VPA Voice Newsletter

The VPA Voice
"Giving a Voice to Industry Members"
August 22, 2014

Administrators Council Meeting

Thank you to those who recently attended our Administrators Council meeting in St. Louis, which was the best attended Administrators Council meeting yet! Overall, it was a productive meeting focused on transparency and compliance. We appreciate your participation and support, especially your willingness to discuss some of the important issues we're facing these days.

From time to time, the VPA Administrative office comes across pertinent information on member and nonmember companies in our industry. Since the meeting we have had quite a bit of positive feedback and a number of people have come forward with information to share on several issues.

From here on out, we intend to start forwarding that information along to you as soon as we identify it.

We recognize that at times this information may be useful for your company, and other times not. We make no judgment or endorsement on the information and are only forwarding it for you to use or to consult with your own legal counsel. Any decisions that you make on that information are solely yours as the VPA cannot dictate market decisions or make any for your company. Instead, we can only encourage compliance and set minimum standards and best practices for our members.

f you would like to discuss this further, or if you have any information you'd like to share feel free to contact Chris Carenza at chris@vpanet.org or 314-667-5654.

Board of Directors Nominations

The VPA is now accepting nominations for the next Board of Directors. If you or someone you know would like to be considered please fill out a nomination form available on the VPA website.

Forms must be signed, scanned, emailed to Chris Carenza at chris@vpanet.org and received by August 29. Only one nomination per company is allowed and the member must be in good standing with the VPA.

Shortly after nominations have been collected, we will be sending out an email with ballots and information regarding voting.

Please contact Chris Carenza at chris@vpanet.org or 314-667-5654 with any questions.

VPA Regulatory/Legislative Updates

New North Carolina Sales Tax Bill Signed Into Law

Attention call centers! North Carolina House Bill 1050 has been signed into law. This new regulation states that call centers must remit sales tax to the North Carolina Department of Revenue on vehicle service contracts sold on and after October 1, 2014. The bill defines "service contract" as a contract where the obligor agrees to maintain or repair tangible personal property or a motor vehicle. This definition includes warranty agreements, maintenance agreements and repair contracts. The tax rate is 4.75% and applies to gross receipts derived from sales of service contracts.

Upon cancellation or rescission of service contract sales, retailers are entitled to receive a refund of the sales tax remitted to the state only when they provide refunds to the purchasers of the rescinded or canceled contracts, including both the purchase price and pro rata share of the sales tax paid by the consumers. To make the transition easier, we have contacted the NC Department of Revenue and have set up a link to the form – NC Form e500 – that the NC DOR recommends for sales tax submissions under the new law.

DC Updates Telemarketer Registration Requirements

Since 2004, Washington DC has required that telemarketing companies be bonded and registered as a "telephone solicitor," but until recently the District of Columbia has never provided the required forms to complete registration. Now the necessary forms are available from the District of Columbia's Department of Consumer and Regulatory Affairs.

However, the District of Columbia provides exemptions from this registration and bonding. The definition of a "telephone solicitor" can be found here and a full list of exemptions can be found here. Keep in mind the exemption(s) only apply if the contracts are consistent with current VPA Standards of Conduct and state vehicle service contract laws.

Per exemption #6 – "A solicitation for the sale of any goods whenever the person allows a 7-day review period and a full refund within 30 days after the return of such goods to the person;" – VPA companies, assuming contracts meet VPA standards and state VSC laws, should be exempt since contracts typically provide a 30+ day full refund period and refunds are required to be issued within 30 days.

You can find the necessary registration and bonding forms here: Foreign Registration Statement and Certificate of Good Standing.