CAPSS Newsletter-Corrected

CAPSS Compliance Pathway
Colorado Automobile/Powersport Support Services, LLC

December 2010

We apologize for the broken links in the newsletter sent December 16, 2011. Here is the corrected newsletter - and we hope all the links are now intact. Please delete the previous version.

Welcome to our CAPSS Holiday newsletter. We want to thank you for the opportunity to serve you this past year. It has been a challenging year for our members, but we have found dealers are very resilient. We wish all of you a great Christmas, and we hope to continue our service to you in 2011.

The State's new Mastery Exam is now on-line! The failure rate is high, so it is best to prepare before attempting the exam. We have received lots of questions and requests for training for this test, and we are happy to announce our new on-line, on-demand class is up and running. See the information and links in this newsletter!

Risk-Based Pricing is a new requirement starting in January 2011 - read up on what it means to your dealership. We also have included an update on Emissions, and a review on Advertising Rules.

Red Flags is scheduled to go into effect on December 31st. It has been delayed several times, but as of this date, dealers should be ready to comply with this federal regulation.

And coming in January, we will be introducing a new website with an on-line store. You will be able to order forms and supplies, and pay for them by credit card. Watch for this and give us your feedback!

Are you confused about regulations, or do you have questions how to deal with unusual situations? We offer memberships which allow you consulting privileges for a one-year period. For more information, check out our web site: www.capss.biz .

Our upcoming classes are listed later in this newsletter - or you can always visit our Web site for the latest information www.capss.biz . Call Connie at 970-209-7499 or Mary at 303-478-2538 if you have questions.

Thank you again for allowing us to serve you.

Sincerely,
Mary Marvin & Connie Hatch
CAPSS LLC

	Emission Update

	Emission Testing Back in Parts of Larimer and Weld Counties Legislative change which became effective January 1, 2010, brought parts of El Paso, Larimer and Weld counties back into the emission testing areas. El Paso County will be in the basic emission program area. Larimer and Weld were placed in the enhanced emission program area. Larimer County - Wellington south and Drake/Stove Prairie East (Range 71). Estes Park will join the program at a later date. Weld County - Eaton/Severance south and Greeley Airport west. Note: the Weld County eastern boundary varies - all of Greeley metro is in; Gilcrest, Peckham and Platteville are out --- but the rest of western Weld County south to the Adams/Broomfield county line is in. Vehicles 1982 and newer are required to be inspected every other year (biennial). Model year vehicles 1981 and older are required to be inspected annually. Emission testing must be completed before the vehicle's registration is renewed. Beginning with registrations due in November 2010, a test will be required, on an odd-even year/model year cycle for the new emission testing areas. For 2010, being an even-number year, November and December 2010 registration renewals, all eligible even-numbered model year vehicles re-registering in those months must comply. In January and for the rest of 2011, odd-numbered model year vehicles must comply as their registration comes due. Testing Stations: Fort Collins - I25 and CO14 Loveland - Highway 287 and 70th Avenue Greeley - 34 Bypass and 28th Avenue Dacono - I25 exit 235, north of the salvage yard

