Arkansas Administrative Code
Agency 130 - Arkansas State Police
Rule 130.00.07-001 - Used Automobile Dealers Service and Handling Fees Rules
Universal Citation: AR Admin Rules 130.00.07-001
Current through Register Vol. 49, No. 2, February 2024
Rule 1.0 Rules Adopted.
These Rules shall be known as the Used Motor Vehicle Dealers' Service and Handling Fees Rules , promulgated by the Director of the Department of the Arkansas State Police.
Rule 1.1 Authority; Scope; Effective Date.
a)
These Rules are issued under
the Director's authority at Ark. Code Ann. §§
23-112-617(e)
(Supp. 2007), et seq., as amended by Arkansas Act 366 of 2007,
and Ark. Code Ann. §
12-8-104(c)
(Supp. 2007), as well as the Arkansas Administrative Procedure Act, codified at
Ark. Code Ann. §§
25-15-201,
et seq.
b)
These Rules shall apply to all Used Motor Vehicle Dealerships
which or Used Motor Vehicle Dealers who are subject to licensure by the
Department of the Arkansas State Police under Ark. Code Ann. §§
23-112-601
(Supp. 2007), et seq.
c)
These Rules shall be
effective on and after September 15, 2007.
Rule 1.2. Definitions.
a) "Director" means Director of the
Department of the Arkansas State Police.
b) "Department" means the Department of the
Arkansas State Police.
c) "Service
and handling fee" as a term means the sums charged customers of
Used Motor Vehicle Dealers upon the sale, or lease with option to purchase or
own, of a used motor vehicle under Ark. Code Ann. §
23-112-617
(Supp. 2007), et seq.; and which fee is customarily imposed by
the Used Motor Vehicle Dealer for reimbursement of his/its costs and expenses
in handling and processing and storage of documents, or other clerical or
administrative services, processes and procedures, and connected with the sale,
or lease with option to purchase or own, of a used motor vehicle.
d) "Used Motor Vehicle Dealer" means Arkansas
motor vehicle dealerselling, or leasing with option to purchase or own, used
motor vehicles to the general public under licensure by the Department of the
Arkansas State Police under Ark. Code Ann. §§
23-112-601,
et seq., and these Rules .
Rule 1.3. Determination of Fee.
a) By law, the Director of the Department of
the Arkansas State Police shall, pursuant to Ark. Code Ann. §
23-112-617,
determine the amount of licensed Used Motor Vehicle Dealers' fees for servicing
and handling the sale, or lease with option to purchase or own, of a used motor
vehicle to the Arkansas general public and other customers.
b) By law, the fee to be charged by Used
Motor Vehicle Dealers for servicing and handling shall be no less the zero
dollars ($0.00) in amount, and no more than one hundred twenty-nine dollars
($129) in amount, for each sale, or lease with option to purchase or own,
contract per one (1) or more motor vehicle(s), according to Ark. Code Ann.
§
23-112-617(c)
(Supp 2007).
c) The amount of the
fee established by these Rules shall be no less than $0 and no
more than $129.00.
Rule 2.0 Dealers' Imposition of Fee.
a) Any service and handling fee imposed on
customers by Used Motor Vehicle Dealers subject to these Rules :
1) shall be charged uniformly to all retail
customers;
2) may not be presented
as mandatory in writing, electronically, verbally, via American Sign Language,
or via other media as mandatory; nor presented as mandatory or mandated by any
entity, other than the Arkansas Used Motor Vehicle Dealer who or dealership
which is legally permitted to invoice, charge and collect the service and
handling fee established by these Rules ;
3) must follow the procedures for disclosure
set out by these Rules . Appropriate notice means disclosing the
following information to any customer or consumer in writing
including :
(A) the dollar amount
of the service and handling fee; and
(B) information which is typed in bold-face,
capitalized, or underlined text or is otherwise conspicuously set out from
surrounding or accompanying written or typed material;
4) must also be prominently displayed in
posters or signs:
(A) measuring at least 8
inches by 10 inches in the Used e Motor Vehicle Dealer's showroom, primarily in
the finance and insurance offices or other sales areas with frequent customer
access and where used motor vehicle sales, or lease with option to purchase or
own, documents are read and signed;
(B) which include notice to customers that
the dealer or dealership charges a service or handling fee, stating the exact
amount of the fee, if any, to be charged, and stating other information
required by Ark. Code Ann. §
23-112-617;
(C) which are displayed in a common font
(Times New Roman, Courier New, or Arial, for example); are in legible type and
font size clearly readable at a distance of not less than ten (10) feet; ; and
which include statutory information;
(D) with wording and graphic designs
utilizing the full area of the posters or signs; and
(E) which may be similar to any example
proposed and published by the Arkansas Motor Vehicle Commission in or relating
to its Rule
8.
b) Any service and handling fee
imposed on customers by Used Motor Vehicle Dealers subject to these Rules :
(1) shall be disclosed on the retail
customer's order form as a separate itemized charge for sale, or lease with
option to purchase or own, of a used motor vehicle;
(2) shall be disclosed in any preliminary
worksheet computing a sales, or lease with option to purchase or own, price on
a used motor vehicle;
(3) shall be
disclosed in any retail buyer's order form from the purchaser, or lessee or
lessor with an option to purchase or own, and computing the sales, or lease
with option to purchase or own, price on a used motor vehicle; and
(4) shall be disclosed in any retail
installment sales, or lease with option to purchase or own, contract computing
a sale, or lease with option to purchase or own, price on a used motor
vehicle.
c) Any such
retail customer's order form, preliminary worksheet, or installment sale, or
lease with option to purchase or own, contract, disclosing the amount of the
service or handling fee, shall include a separate consumer notice subject to
the same requirements in Rule
2.0(a)(3)(B),
and which for used motor vehicle sales, or leases with options to purchase or
own, states:
"A SERVICE AND HANDLING FEE IS NOT AN OFFICIAL FEE. A SERVICE AND HANDLING FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO THE CUSTOMER FOR PERFORMING SERVICES AND HANDLING DOCUMENTS RELATING TO THE CLOSING OF A SALE OR LEASE WITH OPTION TO PURCHASE OR OWN. THE SERVICE AND HANDLING FEE DOES NOT INCLUDE PAYMENT FOR THE PREPARATION OF LEGAL DOCUMENTS. THIS NOTICE IS REQUIRED BY LAW."
_____ SIGNED __________________________________
COLONEL WINFORD E. PHILLIPS
DIRECTOR, DEPARTMENT OF ARKANSAS STATE POLICE
_____ 9-14-2007 _________________________________
DATE
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