State Regulation of Auto Dealers
Bureau of Regulatory Services
The Bureau of Regulatory Services (BRS) is
responsible for licensing, registering, certifying, and regulating auto
dealers. The BRS regulates auto dealers and assures that they adhere to the
requirements of the Michigan Vehicle Code and all administrative rules.
The Michigan Vehicle Code authorizes the Michigan
Department of State to make investigations and gather evidence against
persons who may have violated, or are about to violate, the Vehicle Code or
an administrative rule. Complaints filed by consumers are handled by a BRS
investigator.
Investigations. The BRS receives consumer complaints against Michigan
auto dealers. When consumer complaints are filed, the bureau will contact
the dealer, by mail, telephone or by a personal visit to the dealership.
Violations. If the dealer agrees that the consumer is indeed entitled
to some sort of compensation, this can come in the form of a refund, buying
a vehicle back, or extending a warranty period.
The BRS may determine that the dealership failed to meet the requirements of the
Michigan Vehicle Code. The BRS may issue a Notice of Noncompliance (NNC)
which is similar to a “ticket.” By issuing an NNC, the Bureau of Regulatory
Services investigator believes there was enough evidence to justify issuing
a violation notice. The dealer can appeal the Notice of Noncompliance to
higher levels in BRS. The appeal must be made in writing and must include
the reason the dealer believes the violation was inappropriately issued.
Supporting documents must be attached.
Penalties. When an NNC has been issued, it is the responsibility of
the Bureau of Regulatory Services to determine what disciplinary action, if
any, should be taken against the dealership or salvage vehicle agent.
Disciplinary action may include:
- Depending on the seriousness of the violations, the past record of the dealership, and the action taken to satisfactorily resolve the matter, disciplinary action may range from a warning letter to suspension or revocation of the dealer or salvage vehicle agent license.
- Typically, before action is taken to suspend or revoke a license, the dealer or agent is given an informal opportunity to meet with BRS representatives to discuss the matter and, hopefully, reach an agreeable conclusion.
- If an agreeable conclusion cannot be reached, an administrative hearing may be held to determine whether it is appropriate to suspend or revoke the license of a dealer.
Violations issued to a
dealer or agent are kept by the bureau indefinitely and are a matter of
public record. Violations remain active on dealer records for two years.
Inspections. The Michigan Vehicle Code requires the BRS to inspect
dealers at least once every four years. This includes the premises and parts
inventories of dealers that engage in vehicle body work or sales of major
component parts. Inspections must be conducted during reasonable business
hours but may be unannounced. Dealer records must be open to BRS
investigators and made available during their inspections.
License Classifications. Dealer licenses are issued by the BRS. See the Dealer
Licensing Section of this Website for information on dealer licensing.