Effective State Changes

FLORIDA

Regulations 69V-160.030 through 69V-160.111 were amended by redefining where a consumer finance company’s “principal place of business” is located and providing clarity on the forms and processes for reporting to the state. Effective March 11, 2025.

ILLINOIS

The Illinois Secretary of State amended 92 Ill. Adm. Code 1010 to address the fee charged by Electronic Lien and Title (ELT) System Service Providers and the qualifications and procedures to be enrolled as a Service Provider. Additionally, the rules provide for the suspension and termination of a Service Provider from the ELT Program. Effective January 25, 2025.

INDIANA

SB 484 codifies the practices of RV manufacturers, distributors, and dealers and allows the sale of RVs on Sundays as part of a recreational vehicle show under a special event permit. Effective July 1, 2025.

As published in Bulletin 277 in December 2024, the Indiana Insurance Commissioner adjusted credit insurance rates effective January 1, 2025. The discount rate used for credit life is 3.47%. The discount rate used for accident and health (A&H) is 3.07%.

Credit life prima facie rates for monthly outstanding balance are increased to:

• $1.07 per month per $1,000 of outstanding insured debt on single life
• $1.79 per month per $1,000 of outstanding insured debt on joint life

The A&H rates will decrease. The 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

• 14 Retro:   $1.41
• 14 Elim:     $0.99
• 30 Retro:  $0.97
• 30 Elim:    $0.72

Effective January 1, 2025.

IOWA

ARC 8727C is a regulation promulgated by the Revenue Department of Iowa clarifying the one-time fee due for a new registration of a motor vehicle. Effective April 23, 2025.

KANSAS

HB 2122 increases the annual license fees for electric vehicles and plug-in electric hybrids. It also imposes new fees on electric motorcycles, as well as trucks and truck tractors that are electric or hybrid with gross weights of 12,000 pounds or less. Effective January 1, 2026.

KENTUCKY

SB 136 requires the Kentucky Transportation Cabinet to transition to solely store motor vehicle titles electronically—but allows title holders to request a physical copy. Additionally, the electronic system will now be used for liens, temporary tags, and boat transfers. Effective, in part July 1, 2025.

SB 145 allows the holder of a motor vehicle retail installment contract to collect a delinquency charge for a late payment after 3 days if the installment period is less than 28 days, or after 10 days for installment periods of 28 days or more. The bill also allows the holder of a retail installment contract for consumer goods other than motor vehicles to collect a delinquency charge of 5% of the installment or $15, whichever is greater, on each installment in default for more than 10 days. Effective 90 days after the close of the legislative session.

MISSISSIPPI

Mississippi Senate Bill 2495 was signed by the Governor on March 12, 2025. The Bill updates the Mississippi Credit Availability Act (MCAA), extending the sunset date to July 1, 2030. The maximum allowable outstanding principal balance for credit availability accounts has been raised from $2,500 to $3,250. Beginning in 2025, the Mississippi Department of Banking and Consumer Finance will adjust the maximum loan amount based on the CPI-U. Effective July 1, 2025.

MONTANA

On April 3, 2025, HB 99 was signed into law by Governor Greg Gianforte. The bill consolidates the definitions of several different boating vessels and clarifies the temporary registration periods for certain vehicles, amongst other provisions. Effective October 1, 2025.

HB 165 removes the need for a notarized affidavit to transfer a vehicle title in Montana. Effective October 1, 2025.

NEBRASKA

LB 97 raises the cost of license plates. Effective April 14, 2025.

Published in Guidance Document IGD – A2 in January of 2025, the Nebraska Department of Insurance adjusted credit life rates effective April 1, 2025 – January 1, 2026. Rate adjustments for 2026 and 2027 are also included in the bulletin.

Credit life prima facie rates are:

• Single Premium Decreasing Term Life: $0.45 per year per $100 indebtedness
• Joint Life: $0.76 per year per $100 indebtedness

• Outstanding Balance Life: $0.62 per $1,000 per month on the outstanding balance
• Joint Life: $1.04 per $1,000 per month on the outstanding balance

• Level Term Life: $0.83 per year per $100 original indebtedness
• Joint Life: $1.39 per year per $100 original indebtedness

The A&H rates for the 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

• 14 Retro:  $1.33
• 14 Elim:    $0.90
• 30 Retro: $0.90
• 30 Elim:   $0.49
• Joint A&H are based on a factor of 1.80.

Effective April 1, 2025.

