Author: andy

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.

Effective State Changes

CONNECTICUT

Senate Bill 4 updates the Connecticut Data Privacy Act and strengthens consumer privacy rights by requiring data brokers to register with the state and enabling consumers to request data deletion. Effective October 1, 2026.

IOWA

House File 2756 requires the licensing of service contract companies that work on motor vehicles and residential spaces. Effective January 1, 2027.

KENTUCKY

Senate Bill 219 updates Kentucky’s deferred deposit transaction laws by increasing the maximum allowable proceeds a customer may receive from $500 to $600, with an annual adjustment based on the Consumer Price Index, capped at $850. The bill also increases consumer protections and deferred deposit transaction database oversight. Effective July 15, 2026.

LOUISIANA

House Bill 545 increases the maximum origination fee that lenders can charge on a consumer loan or revolving account from $50 to $75. Effective August 1, 2026.

The Click-to-Cancel Act—established by House Bill 750—requires businesses offering automatic renewal contracts to provide advance renewal notices, clearly disclose terms, obtain consumer consent, and provide easy, low-cost cancellation methods. Effective January 1, 2027.

House Bill 888 updates dealer inventory plate rules by allowing dealers to use them on courtesy loaner vehicles, extending plate validity from five to ten days, and permitting rear-window display, amongst other provisions. Effective June 1, 2026.

Senate Bill 72 mandates a new statewide electronic system for vehicle titling, registration, and lien recording. Immunity from civil liability is provided for good-faith electronic transactions. Effective August 1, 2026, with provisions phased in by 2028 and 2031.

Senate Bill 386 creates the Louisiana Data Privacy Act, which dictates how businesses must handle residents’ personal data and grants consumers rights to access, correct, and delete their personal data and opt out of data sales and targeted ads. The law will be enforced by the Louisiana Attorney General. Effective January 1, 2027.

MARYLAND

House Bill 306 prohibits a manufacturer, distributor, or factory branch from taking negative action against a vehicle dealer for disclosing pricing information on their website, including the manufacturer’s minimum advertised pricing and the dealer’s ability to offer lower prices. Effective October 1, 2026.

 

Reminders

IOWA

HF 2329 and SF 2216 replace the tiered structure of Iowa’s Regulated Loan Act with a 3% per month (36% annual) interest rate for all loans under $30,000. Effective July 1, 2026.

NEBRASKA

LB 717 expands the scope of the Nebraska Installment Loan and Sales Act by increasing the threshold for covered consumer loans from $25,000 to $100,000. Effective July 17, 2026.

OKLAHOMA

The Department of Consumer Credit published the changes in dollar amount brackets for Retail Installment Sales and Consumer Loans. Effective July 1, 2026.

TEXAS

The Texas Office of Consumer Credit Commissioner published dollar amount brackets and ceilings subject to adjustment in the Texas Finance Code for Retail Installment Sales and Consumer Loans. Effective July 1, 2026.

Effective State Changes

ALABAMA

Following trends seen around the country, HB 351 creates the Alabama Personal Data Protection Act which establishes consumer rights regarding personal data use. Businesses would be subject to the law if they meet certain thresholds and would be required to allow consumers to access, request removal of, or opt out of certain uses of their personal data. Effective May 1, 2027.

GEORGIA

SB 384 allows owners of certain vehicles an optional five-year registration period instead of annual renewal. It also establishes new fees and other requirements for selecting the five-year registration option. Effective July 1, 2027.

IOWA

Iowa Governor Kim Reynolds signed identical bills HF 2329 and SF 2216 into law on May 2, 2026. These bills replace the tiered structure of Iowa’s Regulated Loan Act with a 3% per month (36% annual) interest rate for all loans under $30,000. In addition, the service charge for these loans has been updated to be the lesser of either 3% of the amount financed or $100. Effective July 1, 2026.

HF 2485 updates the motor vehicle dealer laws in the state of Iowa. This bill allows electronic signatures for odometer disclosures, amends dealer record storage requirements, and updates remote seller rules. Effective July 1, 2026.

MARYLAND

SB 582 prohibits unsolicited “live checks” or other negotiable instruments from being sent to consumers. Convenience checks tied to an existing credit line and pre-screened unsecured credit offers are exempt from its provisions. Effective October 1, 2026.

SB 784 repeals a Maryland law that had broadly exempted certain assignees or acquirers of mortgages, mortgage loans, and installment loans from state licensing requirements. The bill is intended as a clarifying corrective measure and removes that exemption from the Financial Institutions Article. Effective July 1, 2026.

