12 USC 5519 - Exclusion for auto dealers

U.S Code last checked for updates: May 06, 2024

§ 5519.

Exclusion for auto dealers

(a)

Sale, servicing, and leasing of motor vehicles excluded

(b)

Certain functions excepted

Subsection (a) shall not apply to any person, to the extent that such person—

(1)

provides consumers with any services related to residential or commercial mortgages or self-financing transactions involving real property;

(2)

operates a line of business—

(A)

that involves the extension of retail credit or retail leases involving motor vehicles; and

(B)

in which—

(i)

the extension of retail credit or retail leases are provided directly to consumers; and

(ii)

the contract governing such extension of retail credit or retail leases is not routinely assigned to an unaffiliated third party finance or leasing source; or

(3)

offers or provides a consumer financial product or service not involving or related to the sale, financing, leasing, rental, repair, refurbishment, maintenance, or other servicing of motor vehicles, motor vehicle parts, or any related or ancillary product or service.

(c)

Preservation of authorities of other agencies

(d)

Federal Trade Commission authority

(e)

Coordination with Office of Service Member Affairs

The Board of Governors and the Federal Trade Commission shall coordinate with the Office of Service Member Affairs, to ensure that—

(1)

service members and their families are educated and empowered to make better informed decisions regarding consumer financial products and services offered by motor vehicle dealers, with a focus on motor vehicle dealers in the proximity of military installations; and

(2)

complaints by service members and their families concerning such motor vehicle dealers are effectively monitored and responded to, and where appropriate, enforcement action is pursued by the authorized agencies.

(f)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Motor vehicle

The term “motor vehicle” means—

(A)

any self-propelled vehicle designed for transporting persons or property on a street, highway, or other road;

(B)

recreational boats and marine equipment;

(C)

motorcycles;

(D)

motor homes, recreational vehicle trailers, and slide-in campers, as those terms are defined in sections 571.3 and 575.103 (d) of title 49, Code of Federal Regulations, or any successor thereto; and

(E)

other vehicles that are titled and sold through dealers.

(2)

Motor vehicle dealer

The term “motor vehicle dealer” means any person or resident in the United States, or any territory of the United States, who—

(A)

is licensed by a State, a territory of the United States, or the District of Columbia to engage in the sale of motor vehicles; and

(B)

takes title to, holds an ownership in, or takes physical custody of motor vehicles.

(Pub. L. 111–203, title X, § 1029, July 21, 2010, 124 Stat. 2004.)

cite as: 12 USC 5519