NORTH DAKOTA

HB 1127 creates new data security requirements for non-depository financial corporations and adds the definition of a “loan,” specifying it includes alternative financing products as identified by the Commissioner of the Department of Financial Institutions. Effective August 1, 2025.

Following trends seen around the country, HB 1515 amends the laws regarding warranty work compensation that must be paid by manufacturers and distributors to motor vehicle dealers for labor and parts. Effective August 1, 2025.

SOUTH DAKOTA

SB 131 creates a new electronic title and lien system to be administered by the South Dakota Department of Revenue. Effective July 1, 2025.

TENNESSEE

On March 25, 2025, Tennessee Governor Bill Lee signed Senate Bill 694 into law, modifying the state’s Industrial Loan and Thrift Companies Act rate structure. The bill increases the maximum effective interest rate from 30% to 36% of the principal for loans with an amount financed of $100 or more. In addition, as an alternative to loan charges and interest allowed under the Act for loans of $100 up to $2,000, the maximum permitted acquisition charge is increased from 10% to 12.5% of the principal. Effective July 1, 2025.

TEXAS

Released in February 2025, 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 $2,700 plus,

$8 per $100 per annum of the excess to $22,500

OR

(Simple Melded Rates)

30% per annum of the cash advance to $4,500 plus,

24% of the excess to $9,450 plus,

18% of the remainder to $22,500

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:	10% cash advance plus $3 per month
From $35.01 up to $70:	10% cash advance plus $3.50 per month
From $70.01 up to $100:	10% cash advance plus $4 per month
From $100.01 up to $900:	$10 plus $4 per month for each $100 of the cash advance
From $900.01 up to $1,800:	$10 plus $4 per month for each $100 of the cash advance

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

(Add-On Rates)

$12 per $100 per annum of the principal balance to $4,500 plus,

$10 per $100 per annum of the excess to $9,000 plus,

$8 per $100 per annum of the remainder.

Effective July 1, 2025.

UTAH

HB 272 increases the maximum Gross Vehicle Weight Rating from 12,000 lbs. to 14,000 lbs., for the purposes of registering a vehicle in the state and paying a uniform fee rather than a vehicle age-based fee. Effective July 1, 2025.

HB 514 allows two-year registrations for trailers, off-highway vehicles, street-legal all-terrain vehicles, and electric motor vehicles, amongst other provisions. Effective January 1, 2026.

SB 27 defines terms in the law for trailers, motorboats, and motorcycles, allows a fleet of personal vehicles to be registered as a fleet, and clarifies which registration fees apply to certain vehicles. Effective in part on May 7, 2025.

VIRGINIA

HB 1683 and identical bill SB 1308 follow trends seen nationwide related to manufacturers’ and distributors’ reimbursement to motor vehicle dealers for costs related to vehicle recalls and warranties, amongst other provisions. Effective July 1, 2025.

HB 2659 allows dealers to use separate buyer’s orders forms for leases and sales of motor vehicles. Effective July 1, 2025.

FOR IMMEDIATE RELEASE

For more information contact:

Carleton Sales Team

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sales@carletoninc.com

Mississippi

Mississippi Senate Bill 2495 was signed by the Governor on March 12, 2025. The Bill updates the Mississippi Credit Availability Act (MCAA). Key provisions in the bill include:

• Extended Repeal Date: The sunset provision of the MCAA has been extended from July 1, 2026, to July 1, 2030.

• Increase in Maximum Loan Amount: The maximum allowable outstanding principal balance for credit availability accounts has been raised from $2,500 to $3,250.

• Annual Adjustment Based on CPI-U: Beginning in 2025, the Mississippi Department of Banking and Consumer Finance is mandated to issue an annual memo adjusting the maximum loan amount, by applying the Consumer Price Index for All Urban Consumers (CPI-U) for the previous calendar year to the previous year’s maximum, rounding up to the nearest $10 increment.

Effective July 1, 2025.

Tennessee

On March 25, 2025, Tennessee Governor Bill Lee signed Senate Bill 694 into law, modifying the state’s Industrial Loan and Thrift Companies Act (“the Act”) rate structure. The bill increases the maximum effective interest rate from 30% to 36% of the principal, for loans with an amount financed of $100 or more. In addition, as an alternative to loan charges and interest allowed under the Act for loans of $100 up to $2,000, the maximum permitted acquisition charge is increased from 10% to 12.5% of the principal.

