Effective State Changes
CONNECTICUT
SB 413 revises numerous motor vehicle statutes recommended by the Department of Motor Vehicles. This bill requires motor vehicle dealers to include any dealer conveyance or processing fee in the advertised or quoted vehicle price. Effective, in part immediately.
ILLINOIS
Illinois HB 228 amends the Consumer Fraud and Deceptive Business Practices Act to prohibit advertising, displaying, or offering a price for goods or services that excludes mandatory fees or surcharges, other than governmental taxes. The law establishes disclosure requirements and exceptions for certain industries and providers. While the bill is not directed at consumer lending calculations or disclosures, dealers and other businesses that advertise consumer pricing may wish to review their advertising and fee disclosure practices in light of the new requirements. Effective July 1, 2027.
HB 5290 modernizes the Sales Finance Agency Act by expanding licensing, examination, and enforcement requirements for sales finance agencies and increasing certain civil penalties for violations, which includes purchasing a retail installment contract that violates the Retail Installment Sales Act or the Motor Vehicle Retail Installment Sales Act. The bill generally applies to non-bank purchasers and holders of Illinois retail installment contracts, while expressly exempting credit unions, banks, and certain other depository institutions from its provisions. Effective June 26, 2026.
SB 315 creates the “Artificial Intelligence Safety Measures Act”, requiring certain large AI developers to implement and disclose AI safety and risk mitigation frameworks, report critical safety incidents, and comply with new governance requirements. While the law primarily applies to large AI developers, it reflects the growing regulatory focus on AI oversight and may be of interest to companies evaluating or deploying AI tools. Effective January 1, 2027.
SB 3561 establishes the “Buy-Now-Pay-Later Consumer Protection Act”. The law defines a “buy-now-pay-later loan” as closed-end credit provided to a consumer at the time of a transaction in
connection with a purchase of goods or services that is payable in four or fewer installments or within 120 days of origination. The law requires lenders of these loans to be licensed with the Department of Financial and Professional Regulation, exempts these loans from other installment and payday lending laws, and excludes merchants who facilitate loans to consumers from licensed lenders. Effective June 25, 2026.
INDIANA
On July 1, 2026, the Auto Dealer Services Division of the Indiana Secretary of State announced an adjusted maximum Documentation Preparation Fee of $261.72—raising it from $251.05. Effective July 1, 2026.
On June 24, 2026, the Indiana Department of Financial Institutions’ (“DFI”) Consumer Credit Division released Advisory Letter 2026-01. The DFI reminds motor vehicle dealers that, upon prepayment in full of a consumer credit sale, the seller/creditor or the creditor’s assignee is required by law to promptly refund the consumer for any separate charge made for credit insurance or GAP. They advise purchasers of consumer credit sales to review their internal policies and procedures relating to their legal obligations and to ensure dealer agreements clearly identify the party contractually obligated to make refunds. Effective immediately.
MINNESOTA
HF 4188 expands the definition of a “Consumer small loan lender” to include arranging a small loan by facilitating, marketing, lead-generating, underwriting, or collecting on said loan, amongst other consumer protections. Entities engaged in these types of activities should consider whether they need to obtain a license under the Regulated Loan Act, if not already licensed. Effective, in part immediately.
NEW HAMPSHIRE
HB 1207 restructures the examination fee system in New Hampshire by requiring credit unions, trust companies, and family trusts to pay an annual fixed fee instead of a fee per examination, while raising licensing fees for small loan lenders, mortgage bankers, servicers, and brokers, as well as money transmitters. Effective in part on October 1, 2026.
NEW JERSEY
New Jersey revamped their data protection laws with AB 5328. The bill bans the sale of sensitive personal data, mandates annual registration with the state for data brokers and data collectors engaged in selling or licensing personal data of New Jersey consumers, and establishes fines for noncompliance with the Act. Effective in part June 30, 2026.
PUERTO RICO
HB 932 amends the Small Personal Loans Act to reduce and modernize the financial requirements imposed on licensed small consumer loan lenders in Perto Rico. The prior law required a lender to maintain $200,000 in liquid assets to obtain and maintain a small-loan license; this threshold has been adjusted to $50,000 during the first two years. Additionally, the law requires that each licensee publish the maximum rate for small loans issued during the preceding week in a newspaper of general circulation, its website, or social media page. Effective June 12, 2026.
RHODE ISLAND
SB 2330 and identical bill HB 7452 authorize the Rhode Island Division of Motor Vehicles to create an electronic vehicle registration, titling, and lien system. Effective July 1, 2026.
SB 2347 and identical bill HB 8213 update rules on dealer reimbursement for manufacturer warranty work and extend certain protocols applicable to motor vehicle manufacturers to their distributors and factory branches. Effective October 1, 2026.
VERMONT
HB 211 updates data privacy laws by requiring data brokers to register with the state, disclose data practices, verify users, prohibit the abuse of data, and notify the state of a security breach. Effective in part on July 1, 2026.
SB 71 creates the “Vermont Data Privacy and Online Surveillance Act”. This bill allows consumers the right to access, correct, delete, or opt out of data sales featuring their personal data. The bill specifies the businesses which fall under its scope. Effective January 1, 2028.
