[Vtr-tac] Dealer Closure and Closures Due to Bankruptcy* Update

Electronic Distribution of VTR Information to Texas Counties vtr-tac at dot.state.tx.us
Mon Dec 1 17:06:47 CST 2008

Dear Tax Assessor-Collectors:

Please review and distribute as appropriate.

We understand that the counties are struggling with how to respond to
customers who have been inconvenienced by dealers who have closed
unexpectedly or closures due to bankruptcy*.  Some counties are
receiving calls from customers who are unable to complete the title and
registration process.  TxDOT and the State Comptroller*s Office are in
the process of trying to come up with the most advantageous resolution
for your customers.  There are many legal issues that must be carefully
addressed.  We hope procedures can be announced in mid-December. 
Additional information is provided below.

Actions to Date:
- Several meetings have been held with representatives from TxDOT (VTR,
MVD, and our general counsel), the Comptroller*s Office, and several
- We are in the process of establishing a master list of dealer
closures and/or bankruptcies.  

- Minimize customer inconvenience
- Treat customers consistently
- Develop efficient tools TAC, TxDOT, and Comptroller staff can use to
deal with these dealership closures, such as flow charts and procedures

Requested TAC Actions:
1.	Please do not process ANY transactions for dealers that have
closed-even if they have not filed for bankruptcy-until you receive
further notice from TxDOT and the Comptroller*s Office.  We are
shooting for a mid-December date to complete these procedures.
2.	Share this information with your county officials, lien holders,
and customers to help them understand the reason for the processing
3.	Send information that you have on dealers in your county to
VTR_Intranet at dot.state.tx.us  (please note that there is an
underscore between VTR and Intranet).  The required fields are shown in
the attached chart.  We will send you a link to this table, which we
will update as needed, as soon as the initial list is compiled.
4.	We also suggest that you review all of your dealer bonds on a
regular basis to be sure you are protected if they go out of business.

We will provide additional updates after our next meeting.
If you have any questions or need any additional information please
contact your local Vehicle Titles and Registration Division Regional

* This does not include bankruptcies filed for the purpose of
reorganization, dealerships closed in an orderly fashion, or smaller
dealerships temporarily closed (or on vacation).  It is intended to
address situations where unexpected dealership closures have occurred
where the customer*s paperwork was not properly filed with the tax


If you have any comments or suggestions concerning this VTR
communication process, please contact your local VTR Regional Office.

If you would like to see previous postings from the "VTR Electronic
Archives," please visit
http://extlists.dot.state.tx.us/pipermail/vtr-tac/ .

Rebecca Davio
Vehicle Titles and Registration Division, TxDOT
Telephone: (512) 465-7570
FAX: (512) 467-5909
Email: rdavio at dot.state.tx.us 
Want to know what*s ahead for Texas transportation?  Join us for the
4th annual Texas Transportation Forum in January 2009.  Go to
www.TexasTransportationForum.com to find out more.

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