Pub. 1 2023 Issue 4

Disclosure Requirements: The amount charged for the Documentary/Service Fee must be listed as a separate itemized charge on the Buyer’s Order. The exact dollar amount of the fee should be clearly stated, and the following disclosure language must be included: “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.” This disclosure language should be bold and capitalized on any document where the fee is disclosed, ensuring that buyers and lessees are fully informed about the nature of the fee. Exclusions from the Fee: Regulation 8 explicitly states that the Documentary/Service Fee cannot include costs associated with the preparation of a retail installment contract, the lease, the perfection of a security interest or any finance charges. Dealerships must carefully assess the components included in the fee to ensure compliance with these exclusions. Uniform Application of the Fee: If a dealership chooses to charge a Documentary/Service Fee, it must be uniformly applied to all purchasers and lessees, regardless of the payment method. This requirement emphasizes fairness and transparency in the dealership’s fee structure. In conclusion, understanding and adhering to Regulation 8 is essential for Mississippi franchised automobile dealers to operate within legal boundaries and maintain a transparent and compliant business practice. Regular review and updates to fee structures, accurate reporting and proper disclosure are critical components of ensuring ongoing compliance with Regulation 8. CONTACT US TODAY TO PLACE YOUR ANNOUNCEMENT AD Call 801-676-9722 or scan the QR code to fill out the form. Employees are motivated when they are recognized and feel valued. It’s about… ▷ Who to congratulate ▷ Who to acknowledge ▷ Who to thank for a job well done This magazine is a great platform to celebrate your team’s accomplishments! Place QR Code Here IT’S ABOUT THE 19

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