This section prohibits the dealer from enforcing any provision granting the dealer power of attorney or confession of judgment. Lastly, ORS 83.670 notes certain provisions in the RIC are unenforceable. ORS 83.540 also allows for the consumer to rescind the deal in very limited circumstances. It is important to note, once the transaction is complete the dealer must deliver or mail a copy of the RIC to the purchaser. Failing to include the deferred down payment in the RIC is likely a violation of ORS 646.608(1)(k) and may be a violation ofOAR 13(3)(t). This section mandates that if there are any future payments the amount and due date must be included in the RIC. However there is not anything in writing noting that the down payment is owed, and the documents note that the cash down payment has been made. Later the dealer asserts the consumer owes a certain amount of money for the down payment. Dealers sometimes claim to have deferred a down payment that was listed as a “cash down payment.” on the RIC. That subsection mandates the RIC must include a plain and concise statement of the amount in dollars of each installment or future payment to be made by the consumer, the number of installments are required, and the date or dates which, or periods in which the installments are due. Arguably failing to comply with this section is a violation of ORS 646.608(1)(k), and ORS 646.608(1)(s).Īnother often overlooked sub-section is ORS 83.520(3)(j). However, the dealership listed the traded in items as a $500.00 “cash down payment” on the RIC and failed to itemize the amounts given for the television and video games. I represented a client that traded in a television and video games for the vehicle down payment. ![]() Violations of this section regularly occur when the dealer is taking in property other than a vehicle as the trade in. ORS 83.520(3)(b) requires the RIC to note the amount of the buyer’s down payment, itemizing the amounts, if any, paid or credited in money or in goods and containing a brief description of goods traded in. An unlawful negative equity violation may result in a UTPA violation, Truth In Lending Act Violation, or other violations. ( See OAR 13(2)(t) and (u) for a more detailed explanation of negativeequity.) OAR 13(3)(aa) prohibits the vehicle dealer from raising the “cash sale price” of the new vehicle to offset the negative equity in the trade-in. The negative equity issue arises if the consumer owes more than the trade-in is worth. OAR 13(3)(aa) prohibits a negative equity adjustment when trading in a vehicle to purchase another vehicle. ORS 83.520(3) is very important if you are addressing a negative equity issue with the vehicle trade in. The “cash sale price” can include, taxes, registration, license fees and other charges for accessories and their instillation, and for vehicle improvements. The “cash sale price” is defined as the price for which the vehicle dealer would sell to the consumer, and the consumer would buy from the motor vehicle dealer, if the sale were a sale for cash instead of a retail installment contract. ORS 83.520(3) (a) mandates the RIC to contain the “cash sale price” of the vehicle. This section is where statutory violations can be found. ORS 83.520 has other statutory mandates, but the most important mandates are found in section 3. ORS 83.520 notes a retail installment contract shall be in writing, shall contain all the agreements of the parties, shall contain identifying information relating to the dealer, purchaser, and vehicle. Most consumer’s are provided the long pink piece of paper noting “Retail Installment Contract” on the heading. Oregon Law specifically prescribes the form and contents of the RIC. Retail installment sales make up the vast majority of vehicle sales in Oregon. ![]() Basically the RIC is an agreement entered into in Oregon where the vehicle dealer holds the the title to the vehicle or a lien upon a motor vehicle, which is the subject matter of a retail installment sale. These statutes should be reviewed before drafting a Complaint or demand letter. Oregon Law has specific provisions that apply to every RIC in Oregon. The RIC is a valuable tool that can reveal UTPA violations, Truth In Lending Act (TILA) Violations, and violations of the Oregon Administrative Rules. Attorneys representing clients in a case involving the purchase of a motor vehicle must carefully review the Retail Installment Contract (RIC) for statutory violations and other causes of action.
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