Mullen Agency Office Update -
As COVID-19 continues to reek havoc in the business world, it is important that we share with our clients Mullen Agency’s situation. As an ‘essential’ business, our offices remain open.
We are operating during our normal business hours so you can receive the answers and services you need. Although we have a limited staff, all inquiries will receive a response within a reasonable amount of time. We are taking all precautions as advised by local and federal agencies as well as the CDC.
We pray this communication finds you and yours safe and well. Please do not hesitate to contact us regarding any of your insurance needs. Our Team continues to be there for yours.
MULLEN INSURANCE AGENCY INC
337 Oaks Trail #200
Garland, TX 75043
1-800-783-6297 FAX 972-681-7601
***Visit us on FaceBook***
Below are additional Covid-19 announcements and articles that you may find helpful
- TIADA COVID-19 Webpage
- TIADA COVID-19 Notice
- Car Dealer House Calls
- Attention: New Mexico Dealers’
- TIADA Launches COVID-19 Webpage to Help Dealers
- Why Most Auto Dealers, Service Departments Are Open For Business During Coronavirus
- TIADA Working With Governor’s Office
- TIADA Announcement on Executive Order
- BUSINESS INCOME/EXTRA EXPENSE INSURANCE – Does It Apply to COVID-19?
- HIADA April Newsletter
- Bankruptcy Uptick, Be Very Careful with Repossessions
Bankruptcy Uptick, Be Very Careful with Repossessions
By: Guest Blogger
On: 05/21/2020 12:10:32
In the last several weeks, there has been an uptick of new cases where the used car dealer sells . . .
|David L. Pritchard|
The Pritchard Law Firm
In the last several weeks, there has been an uptick of new cases where the used car dealer sells and finances the car, and then the borrower files for bankruptcy. So the question is: What should dealers do if they find themselves in this situation?
The Bankruptcy Courts are clear: upon notice, you need to release the car back to the borrower. The rules state that you must return the car, even if you have reason to think the borrower is in default on the contract for reasons other than payment issues.
If a dealer refuses to release the car to the borrower, this could end up being an expensive decision (and mistake) for the dealer. It regularly costs over $10,000 plus legal fees to get this issue resolved. (Yes, this is money your dealership is going to pay to the debtor and their attorney.) Additionally, if you do not pay, you can be held in contempt of court.
So the lesson here is: The best practice is to release the car back to the borrower.
If you feel there is a reason not to surrender the car after receiving notice that your borrower filed for bankruptcy, you need to act quickly and seek legal advice to make sure your opinion is correct.
As most of you already know, Governor Greg Abbott issued a statewide Executive Order today. His Executive Order supersedes any conflicting orders issued by a local county or city that restricts the essential services allowed by his Order. The new Executive Order is effective 12:01 a.m. April 2, 2020 through April 30, 2020.
In the Executive Order, “essential services” mirror those listed on the Cybersecurity and Infrastructure Security Agency (CISA) website, which include automotive repair and maintenance, rental and leasing of vehicles and financial services.
While we believe the Executive Order does allow for motor vehicle sales, TIADA is seeking confirmation on that issue. We are working with the Governor’s Office and have explained that whether in times of a crisis or not, repairing a vehicle may not be a viable option. There are times when a vehicle may be declared a total loss, parts may not be available, the vehicle may simply be worn out, or it may not be economically feasible to repair it. Stated differently, the only option might be to acquire a different vehicle.
Tomorrow, dealers should continue to operate under their current local order. Prior to the Thursday, April 2nd effective date, we will have more clarity and will inform you at that time what actions you should take.
Thanks, be safe and stay healthy.
Our team is currently working with the Governor’s Office to get better clarity on the statewide order that was issued at 2 pm today, March 31st. Once we fully understand this order we will provide you with an update.
