Gray N.G. Auto and Truck Sales and Repair Inc Consent Order

May 23, 2019

STATE OF MAINE
BUREAU OF CONSUMER CREDIT PROTECTION
Docket # 2019-101
CONSENT ORDER

In re:
GRAY N.G. AUTO & TRUCK SALES & REPAIR, INC.
1101 LEWISTON ROAD
NEW GLOUCESTER, ME 04260

The PARTIES HERETO AGREE AS FOLLOWS:

  1. The Maine Bureau of Consumer Credit Protection (the Bureau) is responsible for administering and enforcing the Maine Consumer Credit Code, Title 9-A of the Maine Revised Statutes, and the Federal Regulations incorporated therein.
  2. Gray N.G. Auto & Truck Sales & Repair, Inc. ("Gray N.G."), sells and finances used motor vehicles from an office in New Gloucester, Maine. It is authorized as a used car dealer, notification number UCD9938, with the Bureau.
  3. The Bureau has authority to examine the books and records of any person its Superintendent believes has engaged in conduct governed by The Consumer Credit Code under 9-A M.R.S. § 6-106 and to charge the person or entity the reasonable costs of such examination.
  4. The Bureau performed an examination of Gray N.G.'s records on October 17, 2018. The examiner noted violations of 9-A M.R.S. § 3-314 which requires compliance with federal laws, rules and regulations relating to the privacy of consumer financial information.
  5. The examiner cited violations of 16 C.F.R. § 314.3 and 16 C.F.R. § 314.4 for Gray N.G. failing to develop and implement a written information security program and a privacy policy.
  6. The examiner also cited a violation of 9-A M.R.S. 5-117 for Gray N.G. requiring customers to sign a Personal Loan Contract (PLC) in addition to the dealerships standard Retail Installment Contract. The PLC contained provisions not authorized by and in direct contravention of Maine law.

  7. Pursuant to standard Bureau procedure, an examination report and invoice for the examination were mailed to Gray N.G. on October 30, 2018.
  8. By December 6, 2018, the Bureau had received no payment of the invoice from Gray N.G.
  9. No response to the examination findings has been received by the Bureau.
  10. On January 29, 2019 Principal Examiner Terry Fancy by regular and certified mail made a second request to Gray N.G. for payment of the invoice.
  11. The receipt for certified delivery was returned signed for to the Bureau on February 5, 2019. No payment has been received as of this date.
  12. Bureau Rule 02-030 Chapter 190 section 4E states:

    E. Procedures for Corrective Action.

    (1) Within 60 days of receipt by the creditor from the Administrator of the written notice of one or more alleged violations, the creditor shall:

    (a) submit further information or documents relevant to a report of examination or notice of alleged violation which demonstrate to the Administrator that a violation has not occurred;

    (b) by written notice to the Administrator, contest the written notice of alleged violations pursuant to subsection F; or

    (c) proceed under subsection (E)(2) of this Section.

    (1) With respect to a notice of alleged violation not contested by the creditor, the creditor shall, within 60 days of receipt, take the appropriate corrective action required by Section 5 of this Rule. Extension of this time period may be granted by the Administrator for good cause, but such extension shall not affect 5-201(7) or 8-208(2). Failure to comply with this paragraph shall automatically result in notification by the Bureau of the alleged violations to all parties to the transactions pursuant to subsection G.

  13. 9-A M.R.S. § 6-204 provides:

    The administrator may impose a penalty of $5 per day on any person failing to comply with the requirements of sections 6-106.

  14. Gray N.G. desires to resolve this matter by agreement to avoid the necessity of appearing for a hearing.
  15. Gray N.G. admits it has violated 16 C.F.R. § 314.3; 16 C.F.R §. 314(4); 9-A M.R.S. § 3-314; and 9-A M.R.S. § 2-106;
  16. Gray N.G. admits it has violated Bureau Rule 02-030 Chapter 190 section 4E;

Now, therefor, Gray N.G. consents to an entry of an order against it and the Superintendent hereby orders as follows:

The Superintendent hereby orders Gray N.G. to cease and desist from such actions in the future;

Gray N.G. shall pay to the Bureau the sum of $250.00 by check made out to State of Maine Bureau of Consumer Credit Protection as costs for having to bring this action:;

Gray N.G. shall pay an administrative penalty in the amount of $500.00 for violation of Title 9-A by check made out to Treasurer, State of Maine.

Date: May 23, 2019 /s/William N. Lund
William N. Lund
Superintendent
Bureau of Consumer Credit Protection

Attachments

2019-101 Gray N.G. Auto and Truck Sales and Repair Inc Consent Order (DOCX)

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