CAPSS  Compliance Pathway
Colorado Automobile/Powersport Support Services, LLC 
April  2015
Colorado Flag2     
 
  
Greetings! 
 Highlights in this newsletter include:

Electronic Leins and Titles (ELT) are here!  The goal of ELT is to provide for the electronic transmission of title and lien transaction data between authorized Service Providers and the State.  The electronic transmission of data is a benefit to the participating lienholders or lenders, the vehicle owners, the local County Motor Vehicle offices, and the state.  More information and links to state information are included in this newsletter.

Along with electronic liens and titles, the state has modified the DR 2395, Application for Title and/or Registration (revision date 4/2/15).  The cut off date for using the old DR 2395 (2/22/11) is July 3, 2015.

The Auto Industry Division will be assigning two investigators to work advertising due to the serious amount of violations, especially in regards to D&H (delivery and handling) rules.  Review the new rules listed in this newsletter to make sure you are in compliance.

Salesperson Mastery Exam Seminar  - This is an on-demand webinar that can be accessed from any computer or tablet, anywhere, at any time, day or night.  If your salesperson needs to take the Mastery Exam, this seminar will help guide them through the confusing rules and regulations they must know to pass the exam.  The seminar also offers two practice exams, which test the student's knowledge and refines their test taking skills. 

 

Questions regarding titling of off-highway vehicles?  Crystal Soderman, Colorado Titles and Registrations, is available to answer these questions for dealers.  You may contact her at: crystal.soderman@state.co.us
or: 303.205.5875.

We wish you a great 2015 and thank you for your continued support of CAPSS!

Mary Marvin & Connie Hatch
CAPSS LLC

Electronic Lien & Titles

Participation in ELT is voluntary! 

Frequently Asked Questions

What is the Electronic Lien and Title Program?

a. The Electronic Lien and Title Program is a method by which the State of Colorado Department of Revenue DMV and lending institutions (lienholders) can exchange vehicle and title information electronically. The State transmits essential identifying information electronically to the Service Provider who communicates with the lienholder, thus eliminating the need to print and mail paper titles. Once the lien has been satisfied, the lienholder notifies the Service Provider who sends an  electronic message releasing the title - at which point the State prints and mails a paper title to the vehicle owner or designated party. The lender can specify an alternate recipient as needed, such as when an insurance company or dealer satisfies the lien.

b. This process eliminates the paper title for duration of the lien. Both the lending  organizations and the State benefit from lower costs associated with processing, mailing, filing and retrieving paper titles.

c. Lenders that participate in ELT will transition gradually to ELT. Existing paper titles will remain as-is; when new transactions are submitted for an ELT provider, those new records will be stored electronically.


How does this work?

a. The Dealer or Lender provides the State a title application and accompanying documentation. Application forms are processed at county offices. Out of state lenders should work with the county office where the vehicle is registered.

b. Lenders must provide their ELT# to the dealer - this ELT# must be included on the Title Application (See new DR 2395, revision date 04/02/15).  If the ELT# is not present, the application will be processed as it is today, and a paper title generated.

c. The State records the lien and sends the Service Provider an electronic message with similar titling information as appears on a paper form. This information includes a description of the vehicle and the name and address of the vehicle owner. 

d. The Service Provider receives the message from the State, formats it, and makes it available to the lender.

e. The lender works with the Service Provider to validate the lien
information.

f. Later, when the loan is paid off and the lien is satisfied, the lender communicates with the Service Provider to release the lien.

g. The State will print the clear title and mail it to the registered owner. The lender can specify an alternate recipient as needed, such as when an insurance company or dealer satisfies the lien.

The Colorado ELT program also has provisions for requesting paper titles with a lien. Service Providers support all the Colorado ELT program features.


What are the benefits of the Electronic Lien and Title Program?

a. The electronic lien and title system allows lienholders to reduce the handling, storage, and mailing costs associated with paper titles by replacing them with electronic titles. Lienholders who join the program no longer have to:
* Retrieve a title from a conventional file when the lien has been satisfied.
* Physically satisfy (sign off) a lien on a title.
* Mail the title to the registered owner.
* Apply for a duplicate title when the original title has been lost.

b. Other benefits:
* Reduction in title fraud.
* Reduction of title paper usage.
* Faster notification of lien satisfactions.
* Reduction in storage of title documents.

Additionally, electronic lienholder customers who have satisfied their lien obligations will receive clear paper titles faster.

How do I apply to be a Participating Lender?

a. After executing an agreement with a Service Provider, complete the Colorado Electronic Lien and Title Lender Application. The State will issue a "E" Number which will be used to complete Title applications for the Participating Lender.

How do I obtain a paper title for a vehicle taken in trade when paying off a lien, if title is electronic?

When a dealer pays off a lien for a vehicle taken in trade with an electronically held lien title, the lienholder sends an electronic transaction through the Service Provider to the State with the name and address of the dealer. The State will remove the lien and mail the paper title to the dealer.


