fees for license, title, and registration. By removing the Optional Items that creditors are allowed to include in the Cash Price under Regulation Z, the Vehicle Price on the Disclosure Form accurately reflects negative equity being financed.

 

Section 3. Definitions

3. 1 "Cash Price" means the minimum price for which the motor vehicle, including accessories, subject to the retail installment contract or another motor vehicle of like kind and quality, including similar accessories, may be purchased for cash from the seller by the buyer. 9 V. S.A. § 2351(6). If the dealer charges a documentation fee, it must be included in the cash price.

3.2 "Maintenance Agreement" means a contract of limited duration that provides for scheduled maintenance only. 8 V.S.A. § 4247.

3.3 "Optional Items",means those items that may be included in the Cash Price under Regulation Z and the Truth in Lending Act. .This includes services related to the sale, service contracts, purchase and use tax, and fees for license, title and registration. Accessories may also be included in the Cash Price but are not excluded from the Vehicle Price and therefore are not included in the definition of Optional Items.

3.4 "Service Contract" means any contract or agreement to perform or indemnify for a specific duration the repair, replacement, or maintenance of property for operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental, and emergency road service. 8 V.S.A. § 4247.

3.5 "Vehicle Price" means the Cash Price minus any Optional Items included in the Cash Price under Regulation Z. Vehicle Price is equivalent to the "cash price of the vehicle" [as referenced in 9 V.S.A. § 2355(f)( l )(J)] to be used when calculating the amount financed as a percentage of the cash price of the vehicle for purposes of the Disclosure Form.

3.6 "Warranty" means a warranty made solely by the manufacturer, importer, or seller of property or services, without charge, that is not negotiated or separated from the sale of the product and is incidental to the sale of the product, and that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor, or other remedial measures, such as repair or replacement of the property or repetition of services. 8 V.S.A. § 4247.

 

Section 4. Calculation of Cash Price

4.1 Multiple forms of motor vehicle retail installment contracts are in use in Vermont. Depending upon the form used or the practices and procedures of a particular dealer, the components of Cash Price may vary. Consistent with Regulation Z, Optional Items may be included in the Cash Price on the motor vehicle retail installment contract. By definition, a Warranty, if app'licable, is included in the Cash Price because the cost of a warranty is incorporated into the product pricing and cannot be separated from the sale of the product.

4.2 The Cash Price may not include any insurance, debt cancellation agreements, or similar agreements or contracts. The Cash Price must be consistent on all forms relating to any given transaction wherever the term is used. Regardless of a particular dealer's practices and procedures, the Cash Price on the retail installment contract will also be the Cash Price on the Disclosure Form and the Cash Price on the Department of Motor Vehicles Dealer's Vehicle (Inventory) Record.

4.3 When manufacturer rebates are disclosed on the motor vehicle retail installment contract but are not used to reduce the Cash Price, they must be deducted from the Cash Price on the Disclosure Form to ensure consistent negative equity calculations.

 

Section 5. Content of Disclosure

5.1 If the method of calculating the Cash Price includes Optional Items, the Disclosure Form requires that they be itemized and then deducted from the Cash Price to reach the Vehicle Price. The line labeled "Other" provides a space for additional items that are permitted in the Cash Price under federal law but must be deducted to reach the Vehicle Price, for example, in the event that a consumer purchases two types of service contracts, the "Other" line may be used so that each can be itemized.

5.2 Section 2 of the Disclosure Form discloses the amount financed as a percentage of the Vehicle Price for purposes of determining whether or not negative equity is being financed in the transaction.

 

Section 6. Form of Disclosure

6.1 The Disclosure Form shall be printed on a separate sheet of paper that is easily distinguished from all other disclosures, applications, or other documents presented to the buyer of the motor vehicle. A copy of the completed Disclosure Form must be given to the buyer(s). The Disclosure Form shall be printed in a size equal to at least 12-point type.

 

Section 7. Delivery of Disclosure

7.1 The Disclosure Form is required to be delivered with every motor vehicle retail installment contract regardless of whether or not the transaction involves negative equity.

7.2 The Disclosure Form shall be attached to and shall become part of the motor vehicle retail installment contract and must be assigned, sold, or transferred together with any assignment, sale, or transfer of the motor vehicle retail installment contract to which it was originally related.

7.3 Section 2355(f)(l)(J) of Title 9 requires a motor vehicle dealer to provide to the buyer(s) an unexecuted copy of the Disclosure Form prior to consummation of the transaction and requires that the Disclosure Form be signed by the buyer(s).

 

Section 8. Requirements of the Retail Installment Contract

8.1 The method of calculating the Cash Price may impact the retail installment contract. Optional Items that may be included in the Cash Price must be itemized on the retail installment contract as required by 9 V.S.A. § 2355. Specifically, these items include the cost of service contracts and the amount of all official fees, which the Department interprets to include the purchase and use tax. In order to reconcile these two requirements, if Optional Items are included in the Cash Price, the creditor must itemize the amounts attributed to these Optional Items on the retail installment contract in a conspicuous manner so that the borrower is aware of the Optional Items that are included in the Cash Price .

 

Section 9. Effective Date

9.1 This regulation shall take effect on April 1, 2017.

Pages

Subscribe to RSS - Banking