Neb. Admin. Code tit. 248 — Department of Motor Vehicles

Chapter 1 Standards for an Informal Dispute Settlement Procedure

Neb. Admin. Code tit. 248, ch. 1 Standards for an Informal Dispute Settlement Procedure {#sec-248-nac-1 omnilex-key=us-ne-regs-official--title-248--248 NAC 1}

001 SCOPE

001.01 Applicability. These standards apply to all mechanisms as defined in these rules and regulations.

001.02 Incorporation by Reference. The following regulations are adopted, promulgated and incorporated in these rules and regulations by reference:

001.02A. Federal Trade Commission (FTC) regulations 16 CFR Part 703 in existence as of February 22, 1983.

002 DEFINITIONS

002.01 Consumer means the purchaser, other than for purposes of resale, of a motor vehicle normally used for personal, family, household, or business purposes, any person to whom such motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to such motor vehicle, and any other person entitled by the terms of such warranty to enforce the obligations of the warranty.

002.02 Manufacturer's express warranty means the written warranty, so labeled, of the manufacturer of a new motor vehicle.

002.03 Mechanism means an informal dispute resolution procedure adopted by the manufacturer to resolve questions of Jaw and fact relating to disputes between consumers and the manufacturer commencing within one year following the expiration of the express warranty term, or two years following the date of original delivery of a motor vehicle to the consumer, whichever is the earlier date.

002.04 Motor vehicle means a new motor vehicle as defined in Neb. Rev. Stat. 60-1401.02 (8), which is sold in this state, excluding self-propelled mobile homes as defined in section 60-301.

002.05 Warrantor means any person who gives or offers to give a written warranty which incorporates an informal dispute settlement mechanism.

003 DUTIES OF WARRANTOR

003.01 Disclosure. The warrantor shall disclose clearly and conspicuously at least the following information on the face of the written warranty:

003.01A. A statement of the availability of the informal dispute settlement mechanism; and

003.01B. The name and address of the Mechanism, or the name and a telephone number of the Mechanism which consumers may use without charge.

004 MECHANISM ORGANIZATION

004.01 Impartiality. If a manufacturer has established or participates in a dispute settlement procedure, such procedure shall insure that the sytem is impartial, accessible within this state to the buyer and shall operate at no cost to the buyer.

004.02 Influence by Manufacturer or Sponsor. The manufacturer and the sponsor of the dispute mechanism (if other than the manufacturer) shall take all steps necessary to insure that the Mechanism and its members and staff are sufficiently insulated from the manufacturer and the sponsor, so that the decisions of the members and the performance of the staff are not influenced by either the warrantor or the sponsor.

005 QUALIFICATION OF MEMBERS

005.01 Not a Party. No member deciding a dispute shall be a party to the dispute, or an employee or agent of a party other than for purposes of deciding disputes.

005.02 No Direct Involvement. When one or two members are deciding a dispute, all shall be persons having no direct involvement in the manufacture, distribution, sale or service of any motor vehicles. When three or more members are deciding a dispute, at least two-thirds shall be persons having no direct involvement in the manufacture, distribution, sale or service (including warranty service) of any motor vehicle. Direct involvement shall not include acquiring or owning an interest solely for investment, and the acquisition or ownership or an interest which is offered to the general public shall be prima facie evidence of its acquisition or ownership solely for investment. Nothing contained in this section shall prevent the members from consulting with any persons knowledgeable in the technical, commercial or other areas relating to the product which is the subject of the dispute.

005.03 Fair Settlement. Members shall be persons interested in the fair and expeditious settlement of consumer disputes.

006 OPERATION OF THE MECHANISM

006.01 Written Operating Procedures. The Mechanism shall establish written operating procedures which shall include at least the following items specified.

006.02 Notice of Receipt of Dispute. Upon notification of a dispute, the Mechanism shall immediately inform both the manufacturer and the consumer of receipt of the dispute.

006.03 Investigation. The Mechanism shall investigate, gather and organize all information necessary for a fair and expeditious decision in each dispute. When any evidence gathered by or submitted to the Mechanism raises issues relating to the number of repair attempts, the length of repair periods, the possibility of unreasonable use, or any other remedy, the mechanism shall investigate these issues. When information which will or may be used in the decision, submitted by one party or consultant, or any other source tends to contradict facts submitted by the other party, the Mechanism shall clearly, accurately, and completely disclose to both parties the contradictory information (and its source) and shall provide both parties an opportunity to explain or rebut the information and to· submit additional materials. The Mechanism shall not require any information not reasonably necessary to decide the dispute.

