Idaho Consumer Asset Recovery Fund ICAR

New Fee Requirements for Dealers


In addition to maintaining a vehicle dealer surety bond, effective July 1, 2013, all vehicle and vessel dealers will be required to pay an additional fee of $300 for deposit into the Idaho Consumer Asset Recovery Fund (ICAR) as a condition for initial license issuance or license renewal. This is due to (Idaho Code 49-1608B, C, D, E, and F). Dealers whose license expiration is July 31, 2013 or later will be required to pay this fee at time of renewal. Beginning July 1, 2014, dealers who have operated for at least three consecutive years without any claims against their surety bond or judgments paid against them through the ICAR fund, have the option to operate without a bond, only paying into the ICAR fund. The ICAR fund's fees are subject to annual evaluation; the fee may be suspended upon reaching a maximum threshold.

Why was the ICAR fund established?

For dealers and consumers, the ICAR fund is a mutually beneficial resolution to the long-ago established, and now inadequate, $20,000 bond.

For dealers, the ICAR fund is a much less financially burdensome resolution than the premiums required for much higher bond amounts (a previously proposed solution).

House Bill 0167 Creates ICAR Fund-Important Points:

ICAR is the Idaho Consumer Asset RecoveryFund.

Will require all licensed dealers to pay additional fees as part of their dealer licensing fee. Such additional fee will be set by the ICAR Board annually.

Creates a fund where the ICAR fees will be deposited and continuously appropriated to pay individuals with judgments against licensed vehicle dealers.

For the first year, all dealers will pay into the fund, and maintain the current surety bond they are required to post. After July 1, 2014, those dealers that have been licensed for at least 3 years, who have never had a claim, can discontinue their bond requirement. Bonds will only be required for new dealers, for a 3-year period, provided no claims are made against the dealer.

The current $20,000 bond does not pay many judgments, especially those with multiple judgments against the dealer. The new ICAR fund will increase a single judgment that can be made against a dealer to $50,000, (a 250% increase over current levels) and covers one dealer with multiple claims up to $120,000.

The claimant will be required to get a court judgment in order for the ICAR Board to pay the claim. The offending dealer will be given a chance to rectify the complaint, however if the claimant is not paid, then the dealer will be revoked until the fund is paid back in whole.

This process cannot be used for dealer to dealer complaints, or dealer to auction, auction to dealer, or flooring company to dealer.

The fund will not be available for payout until 7/1/14 to give the fund a year to build up. Once the fund amount reaches or exceeds $2,000,000, the additional fee paid by dealers will be suspended.

The ICAR Board consists of the Dealer Advisory Board members and the department's director or designee.

Effective July 1, 2013 for the fee to be collected, and July 1, 2014 before a judgment can be filed against the fund.

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