regulation matters Money Matters
S
ometimes bad money decisions are not always apparent at the time to the person involved. When I think bad money decisions, the first thing that comes to my mind is Steve Martin’s quote “I love money. I love everything about it. I bought some pretty good stuff. Got me a $300 pair of socks. Got a fur sink. An electric dog polisher. A gasoline powered turtleneck sweater. And, of course, I bought some dumb stuff, too.” Unfortunately, Steve Martin is not the only one to make bad decisions with money. Here are a few ways to handle some common money mistakes.
Nonrefundable Deposits
The question on accepting deposits is a tough one. I understand why a dealer who takes a car off the lot would want to be compensated for the possibility of lost sales during the hold period, but ultimately, I agree with my old sales managers who always said, “we are in the business of selling cars not taking deposits.” The Office of Consumer Credit Commissioner has said that you are not supposed to keep any money until you have a signed contract, so without a signed contract, you must refund the deposit. Also, even if you do have a signed contract, the risk of a complaint over a nonrefundable deposit is just not worth it. Why end up dealing with a complaint being filed with a lawyer, OCCC, or the DMV for the reward of keeping someone’s deposit?
by Earl
Cooke
TIADA DIRECTOR OF COMPLIANCE AND BUSINESS DEVELOPMENT
“Although you are legally allowed to accept credit cards for a down payment, TIADA cautions and reminds dealers that consumers sometimes unfairly dispute legitimate charges.”
Disputed Credit Card Down Payment
Although you are legally allowed to accept credit cards for a down payment, TIADA cautions and reminds dealers that consumers sometimes unfairly dispute legitimate charges. The Fair Credit Billing Act allows a consumer to dispute a credit card transaction for 60 days after the first bill with the error was mailed to them. The FCBA applies to disputes about “billing errors,” including unauthorized charges, charges that list the wrong date or amount, and charges for goods or services you didn’t accept or that weren’t delivered as agreed. However, consumers often use this right to dispute legitimate charges. Should you receive a dispute from credit card company, you should provide as much necessary information as possible to help remedy the dispute in a timely manner with the credit card company. Each step in the 42
dispute process has a defined time limit during which action can be taken. VISA outlines the different types of disputes and the necessary documents in their “Dispute Management Guidelines for Visa Merchants.” This document is available online at no charge and is probably the best resource for the proper steps to take when you receive a dispute from a consumer regarding a credit card transaction. Often, TIADA receives inquires from dealers as to taking the customer to court and this is possible; however, as anyone who has ever dealt with litigation knows, it can be expensive. Before seeking a remedy with the courts, it is best to go through the dispute process with VISA. T e x a s
D e a l e r
May 2021
