DMV/VERIFI Tip of the Week, #69
Dealers Blocked from Using VERIFI
Although most dealers have successfully transitioned to VERIFI, a small percentage have refused to sign the Facility Participation Agreement and achieve compliance with Part 78 of the NYS DMV Commissioner’s Rules and Regulations. These dealers may appear to have a valid dealer’s license and may also have a supply of Secure Paper MV-50’s that were issued before VERIFI was launched.
Whenever a compliant dealer buys or sells a vehicle wholesale to or from one of these non-compliant dealers, it will complicate the movement of vehicles between the dealers’ inventories. In most cases, the transaction will be blocked entirely.
The conditions that will block a dealer from participating in VERIFI are as follows:
- Dealer License Expired
- Dealer’s License Suspended
- Dealer’s License Revoked
- Dealer Out of Business
- Dealers Denied Renewal
We strongly urge that dealers confirm the status of the dealer’s license for any dealer they do business with prior to finalizing a wholesale transaction. The status of a dealer’s license can be checked at: https://process.dmv.ny.gov/FacilityLookup/. If the facility is not listed they are not active, and you should not proceed with the transaction.
These issues can be avoided if the selling facility is performing the transactions at the time of sale in VERIFI. If the buying facility is not valid VERIFI will display the following error: “The transfer cannot be submitted for the purchasing facility. Please contact DMV.” The transaction should be stopped until the buying facility corrects the matter with DMV.
The VERIFI Help Desk is limited in what they can do to rectify these issues. The DMV will only intervene on these transactions when the aggrieved dealer files an official complaint against the non-compliant dealer.
Complaints against non-compliant dealers can be made at: https://dmv.ny.gov/contact-us/report-problem-dmv-regulated-automotive-business.