Effective July 1, 2025.

 

If you are a Carleton partner and would like additional information or would like to request a file update, please submit a case in the Carleton Customer Portal.

 

About Carleton, Inc.:

Carleton is the country’s leading provider of financial calculation software, loan origination compliance support, and document generation software. With over 55 years of experience, our ongoing expertise and industry knowledge reaffirms why Carleton is a trusted partner. Founded in conjunction with the Truth In Lending Act, Carleton provides expert compliance support with continuous accuracy in all our calculations and disclosures at a state and federal level. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.

Effective State Changes

ARKANSAS

Senate Bill 94 removes the requirement that a new all-terrain vehicle dealer must have a dedicated service and parts structure or perform repair or warranty work at their licensed location. However, the bill now requires that new all-terrain vehicle dealers must service the vehicles or provide for a service provider or warranty service provider for all-terrain vehicles within forty miles of the dealer’s location. Effective 90 days after sine die adjournment.

NEW YORK

Assembly Bill 920 adds medical and health insurance information to the definition of personal identifying information for certain statutory categories. Effective February 14, 2025.

OKLAHOMA

The Department of Consumer Credit published the changes in dollar amounts which will become effective July 1, 2025. Included in the adjustments are the following:

Retail Installment Sales, §2-201:

The greater of:

30% of the amount financed up to $1,980; plus

21% of the excess to $6,600; plus

15% of the remainder to $71,900.

OR  21% Simple Interest

The dollar amounts under §3-508(A) remain the same. The allowable closing fee increases from $184.64 to $190.41.

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

Loan Amount	Acquisition Charge	Handling Charge
Up to $197.57		$6.59 per $32.94 of principal
$197.58-$230.58	1/10 of the amount of principal	$19.76 per month
$230.59-$461.16	1/10 of the amount of principal	$23.06 per month
$461.17-$658.80	1/10 of the amount of principal	$26.35 per month
$658.81-$988.20	1/10 of the amount of principal	$29.65 per month
$988.21-$1,317.60	1/10 of the amount of principal	$32.94 per month
$1,317.61-$1,647.00	1/10 of the amount of principal	$36.23 per month
$1,647.01-$1,976.40	1/10 of the amount of principal	$39.53 per month
$1,976.41-$2,440.00	1/10 of the amount of principal	$48.80 per month
$2,440.01-$3,050.00	1/10 of the amount of principal	$61.00 per month
$3,050.01-$3,660.00	1/10 of the amount of principal	$73.20 per month

The maximum delinquency charge for consumer credit sales and consumer loans will increase from $32.00 to $33.00. Effective July 1, 2025.

SOUTH DAKOTA

Senate Bill 135 will charge the owner of a motor vehicle, off-road vehicle, or snowmobile who does not have a state issued driver’s license, id card, or physical address in state, a $100 fee to title the vehicle in South Dakota, in addition to the title application fee. Effective July 1, 2025.

Senate Bill 179 allows a licensed vehicle dealer to apply for a permit to sell or offer to sell an off-road vehicle at an event located outside of the county where their principal place of business is located.  The event may not be longer than seven days, the dealer has to be a franchise dealer for off-road vehicles, and there must be no other franchise dealer in the county where the event takes place. Effective July 1, 2025.

WYOMING

House Bill 242 would require vehicle dealers who sell trailers to submit a sales authorization agreement to the state, amongst other provisions. Effective July 1, 2025.

Senate File 25 tasks the Department of Transportation with creating and maintaining an electronic lien and title system for the state of Wyoming. Effective July 1, 2027.

Senate File 39 provides for the automatic transfer of a vehicle title upon the death of the owner to a named beneficiary. Effective July 1, 2025.

Senate File 106 authorizes new vehicle dealers to establish hourly labor rates and retail parts markup rates to be charged for warranty repairs. Effective July 1, 2025.

Effective State Changes

MICHIGAN

Michigan updated their Documentary Preparation Fee for 2025 through 2026. The fee cannot exceed the lesser of $280 or 5% of the cash price of the vehicle. Effective January 28, 2025.

MISSOURI

Missouri increased their Administrative Fee for 2025 to $604.47. Effective February 1, 2025.

NEW YORK

Senate Bill 804 was signed into law on February 14, 2025. The new law amends the current business law as to when and how data breach notifications must be provided to the Department of Financial Services. Effective immediately.

