The Amended Motor Vehicle Retail Installment Sales Act

OVERVIEW
HB 1243, which repealed and reenacted RSA 361-A (the Retail Installment Contract law), was signed into law on Aug. 2, 2024, by former Governor Chris Sununu. The provisions of RSA 361-A went into effect upon signing. The New Hampshire Banking Department (NHBD), which has always had authority over retail vehicle sellers, now plans to do an electronic exam of all licensees.

Due to RSA 361-A, the NHBD requires Retail Sellers and Sales Finance Companies to obtain a separate $25,000 electronic surety bond in addition to the dealer bond mandated by the New Hampshire DMV. Through an exclusive partnership with Cross Insurance, a discounted electronic surety bond is available to NHADA members for $125 a year. To request more information about this, click here. 

ENROLLMENT
Businesses will be contacted by the NHBD for the electronic exam, at which point they will enroll in the electronic system. Once the examination begins, you will have 30 days to provide a customer list and an additional 60 days to upload transactional files to support the areas of examination. At this point, there is no way to request your exam. The NHBD will be contacting businesses chronologically by date of licensure.

PROCESS
Following the initial alert, businesses will be assigned an examiner who will remain their point of contact throughout the exam, and:

1.    Get set up in the state’s examination system. You will be prompted to assign a contact person/site administrator for your business and enroll in a third-party authentication system to log in. Note: It is recommended you create more than one contact person/site administrator, so you have a backup in the event of an unexpected leave of absence or other event.

2.    Work through the requested information over the course of 90 days (see the 30/60-day structure previously mentioned). The NHBD will not look at all loans; it will just look for a sample and will look for completeness (bill of sale, trade-in payoff date, etc.). It will also look for who you sold the loan to. To see an entire summary of the examiner’s areas of review, along with the information that will be requested, please see the handout from the Feb. 20, 2025, session by clicking here.

3.    Important Notes:

• Pay particular attention to the column headers on the questions asked on the Excel file (see link above in No. 2). For example, if it is marked SF for sales finance company, it does not apply to retail sellers.
• The NHBD will be reviewing only a small percentage of files, looking for completeness of forms and statutory compliance. Their goal is to conduct short, compact examinations.
• Questions asked throughout the examination are specific to financed deals only at New Hampshire locations; no cash deals or leases. The look back begins with July of 2024.
• Dealer groups may request to have all their businesses examined at the same time. This can be done through one login through the portal.
• The New Hampshire Banking Department has a wealth of information for Motor Vehicle Retail Sellers and Sales Finance Companies here. On this page, you'll also find a very helpful FAQ on HB 1243. Here is a direct link to it.

Q&A
Q: What does closeout look like for this examination?
A: After the information request is completed and reviewed, an exit interview may be conducted in person or over the phone. Following the interview, you will receive an invoice notification for the exam. You will be invoiced per legal entity.
Q: What makes for a quick and efficient exam?
A: Start working with your DMS immediately to see if the requested information can easily be exported (names of the customers, details of the deal, associated financed revenue, etc.).
Q: When does the 30-day/60-day timeline begin?
A: Enrollment does not start the 30-day/60-day timeline, it simply adds you to the portal. The timeline begins when you are assigned an examiner, and you receive your info request.
Q: Outside of the daily costs, are there any other fees?
A: The NHBD cautions you that there are automatic late fees that they do not have control of. They remind you to complete all examinations within the requested time frame.

NHADA worked diligently with the NHBD on this amended legislation, ensuring a more business-friendly approach. It’s important to remember that NHBD examinations are not new — only the format has changed. If you have any questions about this updated process, don’t hesitate to contact NHADA at (603) 224-2369 or support@nhada.com.