In the meantime, we have received several questions about the CARES Act and its impact on independent dealers. In case you missed it, we are encouraging our members to participate in the NIADA webinar tomorrow, April 1st. TIADA will stay focused on state issues during this time and we will look to NIADA to lead the way on federal and national issues.
Please see NIADA’s email below for additional details and to register for the webinar.
NIADA in partnership with CliftonLarsonAllen invites you to participate in a special webinar “The CARES Act and its Impact on the Independent Dealer” to be held on Wednesday, April 1st at 1:00 pm CDT. NIADA’s Steve Jordan, Shaun Petersen and Chuck Bonanno will be joined by CLA’s David Wiggins to discuss the key provisions of the new bipartisan relief legislation, including the small business loans, and what you should be doing now to take advantage of those opportunities. David will also give you some business and cash flow planning strategies to help you navigate your dealership through these trying times.
Click here to register for this webinar. But hurry! Seats are limited.
We know that several of our members are being affected by city and county governments issuing shelter-in-place orders. Most of these orders include a list of essential and non-essential businesses and include forcing the closure of non-essential business.
Currently, we interpret most of these orders to include service departments and automotive parts & supplies as essential businesses. You should be able to keep your service and parts portion of your dealership open. However, everyone we have talked to in the city and/or county governments with such an order seems to think the sales portion of the dealership is non-essential. Until we are told otherwise, we encourage dealers in those areas to close the sales portion of the dealership during the timeframe specified by each individual city or county.
Today we signed on to a joint letter from TADA sent to the Governor, the Texas Association of Counties, the Conference of Urban Counties and the Texas Municipal League outlining how automobile dealerships should be viewed during this time.
We will forward that letter to our members as soon as it is available.
We do want to emphasize that each county and city may have a different interpretation of an essential and non-essential business so make sure and check with your local officials.
Please Note: We are currently experiencing a higher than normal call volume. If you have questions, we encourage you to email them to: email@example.com. We will respond to your inquiry just as soon as possible and in the order received. Thank you.
Important Email Notice Received From NMIADA On 3-25-20
Good Afternoon Dealers and Sponsors,
While trying our best to keep up with information and address issues, clarify situations and notify you when we hear what is happening in our dealer community rest assured we are here to keep you informed of all that happens. We want to thank you for helping us do this.
A couple of dealers had the State Police show up at their locations. They were given a warning but please know that the fine they could have received is $5000. Please obey the rules and only open your service repair facilities. We can not open for sales. We are working on this with the New Car Dealers Association. Please also note the officers did not take into consideration the fact our dealers have a Motor Vehicle Finance License. They are actively pursuing dealerships. Do not open.
We will discuss this with you all tomorrow further on our daily ZOOM meeting which is posted on our website www.NMIADA.com on our main page and I have also sent an invite for it earlier.
Mientras hacemos nuestro mejor esfuerzo para estar al día con la información y abordar los problemas, aclarar situaciones y notificarle cuando escuchemos lo que está sucediendo en nuestra comunidad de distribuidores este seguro que lo mantendremos informado de todo lo que sucede. Queremos agradecerle por ayudarnos a hacer esto.
Hoy dos dealers desafortunadamente recibieron una visita la policía estatal en sus ubicaciones. Recibieron una advertencia, pero sepan que la multa que podrían haber recibido es de $ 5000. Obedezca las reglas y solo abra las instalaciones de reparación o servicio. No podemos abrir para ventas. Estamos trabajando en esto con la Asociación de Concesionarios de Autos Nuevos. Tenga en cuenta también que los oficiales no tomaron en consideración el hecho de que nuestros concesionarios tienen una Licencia de Financiamiento de Vehículos Motorizados. Están buscando activamente a dealers. Por favor no abra.
Hablaremos mas sobre esto con todos ustedes mañana en nuestra reunión diaria de ZOOM que se publico en nuestro sitio web www.NMIADA.com en nuestra página principal y tambien he enviado una invitación.
Thank you and stay safe!
Gracias y por favor cuidese!