PENNSYLVANIA

Pennsylvania increased the maximum Documentary Preparation Charge for 2025 to either $398 or $477, with the larger amount applying to dealers that file documents electronically. Effective January 1, 2025.

Review of State Changes Effective in 2024

ALASKA

• HB 233 makes changes to the auto warranty statute by adding time allowances to the schedule of compensation for dealers’ warranty work. Effective October 27, 2024.

COLORADO

• HB 1089 tasks the state to create an electronic communication system for vehicle owners for registration and license plates. Effective June 3, 2024.
• SB 192 revamps Colorado’s Lemon Law for new vehicles. Effective August 7, 2024.

DELAWARE

• Senate Substitute No. 2 for SB 278 creates new protections for motor vehicle franchise dealers in the state of Delaware. Effective August 29, 2024.

FLORIDA

• HB 1347 changes the bracketed rate structures and tiers of the Consumer Finance Act, covering loans up to $25,000. Effective July 1, 2024.
• SB 902 created the Florida Vehicle Value Protection Agreements Act. Effective October 1, 2024.

GEORGIA

• HB 1100 authorizes the use of electronic notifications by the state regarding motor vehicle insurance coverage and title status. Effective April 22, 2024.

ILLINOIS

• The document preparation fee in the State of Illinois increased to $358.03 for 2024. Effective January 1, 2024.

INDIANA

• The Indiana Secretary of State increased the allowable Documentation Preparation Fee to $245.28 up from $237.51. Effective July 1, 2024.

IOWA

• HF 2185 mandates that the certificate of title for a motor vehicle will no longer include the previous owner’s name and address. Effective July 1, 2024.
• SF 2362 prohibits the sale of service contracts in Iowa unless certain provisions are met. Effective July 1, 2024.

KANSAS

• HB 2098 allows the purchaser of a new or used vehicle a sales tax deduction due to the recent sale of another vehicle. Effective July 1, 2024.
• SB 345 creates the Commercial Financing Disclosure Act requiring the disclosure of certain commercial financing transaction terms. Effective July 1, 2024.

LOUISIANA

• SB 372 eliminates the registration and renewal fees for providers of motor vehicle service contracts. Effective August 1, 2024.

MAINE

• LD 2072 requires the state to provide a printed certificate of title, if requested, by a lienholder participating in the electronic lien titling system. Effective August 9, 2024.

MARYLAND

• HB 352 and SB 362 raised the annual vehicle registration fees and the maximum dealer processing charge (or doc fee) from $500 to $800. Effective June 1, 2024.

MICHIGAN

• HB 5460 allows a retail installment sales contract for a vehicle to provide for a series of monthly payments in unequal payment amounts. Effective July 23, 2024.
• Bulletin 2024-05-CF stated that the loan processing fee amount will remain at $400 through December 31, 2025. Effective January 1, 2024.
• SB 533 allows the state to issue an electronic vehicle title and establish an electronic system to facilitate vehicle ownership transfers. Effective February 13, 2024.

MINNESOTA

• HF 2887 increases the maximum Documentary fee to the lesser of $275 or an amount equal to ten percent of the value of the sale or lease. Effective July 1, 2024.
• The Minnesota Commerce Department published the periodic adjustment in dollar amounts effective through June 30, 2026. Effective July 1, 2024.

MISSISSIPPI

• SB 2543 increased the maximum amount to $5,100 for loans permitted under the Mississippi Consumer Alternative Installment Loan Act. Effective July 1, 2024.

MISSOURI

• The document preparation fee in Missouri was increased through emergency rulemaking from $565.38 to $587.43 for 2024. Effective February 23, 2024.

NEBRASKA

• LB 1317 creates a $150 registration fee for a vehicle powered by an alternative fuel and a $75 fee for a motorcycle or plug-in hybrid. Effective April 25, 2024.

NEW HAMPSHIRE

• HB 1243 replaced the Retail Installment Sales of Motor Vehicles Chapter, significantly changing existing law. Effective July 1, 2024, in part, and September 1, 2024.

NEW JERSEY

• AB 4702 phases out the sales and use tax exemption on zero-emission vehicles. Effective June 28, 2024.
• AB 4011 amends the Transportation Trust Fund Authority Act imposing a $250 fee for any zero-emission vehicle registered in the state. Effective July 1, 2024.
• SB 4084 requires new procedures for the issuing of temporary license plates and registration certificates in New Jersey. Effective August 1, 2024.

