As previously reported in the NewsLetter, the Department of Banking and Insurance (DOBI) has implemented a new “annual report” requirement for any business that holds a DOBI-issued license, including franchised car and truck retailers licensed as Motor Vehicle Retail Installment Sellers. The “annual report” should detail the transactions subject to DOBI’s regulatory authority. The deadline for filing the annual report—electronically—is
NJ CAR met earlier in the month with officials from DOBI and was told that only 117 franchised new car and truck retailers had filed their annual report. That means that more than 490 dealerships have not yet filed their report, with only two weeks left until the deadline. Last week, NJ CAR President Jim Appleton sent a letter to those dealerships identified as having NOT filed their report, encouraging them to do so as soon as possible.
Please Note: DOBI has mailed electronic filing instructions to each license holder. Included with these instructions is an “authentication code” that is needed to set up an online report filing account. DOBI has recently updated its information website to advise on the status of its mailings and to give contact information for any licensee that has not received instructions and an authentication code as follows:
If you have not received your notification, please e-mail your company name, license reference number and phone number to [email protected].
The following information will be needed to file your annual report:
¨ Number of finance contracts and total amount financed for vehicles sold with a net amount financed $10,000 or less (including lease transactions when the lease agreement contains a buy-out clause);
¨ Average amount financed for vehicles sold with a net amount financed of $10,000 or less;
¨ Number of finance contracts and total amount financed for vehicles sold with a net amount financed between $10,001 and $50,000 (including lease transactions when the lease agreement contains a buy-out clause);
¨ Average amount financed for vehicles sold with a net amount financed between $10,001 and $50,000;
¨ Number of finance contracts and total amount financed for vehicles sold with a net amount financed over $50,000 (including lease transactions when the lease agreement contains a buy-out clause); and
¨ Average amount financed for vehicles sold with a net amount financed over $50,000.
Important Note: In compiling this reporting information, DOBI has instructed that lease transactions should be included as finance transactions whenever the lease agreement contains a buy-out agreement (as most lease agreements do).
DOBI has prepared a worksheet on which the annual report information may be prepared prior to filing. This worksheet may be downloaded from DOBIs website at:
http://www.state.nj.us/dobi/bankdedfund/motorvehicleinstallworksheetv1-2.pdf.
Note: You should not file your dealership’s annual report until you are confident that the information is complete and accurate; DOBI’s electronic filing system does not allow you to update or change the report once it is filed.
Further information on the annual reporting requirement is available at the DOBI’s website. Simply go to the DOBI website (http://www.state.nj.us/dobi) and, in the far right-hand column, under the Banking heading, click on the link titled “Licensees: Update on Annual Reports.”
Dealerships must file the annual report by April 1 to avoid a late penalty of $50 per day. In addition, DOBI may act to suspend or revoke the license(s) of a licensee that fails to file the required report.