006.04 Decision. Within 40 days if the dispute has not been settled, the Mechanism shall, as expeditiously as possible but at least within 40 days of notification of the disupte except as otherwise provided.

006.04A. Render a fair decision based on the information gathered as described in paragraph 006.03 of these rules and regulations, and on any information submitted at an oral presentation. A decision shall include any remedies deemed appropriate under the circumstances, and limited to those remedies available under 16 CFR Part 703.5 (d)(I), including repair, replacement, refund, reimbursement for expenses, compensation for damages, and any other remedies available under the written warranty; and a decision shall state a specified reasonable time for performance;

006.04B. Disclose to the manufacturer its decision and the reasons therefor;

006.04C. If the decision would require action on the part of the manufacturer, determine whether, and to what extent, manufacturer will abide by its decision; and

006.04D. Disclose to the consumer its decision, the reasons therefor, the manufacturer's intended actions, and the information described in section 006.08 of these rules and regulations.

006.05 Settlement. A dispute shall be deemed settled when the Mechanism has ascertained from the consumer that the dispute has been settled to the consumer's satisfaction; and the settlement contains a specified reasonable time for performance.

006.06 Delay Beyond 40 Days. The Mechanism may delay the performance of its duties beyond the 40 day time limit:

006.06A. Where the period of delay is due solely to failure of a consumer to provide promptly his or her name and address, brand name and identification number of the vehicle involved, and a statement as to the nature of the defect or other compliant; or

006.06B. For a 7-day period in those cases where the consumer has made no attempt to seek redress directly from the warrantor.

006.07 Oral Presentation Allowed. The Mechanism may allow an oral presentation by a party to a dispute (or a party's representative) only if:

006.07A. Both manufacturer and consumer expressly agree to the presentation; and

006.07B. Prior to agreement the Mechanism fully discloses to the consumer the following information:

006.07B1. That the presentation by either party will take place if both parties agree, but that if they agree, and one party fails to appear at the agreed upon time and place, the presentation by the other party may still be allowed;

006.07B2. That the members will decide the dispute whether or not an oral presentation is made;

006.07B3. The proposed date, time and place for the presentation;

006.07B4. A brief description of what will occur at the presentation including, if applicable, parties' rights to bring witnesses and/or counsel; and

006.07B5. That each party has the right to be present during the other party's oral presentation.

006.07B6. Oral presentations (either in person or by teleconferencing) are encouraged. Nothing contained in this section shall preclude the Mechanism from allowing an oral presentation, provided all the requirements of this section are met.

006.08 Appeal of Decision. The Mechanism shall inform the consumer, at the time of disclosure of the decision by the Mechanism that if he or she is dissatisfied with its decision or manufacturer's intended actions, or eventual performance, legal remedies may be pursued.

007 RECORD KEEPING

007.01 Records Information. The Mechanism shall maintain records on each dispute referred to it which shall include:

007.01A. Name and address of the consumer;

007.01B. Name and address of the contact person of the manufacturer;

007.01C. Brand name, and description of the vehicle involved and the identification number; and

007.01D. Copies of all documents submitted by either party and copies of disposition taken by the Mechanism.

008 AUDITS

008.01 Annual. The Mechanism shall have an audit conducted at least annually, to determine whether the Mechanism and its implementation are in compliance.

008.02 Contents. Each audit provided for in this section shall include at a minimum the following:

008.02A. The warrantor's or manufacturer's efforts to make consumers aware of the Mechanism's existence; and

008.02B. Analysis of a random sample of disputes to determine the following:

008.02B1. Adequacy of the Mechanism's complaint and other forms, investigation, mediation and follow-up efforts, and other aspects of complaint handling; and

008.02B2. Accuracy of the Mechanism's statistical compilations.

008.03 Auditors. Auditors shall be selected by Mechanism. No auditor may be involved with the Mechanism as a warrantor, sponsor or member, or employee or agent thereof, other than for purposes of the audit.

009 OPENNESS OF RECORDS AND PROCEEDINGS

009.01 Policy. The policy of the Mechanism with respect to records made available at the Mechanism's option shall be set out in the procedures under section 6 (OPERATION AND MECHANISM).