NEW YORK

• AB 4066 establishes vehicle manufacturers must pay reasonable compensation to franchise dealers for warranty work. Effective September 4, 2024.

OHIO

• SB 94 establishes processes for releasing electronic liens once a security interest is discharged. Effective October 24, 2024.

OKLAHOMA

• The Department of Consumer Credit published adjustments to allowable charges for retail installment contracts and small loans. Effective July 1, 2024.

SOUTH CAROLINA

• The Department of Consumer Affairs released its biannual dollar bracket adjustment effective through June 30, 2026. Effective July 1, 2024.
• The South Carolina Department of Insurance adopted orders confirming Prima Facie Credit A&H and Credit Property insurance rates. Effective January 1, 2024.
• SB 434 prohibits automatic service contract renewals unless the provider notifies the contract holder within a certain timeframe. Effective May 20, 2024.

SOUTH DAKOTA

• HB 1063 requires county treasurers to collect evidence of sales or other tax paid to another state at the time of vehicle registration. Effective July 1, 2024.
• SB 112 allows any non-resident owner to title a motor vehicle, off-road vehicle, snowmobile, or boat in South Dakota by paying a $100 fee. Effective July 1, 2024.

TENNESSEE

• HB 2075 and companion bill SB 1837 creates a new statewide electronic lien and title system to be implemented by December 31, 2025. Effective May 1, 2024.
• SB 1140 allows motor vehicle dealers to retain 2% of the first $2,500 and 1.15% on anything above $2,500 of sales taxes due to the state. Effective May 28, 2024.

TEXAS

• The Texas OCCC published dollar brackets and ceilings subject to adjustment for Retail Installment Sales and Consumer Loans. Effective July 1, 2024.
• The OCCC released TRD-202403782 and TRD-202405041 revising regulations for vehicle sales financing and vehicle installment sales. Effective November 14, 2024.
• The OCCC updated the documentary fee for a motorcycle, moped, ATV, boat, boat motor, boat trailer, or towable recreational vehicle. Effective September 5, 2024.
• The OCCC updated the Acquisition Charge for Small Loans (Subchapter F) and the Administrative Fee and Large Loans (Subchapter E). Effective July 11, 2024.
• HB 2746 amended the Texas Finance Code regarding refunds for the termination of a debt cancelation agreement upon prepayment. Effective January 4, 2024.

UTAH

• HB 174 requires a person who provides a product or service with an automatic renewal provision to provide notice prior to the renewal date. Effective, in part, May 5, 2024.

VIRGINIA

• HB 744 adds new consumer protections to Virginia law regarding the automatic renewal of service offers. Effective July 1, 2024.
• HB 1106/SB 452 directs independent vehicle dealers to pass a DMV examination which costs $50 in order to renew a dealership license. Effective July 1, 2024.

WEST VIRGINIA

• The Motor Vehicle Dealers’ Advisory Board approved an increase in the maximum Documentary Fee from $499 to $575. Effective July 1, 2024.

Review of State Changes Effective in 2025 and Beyond

CALIFORNIA

• AB 1755 streamlines the civil process for lemon law disputes. Effective January 1, 2025.
• SB 1521 allows certain fees for commercial financing if properly disclosed. Effective January 1, 2025.
• SB 1096 requires certain language be disclosed in at least 16-point bold font on the front of an envelope soliciting consumer financial information. Effective January 1, 2025.

HAWAII

• SB 1534 replaces the current $50 registration fee for electric vehicles with a mileage-based usage charge, beginning July 1, 2025.

ILLINOIS

• The document preparation fee in the State of Illinois increased to $367.70. Effective January 1, 2025.

IOWA

• HF 674 allows any county treasurer to issue certificates of title, registrations, and perfect security interests outside of their county. Effective January 1, 2025.

KANSAS

• HB 2247 changes the threshold amount and rates for consumer loans and retail installment sales, amongst a host of other provisions. Effective January 1, 2025.

KENTUCKY

• HB 8 removes the $60 ownership fee for hybrid vehicles that do not have plug-in charging capability in the state of Kentucky. Effective January 1, 2025.

MISSISSIPPI

• HB 1589 provides that a lienholder must electronically transmit to the Department of Revenue within 14 days of release of the lien. Effective January 1, 2025.

SOUTH CAROLINA

• The South Carolina Department of Insurance adopted orders confirming Prima Facie Credit A&H and Credit Property insurance rates. Effective January 1, 2025.

