Motor Vehicle Retail Sellers and Sales Finance Companies
Motor Vehicle Retail Sellers and Sales Finance Companies Forms and Reports.
NOTICE REGARDING HB 1243 AND RSA 361-A: HB 1243, which repealed and reenacted RSA 361-A, was signed into law on August 2, 2024. The new provisions of RSA 361-A went into effect upon signing. Below, please find a list of questions the Banking Department has frequently been asked about the specific provisions found in the new RSA 361-A.
Please note that the following frequently asked questions and answers are provided as informal guidance only. The Banking Department cannot act as your attorney and cannot provide legal guidance. If you have specific questions, you should consult with a private attorney.
Licensing
All new Motor Vehicle Retail Sellers and Sales Finance Company licensing in New Hampshire is done via the Nationwide Multistate Licensing System (NMLS).
If your company is currently licensed and changes of ownership or status occur the company must update the NMLS. Follow up information may be requested.
Refund Policy
All fees for licenses and registrations are nonrefundable and payable in advance. In the event of an overpayment, a refund request would need to be reviewed and approved by the Banking Department.
Am I a Sales Finance Company?
If you are involved in providing the funds for the loan directly to a NH consumer, or taking the assignment of a loan from a NH retail seller or other sales finance company, or servicing these loans, you must be licensed as a sales finance company. This includes "buy here/pay here" entities that create payment plans for buyers that are buying their inventory, regardless if there is any interest being collected.
Am I a Retail Seller?
If you are completing any of the financing paperwork but never providing the funds for the loan, you would be licensed as a retail seller.
Annual Reports
Sales Finance Companies must provide Annual Reports. Annual Reports must be completed on or before March 31st of each year concerning the operations of the preceding year and then uploaded to NMLS. Surrendering the licensee does not relieve the licensee of this responsibility. Copies of the forms are as follows:
NOTE: With the change to RSA 361-A effective August 2, 2024, Retail Sellers will be required to file an annual report by March 31 of each year for the previous calendar year. More information will be provided by December 31, 2024. An annual report form for Retail Sellers is not yet available.
The New Hampshire Banking Department has created a tutorial video to assist you in completing the Annual Report.
Please note that the video is hosted on YouTube and the New Hampshire Banking Department is not responsible for any advertising or other content on YouTube and the New Hampshire Banking Department does not endorse that content.
View the sales finance company Annual Report tutorial here
Laws
Licensees must be in compliance with all applicable state and federal laws. The main NH law that is applicable to retail sellers and finance companies is NH RSA 361-A, effective until August 1, 2024. Please see below for HB 1243.
Please note that HB 1243 was signed into law on August 2, 2024. Until RSA 361-A is updated on the New Hampshire General Court website, please refer to this link to view the final version of HB 1243.
Please be aware of the new changes to the FTC Standards for Safeguarding Customer Information that went into effect June 9, 2023. All licensees (both retail sellers and sales finance companies) meet the definition of a “financial institution” and must be in compliance with the new standards. The requirements can be found here: https://www.ecfr.gov/current/title-16/chapter-I/subchapter-C/part-314.
Examinations
Sales Finance Companies and Retail Sellers are required to be examined at least every 24 months, though it may be sooner or more frequent as needed. The Consumer Credit FAQ page gives additional information for what is to be expected for examination.