All businesses licensed by the Office of Consumer Credit Commissioner (OCCC) are examined on a periodic basis. An examination consists of a review of a representative sample of the licensee’s financing-related documents by an OCCC examiner. Following are some of the most common questions about the examination process.
How will I know if my business is scheduled for examination?
Motor vehicle sales finance (MVSF) licensees will receive notice one to four weeks before the scheduled exam date. Notice may come via phone, fax, e-mail, or U.S. mail. An examiner will coordinate any details with the compliance officer listed on your licensing application.
Who is my compliance officer?
The person you listed as Individual Primarily Responsible for Daily Financing Operations at this Location on your application: Form 60A, Application For A Motor Vehicle Sales Finance License.
Will the examiner go through all of my records?
No. The examiner chooses a representative, risk-based sampling of documents related to the financing of retail motor vehicle sales. In general, the greater the financed sales volume, the greater the sampled amount, but the total number of records examined may be affected by other factors as well.
Upon arriving, the examiner will discuss the company’s financing operations with the compliance officer to determine the number and types of records to sample. Most heavily sampled will be retail installment contracts. Other documents related to retail financing may include title transfers, credit insurance sales, and records associated with fees.
MVSF licensees that are receiving their first examination may be asked to provide records dating to September 1, 2002. During subsequent exams, examiners generally request records dating to the last examination.
What do I need to do to prepare for an exam?
There’s actually not all that much you need to do other than making accessible the records related to retail sales financing. Having available workspace for the examiner—including a desk or table, chair, adequate lighting, and convenient access to a 3-prong electrical outlet to power the examiner’s laptop computer—also makes the exam proceed more efficiently.
What happens after the examiner has reviewed the records?
Before leaving the site, the examiner will write a report containing the findings and will brief the compliance officer on the issues. If there are any steps the business needs to take or processes that need to change to ensure that the business is operating in compliance with Texas laws, the examiner will provide written instructions. A licensee has 60 days to take action regarding those instructions.
Will I have to pay any extra fees for the examination?
There are no separate exam fees. The agency recovers its costs, as directed by law, in the assessment fee paid once a year upon renewal.
What if I have more questions?
For further information, please have your compliance officer contact Director of Consumer Protection Huffman Lewis at 512.936.7625 or exam@occc.texas.gov.