VERMONT

• HB 546 allows a sales tax deduction for the previous sale of another ATV, as long as it was sold within 3 months of the purchase of a new ATV. Effective January 1, 2025.

VIRGINIA

• The Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2025, enacts insurance rates for the next 3 years. Effective January 1, 2025.

WISCONSIN

• SB 668 overhauled the Department of Financial Institutions’ oversight of non-mortgage licensed financial service providers. Effective January 1, 2025.

Review of Federal Changes Effective in 2024

CONSUMER FINANCIAL PROTECTION BUREAU

• Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2024.
• The CFPB increased TILA threshold adjustments for Regulation M and Z from $66,400 to $69,500. Effective January 1, 2024.
• The CFPB released a final rule to decrease the late fee “safe harbor” amount for larger card issuers from $30 to $8. Due to pending litigation, the rule is on hold.

FEDERAL TRADE COMMISSION

• The FTC issued CARS Rule on December 12, 2023, with an effective date of July 30, 2024. Due to pending litigation, the rule is on hold.

Review of Federal Changes Effective in 2025

CONSUMER FINANCIAL PROTECTION BUREAU

• The CFPB increased TILA threshold adjustments for Regulation M and Z from $69,500 to $71,900. Effective January 1, 2025.
• Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2025.

Effective State Changes

INDIANA

Indiana published LSA Document #24-266, which implements certain bracket updates, including:

• The graduate rate thresholds for sales and loans increase to $2,600/$5,200, respectively.
• The minimum credit service charge increases to $63.00.
• The delinquency charge for sales and loans increases to $21.50.
• The minimum finance charge for loans increases to $63.00.
• The maximum loan term is 37 months for loans with principals of $1,290 to $5,200.

Effective January 1, 2025 – December 31, 2026.

PENNSYLVANIA

Pennsylvania added motorcycles to the protections afforded by its existing Lemon Law in SB 155. Effective May 18, 2025.

NEW YORK

Assembly Bill 3499 clarifies and creates new laws surrounding automobile broker businesses, including requiring additional disclosures to consumers seeking to purchase or lease automobiles with the assistance of an automobile broker. Effective June 19, 2025.

Signed into law on December 21, 2024, Assembly Bill 8913 directs the superintendent of financial services to create a publicly accessible private education debt registry in New York. Any private education creditor must register with the superintendent and satisfy a host of annual reporting requirements, for use by the registry. Effective immediately.

Effective State Changes

TEXAS

The Texas Office of Consumer Credit Commissioner has released two new sets of regulations aimed at the motor vehicle finance space. TRD-202403782 and TRD-202405041 revise and create new responsibilities for Texas businesses involved with motor vehicle sales financing and motor vehicle installment sales, respectively. The new regulations involve licensing requirements, recordkeeping provisions, and examination procedures. Effective November 14, 2024.

WASHINGTON D.C.

D. C. Act 25-558 was signed into law on October 7, 2024. The bill enacts the New Student Loan Borrower Bill of Rights Amendment Act of 2024. Effective November 6, 2024, following a 30-day period for Congressional review.

Effective Federal Changes

CONSUMER FINANCIAL PROTECTION BUREAU

Specific dollar threshold adjustments were announced by the Consumer Financial Protection Bureau (“CFPB”). The CFPB is required to make adjustments to dollar thresholds based on annual changes in the Consumer Price Index. Updates to the Ability to Repay/ Qualified Mortgage Rule, (“ATR/QM”) and Home Ownership and Equity Protection Act (“HOEPA”), among others, were announced and become effective January 1, 2025.

HOEPA Annual Threshold Adjustments:

• The adjusted total amount of the loan threshold will be $26,968, up from $26,092
• The adjusted points-and-fees dollar trigger will be $1,348, up from $1,305

ATR/QM Threshold Adjustments – To meet qualified mortgage criteria, the combined points and fees cannot exceed the following:

• 8% of total loan amount for loans less than $16,855
• $1,348 for loans greater than or equal to $16,855 but less than $26,968
• 5% of total loan amount for loans greater than or equal to $26,968 but less than $80,905
• $4,045 for loans greater than or equal to $80,905 but less than $134,841
• 3% of total loan amount for loans greater than or equal to $134,841

Effective State Changes

CALIFORNIA

Amongst other provisions, AB 3281, would prohibit the contractual waiver of the protections afforded by the Educational Debt Collection Practices Act and the Automobile Sales Finance Act. Effective January 1, 2025.