009.02 Copies upon request. Upon request the Mechanism shall provide to either party to the dispute access to all records and copies of records relating to the dispute.

009.03 Reporting requirement to Department of Motor Vehicles. The Mechanism shall furnish to the Nebraska Department of Motor Vehicles a report of the activities of the Mechanism for the calendar year setting forth the number of cases and the disposition of each.

History

Effective 1993-10-27

Chapter 4 Rules and Regulations Governing Bonded Titles for Vehicles, Neb. Rev. Stat. § 60-167

Neb. Admin. Code tit. 248, ch. 4 Rules and Regulations Governing Bonded Titles for Vehicles, Neb. Rev. Stat. § 60-167 {#sec-248-nac-4 omnilex-key=us-ne-regs-official--title-248--248 NAC 4}

001 SCOPE . These rules and regulations govern the Department of Motor Vehicles’ procedures for the administration of bonded certificates of title pursuant to Neb. Rev. Stat. §§ 60-149(1)(d), 60-162(3), 60-167, and 60-197(3).

002 FORMS . All named forms referred to in these rules and regulations may be found on the Department of Motor Vehicles’ web page. Forms may be downloaded, completed and returned to the Department. The forms may also be obtained by calling the phone number listed for the Driver and Vehicle Records Division on the website.

003 DEFINITIONS .

003.01 Currently valid Certificate of Title means the original title immediately prior to the bonded title, showing ownership in the bonded title owner’s name.

003.02 Department means the Nebraska Department of Motor Vehicles.

003.03 Vehicle means a motor vehicle, all-terrain vehicle, minibike, trailer or semitrailer.

004 WHO MAY APPLY . The Department will consider applications for a bonded certificate of title in the following situations:

004.01 No Certificate of Title. When a certificate of title has not previously been issued for a vehicle in this or any other state; or

004.02 No Documentation. When the applicant(s) is unable to provide the documentation required by Neb. Rev. Stat. § 60-149 for a vehicle previously titled in this or any other state; or

004.03 Foreign Bonded Certificate of Title. When the vehicle currently has a bonded certificate of title issued by another state.

005 APPLICATION . Applicant(s) shall complete either an APPLICATION FOR BONDED CERTIFICATE OF TITLE FOR A VEHICLE or APPLICATION FOR A BONDED CERTIFICATE OF TITLE FOR A MOTORBOAT, and submit the completed form to the Department. The Application must be accompanied by the following items:

005.01 Sheriff’s Inspection Certificate. A statement that an identification inspection has been conducted pursuant to Neb. Rev. Stat. § 60-146(3).

005.02 Fee. A fee of fifty dollars ($50.00) pursuant to Neb. Rev. Stat. § 60-160.

005.03 Photograph. A photograph, taken at an angle to show the front and one side of the vehicle.

005.04 Bond. A bond in a form prescribed by the Department and executed by the applicant(s). The APPLICATION FOR BONDED CERTIFICATE OF TITLE FOR A VEHICLE or APPLICATION FOR A BONDED CERTIFICATE OF TITLE FOR A MOTORBOAT must be made within 30 days of the receipt of the bond.

005.05 Proof of Notification of Owner of Record. If there is an owner of record for the vehicle, the applicant(s) shall send a certified or registered letter, return receipt requested, to the owner of record at the last known address. The letter shall state that the applicant(s) is the present owner of the vehicle and request a duplicate title with an assignment to the applicant(s) on the reverse side. The applicant(s) shall submit a copy of the letter and the returned receipt to the Department.

005.05A Other Proof. The Director may in his or her discretion accept other proof that the recorded owner has been notified or that it is impossible, inappropriate, or impracticable to notify the recorded owner.

005.06 Proof of Ownership. The applicant(s) shall provide evidence reasonably sufficient to satisfy the Department of the applicant’s or applicants’ ownership of the vehicle or security interest in the vehicle. Such evidence shall include:

005.06A Documents. A copy of any written document received at the time the vehicle was acquired, such as a bill of sale or cancelled check. If the applicant(s) has no written documents, or the documents are not self explanatory, the applicant(s) must explain on the application why he or she is entitled to ownership despite the absence of any documents.

005.06B Foreign Bonded Title. A bonded certificate of title from another state.