 DR 2395 Application for Title and/or Registration (rev. 4/2/15)

The state has modified the DR 2395 as of April 2, 2015.  The last date to use the old DR 2395 (2/22/11) is July 3, 2015.

To view the Colorado DOR Dealer Training Video:  

 
Advertising Rules

Advertising Rules were changed as of December 30, 2014.


The following changes were made:
*The term "Computer Display" is defined to mean any electronic device capable of presenting a commercial message.

*Rule 6 was modified to state - A used vehicle shall not be advertised in any manner that creates the impression that it is new.

*Rule 7 was modified to remove taxi cabs and police vehicles. Salvage, rebuilt from salvage, and flood vehicles must be included in an advertisement if the dealer has knowledge of that history.

*Rule 13 was modified to clearly state that all government fees or taxes are clearly excluded.

*Rule 14 was modified to target ads that combined rebates. It states - When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are obtainable, when in fact they are not.

Three new rules were added:
*Rule 17 If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.

*Rule 18 Statements, such as "Everybody Financed," "No Credit Rejected," "We Finance Anyone," and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true.

*Rule 19 Bait advertising, as defined in ? 18-5-303, C.R.S., is not allowed.

Following is the full Advertising Rules as amended.

ADVERTISING The statutory basis for this regulation is 12-6-118(3)(k), C.R.S. REGULATION 12-6-118(3)(k) Advertising shall be construed to be misleading or inaccurate in the following particulars:

  • Rule 1. Advertising a motor vehicle which is not in operable condition unless specifically disclosed.
  • Rule 2. Advertising which would imply the dealer is going out of business when such is not the case.
  • Rule 3. Advertising a specific motor vehicle for sale or lease with price or terms quoted, without fully identifying the vehicle as to year, make, model and dealer stock number. Such vehicle shall be willfully shown and sold at the advertised price and/or terms while such vehicle remains unsold or unleased, for a period of five days following the last date the ad was published, unless the ad states that the advertised price and terms are good only for a specific time and such time has elapsed. If a specific number of motor vehicles is advertised, such vehicles must have been invoiced to the dealer .
  • Rule 4. Using a picture or photograph of a vehicle in advertising when the picture or photograph is not the same make, year and equipment actually being offered for the price or terms advertised.
  • Rule 5. Advertising in such a manner which utilizes an asterisk or other reference symbols to contradict or materially change the meaning of any advertising statements.
  • Rule 6. A used vehicle shall not be advertised in any manner that creates the impression that it is new.
  • Rule 7. Advertising motor vehicles which are known by the dealer to be salvage, rebuilt from salvage, or flood vehicles, which are not so identified in the advertisement.
  • Rule 8. Advertising in any manner to imply that a purchaser will be receiving benefits of any existing loan on a vehicle when no such benefit exists.
  • Rule 9. Advertising or making statements that are not true or that cannot or will not be honored. Advertising which creates the false impression that the purchaser will determine the terms, price or conditions of a sale, such as "write your own deal," "name your own price," "no reasonable offer refused," and "we will not be undersold." Advertising any item as "free" which is associated with or conditioned upon the negotiated sale of a motor vehicle.
  • Rule 10. Advertising sales prices for used motor vehicles which claim or imply a specific savings or discount without clearly and accurately documenting the basis for the savings or discount.
  • Rule 11. Advertising any reference to "dealer cost" or "invoice" price. Advertising the word "wholesale" in connection with the retail offering of motor vehicles.
  • Rule 12. Advertising a specific trade-in amount or range of amounts without, in fact, offering such a trade-in amount and, failing to disclose or advertise the M.S.R.P., sale price, or capitalized cost of the vehicle from which the trade-in will be deducted.
  • Rule 13. Advertising the price of a vehicle without including all costs to the purchaser at the time of delivery, except sales tax, finance charges, cost of emissions test, other governmental fees or taxes, and transportation costs, incurred after sale, to deliver the vehicle to the purchaser at the purchaser's request.
  • Rule 14. Advertising any specific discount or rebate on new motor vehicles without the manufacturer's suggested retail price conspicuously stated in the ad. When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are obtainable, when in fact they are not.
  • Rule 15. Advertising any qualifying statement or disclosure which is not clear, conspicuous, and readable, and which is not adjacent to the offer or terms it qualifies, and in less than eight-point type.
  • Rule 16. Advertising any contest that offers to prospective participants the opportunity to receive or compete for gifts or prizes without such advertisement containing the words "no purchase or payment of any kind is necessary to enter or win this contest" in bold-faced type and at least ten-point type.
  • Rule 17. If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.
  • Rule 18. Statements, such as "Everybody Financed," "No Credit Rejected," "We Finance Anyone," and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true.
  • Rule 19. Bait advertising, as defined in ? 18-5-303, C.R.S., is not allowed.
     