Signed on September 29, 2024, AB 1755 seeks to streamline the civil process for lemon law disputes. Some reforms included in the bill are outlining clear formulas for restitution payments, adopting expedited settlement processes, and imposing financial penalties on manufacturers who fail to buy back a lemon vehicle. Effective January 1, 2025.

SB 1223 amends the definition of “sensitive personal information” in the California Consumer Privacy Act to include a consumer’s neural data. Effective January 1, 2025.

AB 1008 clarifies that the California Consumer Privacy Act applies to personal information regardless of media format. Effective January 1, 2025.

AB 1824 is another bill aimed at strengthening the California Consumer Privacy Act by requiring businesses that obtain consumer data through acquisition or merger must comply with a consumer’s previous opt-out request. Effective January 1, 2025.

SOUTH CAROLINA

On October 11, 2024, the South Carolina Department of Insurance adopted Orders 2024-04, 2024-05, and 2024-06 confirming Prima Facie Credit A&H and Credit Property insurance rates for 2025.

Under 2024-06, the Credit A&H rates for insurance sold in conjunction with consumer credit transactions in 2025 will decrease from the rates in 2024. The 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

• 14-day Retro: $1.05
• 30-day Retro: $0.99

Under Order 2024-04, the 3-day retroactive A&H rate for insurance sold in conjunction with loans will decrease to $0.20 per $5.00 of monthly indemnity.

Under Order 2024-05, credit property rates will decrease from 2024 to 2025 for Automobile Fire and Theft, Automobile Collision, and Household Goods – Dual Interest. The rate for Household Goods – Single Interest remains at the 2024 level. Effective January 1, 2025.

VIRGINIA

On June 14, 2024, the Virginia State Corporation Commission issued the Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2025, (Case No. INS-2024-00060), enacting new rates for a 3-year period. The new rates will be:

Credit Life Rates
Single Life Rate (discounted at 3.63% for interest and mortality)	$0.8094/$1,000/month
Joint Life Rate (165% of single life rate)	$1.3355/$1,000/month
Single Life Rate (per $100 @ 12 months)	$0.5167
Joint Life Rate (per $100 @ 12 months)	$0.8521
Single Level Life (per $100 @ 12 months)	$0.9452
Joint Level Life (per $100 @ 12 months)	$1.5597

*Level life rates are derived from the rates per $1,000 per month and discounted at 5.5% for interest and mortality.

Credit A&H Rates
14 Day Retro	$1.25/$100 @ 12 months
30 Day Retro	$0.90/$100 @ 12 months
14 Day Elim	$1.00/$100 @ 12 months
30 Day Elim	$0.63/$100 @ 12 months

This most recent change is a decrease in A&H prima facie rates.

Effective January 1, 2025.

CFPB ANNUAL REGULATION M & Z ADJUSTMENTS

The Consumer Financial Protection Bureau (“CFPB”) published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For 2025, the exemption threshold amount for Regulation M and Z will increase from $69,500 to $71,900. The increase was based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (“CPI-W”) as of June 1, 2024, which experienced an annual increase of 3.4 percent. Effective January 1, 2025.

Effective State Changes

CALIFORNIA

On August 19, 2024, SB 1521 was signed into law regarding allowable fees for commercial financing. This bill allows a fee for monitoring a small business’s collateral if the commercial financing transaction is an asset-based loan or factoring, or the fee is expressed as a dollar amount or percentage and deemed a finance charge. Effective January 1, 2025.

DELAWARE

Senate Bill 278 was replaced by Senate Substitute No. 2 for Senate Bill 278. This bill creates new protections for motor vehicle franchise dealers in the state of Delaware. Amongst other provisions, the Substitute Bill clarifies the definitions of “motor vehicle” and “new motor vehicle” to reflect changes in the motor vehicle industry. The bill requires fair compensation to vehicle dealers performing warranty work, maintenance program-work, and recall work. The bill also allows manufacturers to directly sell options and add-ons that are activated or installed through remote electronic transmission to consumers, as long as dealers are allowed the same opportunity. Finally, the bill grants statutory standing to a large association of dealers to bring legal actions. Effective immediately.

NEW YORK

On September 4, 2024, Governor Hochul signed AB 4066 into law. This bill establishes that vehicle manufacturers must pay reasonable compensation to franchise dealers for warranty work, extended warranty work, factory compensated repairs, or recalls. Reasonable compensation is defined as the reasonable labor time allowance utilized for non-warranty customer-paid labor. Effective immediately.