MINNESOTA

The Minnesota Commerce Department published the periodic adjustment in dollar amounts in the Regulated Loan Act, effective July 1, 2026, through June 30, 2028. The adjustments are based on a 10% increase. The dollar amount adjustments include:

§47.59 Subd. 3	Principal Subject to 33% Interest	$1,500.00
§47.59 Subd. 3	Minimum Refund	$10.00
§47.59 Subd. 6	Default Charges	$10.40
§47.59 Subd. 6	Loan Administration Fee Threshold	$8,640.00

Effective July 1, 2026.

NEBRASKA

LB 972 creates the Recreational Vehicle Industry Regulation Act. Amongst other items, this bill requires agreements between dealers and manufacturers in order for new RVs to be sold in the state, requires warrantors to pay dealers fair compensation for warranty-related labor and parts, and updates registration, safety, and other laws related to motor vehicles. Effective three calendar months after the legislative session ends, estimated June 17, 2026.

 

Correction

TEXAS

Alternate Consumer Loans Subchapter F – §§342.251 – 342.252

Loan Amount	Acquisition Charge plus Installment Acct Handling Charge
Under $30:	$1 for each $5 cash advanced
From $30 up to $35:	12.5% cash advance plus $3 per month
From $35.01 up to $70:	12.5% cash advance plus $3.50 per month
From $70.01 up to $100:	12.5% cash advance plus $4 per month
From $100.01 up to $920:	12.5% cash advance, up to max charge of $130; plus $4 per month for each $100 cash advance
From $920.01 up to $1,840:	12.5% cash advance, up to max charge of $130; plus $4 per month for each $100 cash advance

Effective July 1, 2026.

 

Effective State Changes

ARIZONA

HB 2323 amends Arizona law to now include lessees within the definition of “consumer” under motor vehicle warranty laws, granting them the same rights as retail owners. Effective approximately September 25, 2026.

IDAHO

HB 742 modernizes the vehicle titling and lien system in Idaho. Effective July 1, 2026.

INDIANA

HB 1153 mandates that motor vehicle dealers verify and retain buyer identification documentation. Additionally, the bill creates a new Class A infraction if a dealer is operating without a state license. Effective July 1, 2026.

KENTUCKY

Following trends seen around the country, HB 648 updates and strengthens protections for obtaining reimbursement from manufacturers for warranty work. Beyond extending claim submission deadlines, the bill also makes it illegal for manufacturers to deny payment for replacement parts without thorough justification. Effective July 14, 2026.

Governor Andy Beshear signed SB 110 into law on April 13, 2026. The new law requires an electronic title, registration and lien system by January 1, 2027. In addition, the new system will allow for renewal notices via email or text, expands payment options for taxes and fees, and updates certain motor vehicle fees. Effective immediately.

SB 158 clarifies that vehicle protection products are not insurance and that it is illegal to condition credit or vehicle sales based on purchasing these products from motor vehicle dealers. Effective January 1, 2027.

MAINE

LD 2179 institutes a two-year pilot program to license online used car dealers that do not have a physical location in Maine and operate only digitally. Effective July 29, 2026.

MISSISSIPPI

The Small Loan Regulatory Law in Mississippi has been amended by SB 2712 to allow licensed lenders to charge a fee to purchase non-filing or nonrecording insurance instead of the cost to record a loan security instrument with the state. Effective July 1, 2026.

OKLAHOMA

The Department of Consumer Credit published the changes in dollar amounts which will become effective July 1, 2026. Included in the adjustments are the following:

Retail Installment Sales, §2-201:

The greater of:

30% of the amount financed up to $2,040; plus

21% of the excess to $6,800; plus

15% of the remainder to $73,400.

OR  21% Simple Interest

The dollar amounts under §3-508(A) remain the same. The allowable closing fee increases from $190.41 to $196.18.

For loans subject to §3-508B of the Oklahoma Code the maximum charge structure is:

Loan Amount	Acquisition Charge	Handling Charge
Up to $202.43		$6.75 per $33.75 of principal
$202.43-$236.25	1/10 of the amount of principal	$20.25 per month
$236.26-$472.50	1/10 of the amount of principal	$23.63 per month
$472.51-$675.00	1/10 of the amount of principal	$27.00 per month
$675.01-$1,012.50	1/10 of the amount of principal	$30.38 per month
$1,012.51-$1,350.00	1/10 of the amount of principal	$33.75 per month
$1,350.01-$1,687.50	1/10 of the amount of principal	$37.13 per month
$1,687.51-$2,025.00	1/10 of the amount of principal	$40.50 per month
$2,025.01-$2,500.00	1/10 of the amount of principal	$50.00 per month
$2,500.01-$3,125.00	1/10 of the amount of principal	$62.50 per month
$3,125.01-$3,750.00	1/10 of the amount of principal	$75.00 per month

The maximum delinquency charge for consumer credit sales and consumer loans will increase from $33.00 to $34.00. Effective July 1, 2026.

Governor Kevin Stitt signed SB 546 into law on March 20, 2026. The law gives Oklahoma consumers the right to access, correct, delete, and opt out of targeted advertising and data sales. Effective January 1, 2027.

