OCCCAdvisoryBulletinB17‐2(Sept.7,2017) Page2of3
o astatementthatthebuyermayterminatetheagreementatanytimeonorafterthe
31stdayaftertheretailinstallmentcontractandreceiveaproratarefund,minus
anyapplicablecancellationfeewhichmaynotexceed
$50,and
o astatementthatthebuyerhasbeenprovidedaclearandconcisedisclosureofthe
amountofthecreditavailableduringthetermofthetrade‐increditagreement.
Refundingrequirements:Ifthebuyerterminatesthetrade‐increditagreementbefore
the31stdayaftertheretailinstallmentcontract,thenthesellermustprovidethebuyer
afullrefundofthechargefortheagreement.Ifthebuyerterminatesafterthe31stday,
thesellermustprovideaproratarefund,minusanycancellationfeethatmaynot
exceed$50.
Contractualliabilityreimbursementpolicy:Toensurefaithfulperformanceofthe
seller’sobligationsunderatrade‐increditagreement,thesellermustbeinsuredunder
acontractualliabilityreimbursementpolicyapprovedbytheTexasDepartmentof
Insurance.
Limitationonamountcharged:Theamountchargedforatrade‐increditagreement
maynotexceed5%ofthecashpriceofthemotorvehicle,includinganyattached
accessories,andexcludingthepriceofservicesrelatedtothesale,thepriceofservice
contracts,taxes,andfeesforlicense,title,andregistration.
Requireddocumentation:Thetrade‐increditagreementmustrequirethebuyerto
provideproofofinsurancesettlementdocumentsinordertoobtainthecredit,andmay
notrequirethebuyertoprovideanyotherdocumentation.
Providingbenefitunderagreement:Ifaretailsellerentersatrade‐increditagreement
witharetailbuyer,theretailsellermustcomplywiththetermsofthetrade‐incredit
agreementinconnectionwiththepurchaseorleaseofasubsequentmotorvehicle.A
retailsellermustprovideany
creditrequiredunderatrade‐increditagreementatthe
timeofthepurchaseorleaseofasubsequentmotorvehicle.
Reasonablebenefit:Thebenefittobeprovidedunderatrade‐increditagreementmust
bearareasonablerelationshiptotheamountchargedfortheagreementandthe
amount,term,andconditionsoftheretailinstallmentcontract.
Recordkeeping:UndertheOCCC’srecordkeepingrules,sellersmustmaintainacopyof
theagreement,evidenceofthecontractualliabilitypolicy,documentationofany
refund,evidenceoftheamountofanycreditapplied,anydocumentationusedto
processaclaim,andaregisterthatreflectsagreementsthatweresatisfiedordenied.