[Vtr-tac] Dealer Bankruptcy - Closure Identification Procedure

Electronic Distribution of VTR Information to Texas Counties vtr-tac at dot.state.tx.us
Fri Jan 16 16:29:26 CST 2009

Please review and distribute as appropriate.

We have seen a recent increase in the number of dealers filing chapter
7 bankruptcies or simply going out-of-business without filing for
bankruptcy.  We have addressed the problems that these closings and
bankruptcies have caused your customers in prior ListServ notifications.
 In cooperation with MVD and the Comptroller, VTR is now addressing how
to identify these dealers as quickly as possible in order to provide all
interested parties timely notice of these closings.

Closed/Bankrupt Dealer List - Confidential 

VTR is maintaining a list of verified closed and bankrupt dealers. The
most current list is available at a confidential FTP address
.  From this list the county should be able to determine which procedure
to use when contacted by customers whose dealer is closed and did not
file the TT&L paperwork for them with the county. This list should not
be considered as comprehensive but is compiled to the best of VTR, MVD,
and Comptroller staffs* ability to verify dealer closure or bankruptcy
status.  Again, this list and the FTP address used to access it are
confidential.  Please do not distribute this FTP address or this list to
the public. 

List Updates - Everyone Can Help

All agencies, including the counties, can assist in providing updates
to this list.  When any office receives information from customers, news
sources, etc. about a dealer closing it should first review the VTR list
to determine if it has already been confirmed closed or bankrupt. If the
dealer is not on the list, the agency should try to verify the dealer
status such as by sending an individual to the dealer location. 
Verification of the dealer*s closure might include a sign on the door,
furniture gone, no vehicle inventory on the lot, etc.  If any
owner/management contact information is posted at the dealer location
that information should be recorded.  If the business is verified as
being out-of-business the following information should be emailed to
VTRintranet at dot.state.tx.us :
*	Dealer Name
*	DBA (if applicable)
*	Street Address
*	City
*	Zip Code
*	Verified Closure Date
*	Comments (include Name of person who verified closing,
owner/management contact information,  other pertinent information)

MVD Action

MVD, upon receipt of a written complaint that a dealer is out of
business, will place that complaint in line for investigation. After the
investigation, the attorney assigned to the case will send a certified
mail letter to the dealer that states the dealer must respond within 30
days addressing the allegation that he or she is not regularly and
actively engaged in business as a dealer. If the dealer does not
respond, or if the dealer does not provide sufficient evidence that the
dealer remains regularly and actively engaged in business, a contested
case proceeding will be initiated to revoke the license. Once a final
order has been issued, VTR will be advised of the action taken by the
order.   In instances where bankruptcy is suspected, MVD will attempt
during the investigation to obtain a copy of the filing and initial
order and will forward those documents to VTR after receipt.

Customers who wish to file a complaint or notify the MVD about a dealer
should complete and submit a complaint form available on our web site

Periodically the Comptroller*s Office may determine if the
dealerships on the list have filed for bankruptcy.   This information
will be updated on the list as it becomes available.

If you know of any additions or corrections please send them to
VTRintranet at dot.state.tx.us as soon as possible.  

If you have any other questions or need any additional information
please contact your local Vehicle Titles and Registration Division
Regional Office.



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 
Forget waiting in line, renew your registration online! Put Texas In
Your Corner.  Go to www.txdot.gov  for more info.

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