006 BONDED TITLES ISSUED BY OTHER STATES . If a vehicle has an out-of-state bonded title, the applicant(s) may either:

006.01 Foreign Bond. Provide evidence that a bond is currently in force in the former state. Such evidence shall include a copy of the bond and evidence from the bonding company that the bond has not been released.

006.02 Nebraska Bond. If the applicant(s) cannot, or does not, provide such proof, he or she may execute a three-year bond in the form prescribed by the Department according to these rules and regulations.

007 BONDS .

007.01 Purpose. The bond shall be conditioned to indemnify any prior owner and secured party, and subsequent purchaser and secured party, and any successor of the purchaser and secured party for any expense, loss, or damage, including reasonable attorney’s fees, incurred by reason of the issuance of the certificate of title to the vehicle or any defect in or undisclosed security interest upon the right, title, and interest of the applicant(s) in and to the vehicle.

007.02 Issuance. The bond shall be issued by a surety company authorized to transact business in this state by the Nebraska Department of Insurance.

007.03 Value. The bond shall be issued in an amount equal to one and one half times the value of the vehicle as determined by the Department using reasonable appraisal methods.

007.04 Cause of Action. An interested person may have a cause of action to recover on the bond for a breach of the conditions of the bond. The aggregate liability of the surety to all persons having a claim shall not exceed the amount of the bond.

007.05 Period. The bond shall be in effect for three years.

008 APPLICATION FOR RELEASE OF BOND . The holder of the certificate of title may apply to the Department, on the APPLICATION FOR RELEASE OF NOTICE ON BONDED TITLE for the release of the bond requirement and the removal of the notice that the vehicle may be subject to an undisclosed interest, if either of the following criteria is met.

008.01 Surrender of Currently Valid Certificate of Title. Prior to the end of the three-year period, the notice may be removed if a currently valid certificate of title is surrendered to the Department for cancellation; or

008.02 Expiration of Bond. At the expiration of the three-year period of the bond, the notice may be removed unless questions as to the ownership of the vehicle have been raised with the Department. Pendency of an action to recover on the bond will mean the ownership of the vehicle is unresolved.

009 VALUATION FOR BOND . The Department will use the following methods to determine the value of the vehicle for purposes of calculating the amount of bond. If the methods do not agree on the value of the vehicle, the value will be the highest of the determined values. The bond will be issued for one and one half times the value.

009.01 N.A.D.A. Official Used Car Guide; N.A.D.A. Motorcycle/Snowmobile, ATV, Personal Watercraft Appraisal Guide; Kelley Blue Book; Auto Site; Intellichoice or other reputable new or used vehicle pricing guide; and/or

009.02 Other Methods. The Department may, at its discretion, consider any other method or information.

010 BONDED CERTIFICATE OF TITLE .

010.01 Notice. The Department shall include the following statement on a bonded certificate of title and any subsequent title issued as a result of a title transfer while the bond is in effect: NOTICE: THIS VEHICLE MAY BE SUBJECT TO AN UNDISCLOSED INTEREST, BOND NUMBER ...... The Department will assign a bond number to each bond received. The assigned number will be separate from any number the surety company may assign, and the Department’s number will be set in the notice on the title.

010.02 Recall. The Department shall recall a bonded certificate of title if the Department finds that the application for the title contained a false statement or if a check presented by the applicant(s) for fees pursuant to this section is returned uncollected by a financial institution.

010.02A Notice. If a bonded certificate of title is recalled, the Department will send a certified letter informing the title holder that the title has been cancelled, the reasons for the cancellation, and requesting that the title be returned to the Department.

010.02B Cancellation. If a bonded certificate of title is recalled, the Department will cancel the title in its records.

010.03 Titleholder. The first bonded certificate of title will be issued in the name of the applicant(s). When a bonded certificate of title is transferred to a new owner, the bond need not be renewed unless the Department questions its authenticity.

011 FINAL DECISION . The Director’s decision pursuant to these rules and regulations to issue or not issue a bonded certificate of title, to require a bond on an out-of-state bonded title, or to recall a title, are final decisions and may be appealed under the Administrative Procedures Act Neb. Rev. Stat. § 84-917.

012 APPEAL . A declaratory order is subject to review in the manner provided for review of contested cases by the Administrative Procedure Act, Neb. Rev. Stat. §§ 84-901 through 84-920. Specific procedures for appeal are set forth in Neb. Rev. Stat. § 84-917.