Regulations: Regulation Eight

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Regulations

Regulation Eight:
Motor Vehicle Dealer Documentary/Service Fees - Disclosures

  1. A Document/Service Fee (Fee) may be charged by a motor vehicle dealer for services rendered to, for, or on behalf of a purchaser in preparing, handling, and processing documents relating to the sale or lease of a motor vehicle.
  2. The Fee must:
    1. be reasonable and based on the market price of the services rendered; and
    2. be directly related to the preparation and processing of documents; and
    3. be related to activities required to comply with local, state, or federal law concerning motor vehicle sales; and
    4. be charged to all purchasers and lessees of vehicles regardless of the payment method (i.e., cash or credit); and
    5. be disclosed as a separate itemized charge with the exact dollar amount of the Fee listed on the buyer’s order and bill of sale; and
    6. not include costs associated with the preparation of a retail installment contract, the lease, or perfection of a security interest; and
    7. not include any finance charge; and
    8. not exceed $425.00.
  3. The Fee shall be deemed to comply with the requirements of this regulation so long as it meets the foregoing requirements.
  4. D. On all documents where the Fee is disclosed, the following notice must be bold and capitalized as follows:

    “A DOCUMENT/SERVICE FEE IS NOT AN OFFICIAL FEE AND IS NOT REQUIRED BY LAW, HOWEVER, IT MAY BE CHARGED TO A BUYER/LESSEE FOR THE PREPARATION, HANDLING AND PROCESSING OF DOCUMENTS AND THE PERFORMANCE OF SERVICES RELATED TO THE SALE OR LEASE OF A MOTOR VEHICLE AND MAY INCLUDE DEALER PROFIT. THIS NOTICE IS REQUIRED BY REGULATION OF THE MISSISSIPPI MOTOR VEHICLE COMMISSION.”

  5. All motor vehicle dealers who charge a Fee must report amount of their Fee to the Motor Vehicle Commission within thirty (30) days of the effective date of this regulation, and annually by December 31st of each year.
  6. This regulation is promulgated under and in accordance with Mississippi Code of 1972 § 63-17-69, and this regulation is enforceable pursuant to Mississippi Code of 1972 § 63-17-85.

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