Mastery Exam Seminar
godly-enter-key.jpg New Salesperson?  CAPSS on-demand webinar guides the student through the confusing rules and regulations they must know to pass the exam.  The seminar offers two practice exams which test the student's knowledge and refines their test taking skills in preparation for the State's Mastery Exam.

This Seminar can be accessed from any computer or tablet, anywhere, at any time, day or night.  We provide the student with the knowledge and study tools to pass this examination!

To attend this seminar:
  • Go to: www.capsscolorado.com (that's CAPSS - with two SS!)
  • Select Mastery Exam
  • Select New Student Registration
  • Register and pay with a credit card
  • Start the seminar!

The student has access to the seminar for two days from their registration.  After learning the material, the student may take the state's exam on-line at:

 

The exam must be administered by a licensed dealer or an approved third party provider (CAPSS). 


Call us for questions or examination appointments.

  
Price: $75.00
                      
Upcoming Training Seminars

Mastery Exam Seminar:
We guide you through the confusing rules and regulations that you must know to pass the state's exam.  We also offer practice exams in both the in-person and on-demand seminars.  These practice exams test your knowledge and refine your test taking skills in preparation for the state's Mastery Exam. 
 
We offer
  • In-person seminars.  This seminar is an 8-hour class.  The Mastery Exam is administered after the class at no extra charge.  Register at www.capsscolorado.com
  • On-demand webinars.  This Mastery Exam on-line, on-demand seminar can be accessed from your laptop, PC, or tablet at your convenience.  It is available is available on-line 24 hours a day. Register at  www.capsscolorado.com  

NOTE:  If you are a dealer or wholesaler applicant, you may need the Pre-Licensing Certification course which is an 8-hour course.  Click here for more info:  Pre-Licensing Seminar

 

 
The following seminars are coming soon as On-Demand classes that can be taken on any computer or tablet.  Check with us for release dates!

Getting the Car Deal Rolling:  This seminar concentrates on how to complete the basic car deal paperwork involved in a sales transaction.  It includes an introduction to the required sales documents for motor vehicles and power sport sales, and to title transfer documents.  This seminar is uniquely formatted for the novice dealer/and or title clerk.   

 

 
Title Document Training:  This seminar includes basic title documents for incoming and outgoing title transfer, various title forms, applications for title, how and why to do a VIN inspection, title assignments, odometer disclosures, secure and verifiable identification and more.

 

 

The Well-Informed Dealer - Do You Think You Know It All?  Are you complying with the Federal Truth-in-Mileage Act?  Do you know what damage disclosure is required to be furnished to your customer?  If you did not know the vehicle you sold was previously salvaged, do you have to buy the vehicle back?   What charges can be added to an advertised price?  This seminar covers numerous items required for compliance of industry's rules and regulations, including OFAC,  Red Flags, and FTC Privacy Notices.  Dealers taking this class will be prepared for a compliance inspection by the Auto Industry Division.  

 

 

To register for any of these seminars, go to www.capsscolorado.com.    To schedule a class at your dealership, call Mary Marvin (Front Range) 303-478-2538; or Connie Hatch (Western Slope) 970-209-7499.
QUESTIONS ?
Do you have questions regarding odometer laws, salvage vehicles, repossessions, or more?  Benefits of your membership include phone consultations - so don't hesitate to pick up the phone and ask those questions.  Not a member?  Call now to join, only $125 a year!

Our newsletters will advise you of form updates by the state, legislative changes, and other items of interest, including compliance tips for your review.

We also offer continuing education to dealers and their employees.  We strive to give you the best education at reasonable prices.  Classes are offered on the Front Range (Lakewood) and the Western Slope (Montrose) as well as occasional classes in other parts of the state.

For more about our seminars, check out the Upcoming Training Seminars section of this newsletter, or check our web site on-line at www.capsscolorado.com.

And give us a call for all your form and supply needs!

If you have ideas on how we can better support you, please contact us! 


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Quick Links
CAPSS HOME PAGE

CAPSS MEMBERSHIPS & TRAINING
www.capsscolorado.com

CAPSS MASTERY EXAM SEMINAR 

Auto Industry Division-Mastery Exam

Colorado Auto Industry Division

  

 
ABOUT US

CAPSS is a company owned and operated by experienced former investigators of the Colorado Department of Revenue, Auto Industry Division.  Connie Hatch retired as a Field Investigator, after 27 years of state service.   Mary Marvin retired as a Supervisor Investigator, after 32 years of state service.

Contact us if we can serve you!


Front Range:  
Mary Marvin 
303.478.2538                                

Western Slope:  
Connie Hatch 
970.209.7499 
 
 
 Colorado Automobile/Powersport Support Services, LLC
CAPSS
 
 
 
Contact us if we can serve you!
 
Front Range:   Mary Marvin  (303) 478-2538    Western Slope:   Connie Hatch  (970) 209-7499 
CAPSS LLC