TEXAS

The Texas Office of Consumer Credit Commissioner updated the maximum documentary fees in a retail installment transaction for the purchase of a motorcycle, moped, all-terrain vehicle, boat, boat motor, boat trailer, or towable recreational vehicle. For a retail installment contract for the purchase of one or more of these “covered land vehicles,” the reasonable maximum amount of the documentary fee is $200 (up from $125). For a retail installment contract for the purchase of one or more covered watercraft, the reasonable maximum amount of the documentary fee is $200 (up from $125). For a retail installment contract for the purchase of one or more covered land vehicles and one or more covered watercraft, the reasonable maximum amount of the documentary fee is $250 (up from $175). Effective September 5, 2024.

Effective State Changes

ALASKA

Signed into law on August 1, 2024, HB 233 makes changes to the auto warranty statute by adding time allowances to the schedule of compensation for warranty work. Auto manufacturers will now have to compensate dealers for warranty work using rates and time allowances that are closer to actual costs for dealership mechanics. Effective October 27, 2024.

CALIFORNIA

Assembly Bill 3286 was signed on July 15, 2024. This bill clarifies the process for CPI adjustments for the California Consumer Privacy Act (“CCPA”). The five thresholds and penalties subject to CPI adjustments every 2 years are: the revenue threshold for businesses covered by the CCPA, damages pursuant to a civil action in the event of a negligent data breach, administrative enforcement fines, civil penalties, and the Privacy Protection Agency Board members’ per diem. Effective July 15, 2024.

ILLINOIS

House Bill 4447 was signed into law on August 9, 2024. The bill creates the Motor Vehicle Dealer Protection Act, which makes it illegal to use the name, image, registered trademark, or intellectual property belonging to a vehicle dealer without permission. Effective January 1, 2025.

Senate Bill 86 amends the Know Before You Owe Private Education Loan Act and the Student Loan Servicing Rights Act to include new disclosures lenders must provide to cosigners. Effective August 2, 2024.

Senate Bill 3550 was signed into law by Governor Pritzker on August 9, 2024. The bill amends the Financial Institutions Code by broadening the definition of “financial institutions” and restructures oversight responsibilities between the Division of Financial Institutions and the Department of Financial and Professional Regulation. Additionally, the new law amends the Consumer Installment Loan Act and the Payday Loan Reform Act to allow for fines against entities not registered with the State. Effective August 9, 2024.

MICHIGAN

House Bill 5460 amends the Motor Vehicles Sales Finance Act to allow a retail installment sales contract for a new vehicle to provide for a series of monthly payments in unequal payment amounts if the amount of any payment does not increase more than 40% from the first scheduled payment. Also, each scheduled payment cannot exceed the buyer’s maximum payment threshold. Effective July 23, 2024.

NEW HAMPSHIRE

House Bill 1243 was signed into law on August 2, 2024, repealing and replacing the Retail Installment Sales of Motor Vehicles Chapter (“RISMV”). The new RISMV makes significant changes to existing law that affects motor vehicle financing, vehicle leases, direct loans, the licensing of servicers, and disclosure requirements for loans and retail installment sales. The bill changes and adds the definitions of many terms, including: retail installment contract, retail installment transaction, lender, direct loan and indirect loan. HB 1243 also makes changes to disclosure requirements and servicing practices. Since the signing of the law, the New Hampshire Banking Department issued FAQs related to these changes and their enforcement. The Department has also instructed dealers to contact them if they believe they will be out of compliance. Effective July 1, 2024, in part, and September 1, 2024.

OHIO

Amongst other items, Senate Bill 94 establishes processes for releasing electronic liens once a security interest is discharged. The bill also creates a new procedure for adjusting the documentary service charge allowed with the sale or lease of a motor vehicle. Effective October 24, 2024.

TEXAS

The Texas Office of Consumer Credit Commissioner’s released updates to the Texas Finance Code. For Small Loans—Subchapter F Loans—lenders can charge an Acquisition Charge of 12.5% (previously 10%) of the Amount Financed up to a maximum of $125 (previously $100). 7 Tex. Admin. Code § 83.605(a). For Large Loans—Subchapter E Loans—a lender can charge an Administrative Fee that does not exceed $125 (previously $100). 7 Tex. Admin. Code § 83.503(1). These fees are to be updated annually starting July 1, 2025. Effective July 11, 2024