Relating to administrative fees charged by motor vehicle dealers, and making penalties applicable

Under current law, a motor vehicle dealer (dealer) is authorized to charge a documentary fee not to exceed $180 for each motor vehicle sold in a transaction. A “documentary fee” is a fee charged to a customer by a dealer for the preparation of documents related to an application for motor vehicle registration and an application for issuance of a certificate of title, and the performance of other related services for the customer, but does not include any costs or fees charged to a dealer or a dealer’s customer by a third party. A dealer who charges a documentary fee is required to include the fee in the price of the motor vehicle, in advertisements for the vehicle, and when making or accepting an offer for the vehicle. A dealer is required to clearly and conspicuously disclose a specific notice of the fee in any motor vehicle purchase agreement with a customer. This bill authorizes a dealer to charge an administrative fee, rather than a documentary fee, to a customer for performing services, related to the sale of a motor vehicle, on behalf of the customer. The bill strikes the maximum amount a dealer is authorized to charge for such a fee. The bill makes conforming changes to the required notice.16. Several types of remedies are available if a court finds that a person has committed an unlawful practice, including injunctive relief, disgorgement of moneys or property, and a civil penalty not to exceed $40,000 per violation.