	Legislative Update - Risk-Based Pricing

	Dealers Subject to Risk-based Pricing Rule Effective January 1, 2011, dealers will be subject to the Federal Trade Commission's Risk-Based Pricing Rule. The FTC states: "Risk-Based Pricing refers to the practice of setting or adjusting the price and other terms of credit provided to a particular consumer based on the consumer's creditworthiness". A Risk-Based Pricing Notice must be provided to consumers in certain circumstances. A dealer must provide a risk-based pricing notice to "a consumer when the dealer used a consumer report in connection with an application of credit and, based in whole or in part on the consumer report, grants, extends, or provides credit to the consumer on material terms that are materially less favorable than the most favorable terms available to a substantial portion of consumers. The risk-based pricing notice requirement is designed primarily to improve the accuracy of consumer reports by alerting consumers to the existence of negative information on their consumer report, so that consumers can, if they choose, check their consumer reports for accuracy and correct any inaccurate information". The rules clarify that the risk-based pricing notice requirements apply only in connection with credit that is primarily for personal, household, or family purposes. If you are providing a risk-based pricing notice to consumers you finance, you must identify who gets the notice. A dealer that uses credit scores to set the material terms of credit to determine a cutoff score (which represents the point at which approximately 40% of its consumers have higher credit scores and 60% of its consumers have lower credit scores) must provide a risk-based pricing notice to each consumer who has a credit score lower than the cutoff score. Consumers who get the risk-based pricing notice are entitled to a free credit report. A dealer may choose to comply with the Risk-Based Pricing Rule by providing an "exception notice" to every consumer who applies for credit through the dealership. Both the Federal Trade Commission and the National Automobile Dealer's Association recommend using the "exception notice". The "exception notice" does not require a risk-based pricing notice to anyone, but you are required to provide a *written credit score disclosure notice* to every consumer who applied for credit through your dealership. If you provide a credit score disclosure notice, the customer is not entitled to a free credit report. However, the disclosure requires specific language and a disclosure of the customers actual credit score along with information about how his credit score relates to other consumers in the same scoring group. A dealer can purchase the credit score and a notice form from a credit bureau. The notice must be handed to the consumer before the transaction is completed. For more detailed information regarding the Risk-Based Pricing Rule, visit the Federal Trade Commission's website at www.ftc.gov/opa/2009/12/rbpricing.shtm This article is not intended as legal advice, but for information only.

	Advertising

	Is your dealership compliant with Advertising Rules? Have you checked your advertising lately? Many dealers seem to have forgotten about the Dealer Board's advertising rules and regulations. If you have an advertised price in a magazine or in the newspaper, the same price must be so advertised if advertising on the internet. Advertising Rule #3 states "Advertising a specific motor vehicle for sale or lease with price or terms quoted without fully identifying the vehicle as to year, make, model and dealer stock number" is construed as misleading or inaccurate advertising. Rule #3 goes on to say "the vehicle shall be willfully shown and sold at the advertised price and or terms while such vehicle remains unsold or un-leased, for a period of five days following the last date the ad was published, unless the ad states that the advertised price and terms are good only for a specific time and such time has elapsed". Advertising Rule #4 states: "using a picture or photograph of a vehicle in advertising when the picture or photograph is not the same make, year and equipment actually being offered for the price or terms advertised" is a violation of the ad rules. However, your advertisement may say: "colors may vary". Also, a forgotten rule is Advertising Rule #9. Rule #9 states: "Advertising which creates the false impression that the purchaser will determine the terms, price or conditions of a sale, such as "write your own deal", "name your own price", "no reasonable offer refused", and "we will not be undersold" are not permitted. Advertising any item as "free" which is associated with or conditioned upon the negotiated sale of a motor vehicle is not permitted. Remember, in addition to Board action, the following sanctions may be imposed: A person commits a class 2 misdemeanor if he knowingly makes a false or misleading statement in any advertisement.

	Titles & Registrations Form Changes/Updates

	The following are reminders. DR 2174 - Secure Power of Attorney (12/22/2009) Previous versions accepted through 05/07/10 DR 2173 - Secure Motor Vehicle Bill of Sale (revised 06/24/09) Previous version accepted through 11/04/09 NOTE: These forms are secured forms and are not available on the Revenue Website. They can be ordered through CAPSS - give us a call. For questions, contact the Colorado State Title Section: 303-205-5608 or Colorado State Registration Section: 303-205-5607

QUESTIONS ?

Do you have questions regarding odometer laws, salvage vehicles, repossessions, or more? Benefits of your membership include phone consultations - so don't hesitate to pick up the phone and ask those questions. Not a member? Call now to join, only $125 a year!

Our newsletters will advise you of form updates by the state, legislative changes, and other items of interest, including compliance tips for your review.

We also offer continuing education to dealers and their employees. We strive to give you the best education at reasonable prices. Classes are offered on the front range (Golden) and the Western Slope (Montrose) as well as occasional classes in other parts of the state.

For more about our seminars, check out the Upcoming Training Seminars section of this newsletter, or check out web site on-line at www.capss.biz.

And give us a call for all your form and supply needs!

If you have ideas on how we can better support you, please contact us!