OREGON

HB 4116 clarifies that Oregon’s consumer finance loan laws do not limit rights under other lending laws and excludes certain federal interest rate amendments from applying in Oregon. The law “opts out” of the Depository Institutions Deregulation and Monetary Control Act of 1980 also known as DIDMCA. Effective June 5, 2026.

SOUTH CAROLINA

The Department of Consumer Affairs released its biannual dollar bracket adjustment effective from July 1, 2026, through June 30, 2028. Among the dollar bracket adjustments are:

• The maximum amount for consumer credit sales, consumer leases, and consumer loans increases from $127,500 to $135,000. (§2.104(1)(e), §2.106(1)(b), and §3.104(d), respectively).
• The maximum delinquency charge for sales and loan transactions increases from $25.50 to $27.00. (§2.203(1) and §3.203(1), respectively).
• The minimum delinquency charge for sales and loan transactions increases from $10.20 to $10.80. (§ 2.203(2) and §3.203(2), respectively).
• The maximum loan term thresholds increased from $5,100 and $1,530 to $5,400 and $1,620 (§3.511).

Effective July 1, 2026.

TEXAS

Released in February 2026, the dollar amount brackets and ceilings subject to adjustment in the Texas Finance Code will increase as follows:

Consumer Loans – §342.201

(Add-On Rates)

$18 per $100 per annum of the cash advance to $2,760 plus,

$8 per $100 per annum of the excess to $23,000

OR

(Simple Melded Rates)

30% per annum of the cash advance to $4,600 plus,

24% of the excess to $9,660 plus,

18% of the remainder to $23,000

Alternate Consumer Loans Subchapter F – §342.251

Loan Amount	Acquisition Charge plus Installment Acct Handling Charge
Under $30:	$1 for each $5 cash advanced
From $30 up to $35:	12.5% cash advance plus $3 per month
From $35.01 up to $70:	12.5% cash advance plus $3.50 per month
From $70.01 up to $100:	12.5% cash advance plus $4 per month
From $100.01 up to $920:	12.5% plus $4 per month for each $100 of the cash advance; Max Acquisition Fee $130
From $920.01 up to $1,840:	12.5% plus $4 per month for each $100 of the cash advance; Max Acquisition Fee $130

Retail Installment Sales (“Other Goods”) – §345.055

(Add-On Rates)

$12 per $100 per annum of the principal balance to $4,600 plus,

$10 per $100 per annum of the excess to $9,200 plus,

$8 per $100 per annum of the remainder.

Effective July 1, 2026.

UTAH

Governor Spencer Cox signed HB 57 on March 23, 2026. This bill exempts street-legal ATVs from certain state registration requirements, and makes technical changes to Utah’s motor vehicle law and related tax laws. Effective in part May 6, 2026.

HB 228 adds and defines new categories of motor vehicle title brands and requires the Motor Vehicle Division to check VINs against the NMVTIS to identify and issue branded titles when relevant. Effective January 1, 2027.

SB 38 reorganizes Utah’s consumer protection laws and clarifies the powers of the Division of Consumer Protection. Effective in part May 6, 2026.

SB 190 allows registration for a non-commercial trailer for the length of its life by paying a fee four-times the annual rate. Effective January 1, 2027.

SB 230 amends the Utah consumer code to allow debtors to prepay closed-end consumer loans without penalty. In addition, it clarifies prepayment penalties and prepaid finance charges. Effective May 6, 2026.

Amongst other items, SB 242 updates vehicle registration definitions and fees. The bill addresses other transportation issues and funding for the state of Utah. Effective in part May 6, 2026.

VIRGINIA

Governor Abigail Spanberger signed HB 1309 into law on April 8, 2026. The bill allows for the sale of GAP and GAP Waivers with loans from consumer finance companies. Effective July 1, 2026.

HB 1386 adds breaches of extended service contracts to be covered by the Motor Vehicle Transaction Recovery Fund. Effective July 1, 2026.

WASHINGTON STATE

HB 2711 is a lengthy transportation bill that repeals the luxury aircraft tax, and increases aircraft fuel taxes and registration fees. The bill also modifies how the luxury tax is applied to motor vehicle leases and temporarily exempts motor homes from the luxury tax. Effective June 11, 2026.

SB 6354 seeks to expand Washington State’s electric vehicle adoption by allowing certain manufacturers to sell their vehicles directly to consumers, authorizes the Department of Commerce to create an electric vehicle rebate program for individuals of vulnerable populations, funded by increased vehicle title fees through 2036. Effective in part on June 11, 2026, and in part on October 1, 2026.

WYOMING

The Wyoming Department of Transportation has been tasked by bill SF 107 to create a statewide electronic title and registration system by July 1, 2028. Effective in part immediately.