Effective State Changes

ALABAMA

House Bill 91 will now allow county officials to contract with a third-party vendor for vehicle print-on-demand validation decals, emblems, and registration receipts. Effective April 5, 2022.

Governor Kay Ivey signed House Bill 335 into law on March 29, 2022. The amended law now allows a licensee making Small Loans under Ala. Code § 5-18, to collect a closing fee of $50 or 4% of the loan amount, whichever is less. This fee may be paid from the proceeds and financed. Upon full prepayment of any loan under Ala. Code § 5-18, any closing fee collected is subject to the refund provisions of the act, however the licensee may retain up to $25 of the closing fee. Effective immediately.

Senate Bill 48 provides that a guaranteed asset protection (“GAP”) waiver may offer provisions which waive a certain amount or provide credit towards a replacement vehicle. The bill also allows for an excess wear and use waiver for lease agreements. Effective January 1, 2023.

Signed by Governor Ivey on March 1, 2022, Senate Bill 52 revises the language surrounding Alabama’s warranty services for motor vehicle dealers. Additionally, it authorizes charges for pre-delivery services and compensation for services under those warranty contracts. Effective June 1, 2022.

INDIANA

House Bill 1167 pushes back certain deadlines required of the Indiana BMV to establish a state-wide electronic lien system. Effective in part July 1, 2022, and January 1, 2023.

Governor Eric Holcomb signed House Bill 1351 on March 19, 2022. This Trade Regulation affects all businesses in Indiana which own or use the personal information of an Indiana resident for commercial purposes and will now require notification of a data breach within 45-days of discovery. Effective July 1, 2022.

Among many other provisions, Senate Bill 383 corrects references to the UCCC effective date, amends the provisions in the UCCC governing authorized finance charges for consumer loans other than supervised loans, and establishes provisions concerning permitted additional charges for GAP agreements. The new law also states that the average retail value for a used motor vehicle should be established by a third-party valuation provider to determine GAP coverage instead of the National Automobile Dealers Association average retail value. Effective July 1, 2022.

KENTUCKY

House Bill 284 provides for the Kentucky Transportation Cabinet to establish an electronic title application and registration system for required forms and fees, allow certain entities to send title transfers and fleet registrations, and sets appropriate fees, charges, and policies for the new system. Effective date January 1, 2024.

House Bill 474 requires insurance licensees in Kentucky to investigate known and potential cybersecurity events. By establishing relevant definitions, requirements, and protocols, this new bill will also punish licensees who fail to follow obligations surrounding a cybersecurity event. Finally, this law authorizes the insurance commissioner to investigate, examine, and enforce all provisions for compliance. Effective January 1, 2023.

On April 7, 2022, House Bill 494 was signed into law establishing the Student Education Loan Servicing, Licensing, and Protection Act of 2022. The new bill establishes licensing, abusive practices, record requirements and other conditions to be a student loan servicer in Kentucky. Effective July 14, 2022.

Senate Bill 91 allows for established motor vehicle dealers to deliver vehicles purchased on the Internet to customers at their request. The bill also enables the Motor Vehicle Commission to establish fees for other licensee activities. Effective July 14, 2022.

MAINE

Legislative Document 1843 allows for the Maine Secretary of State to set up an electronic lien titling program following the evaluation of such a need and report back to the legislature by January 1, 2023. Effective July 19, 2022.

MASSACHUSETTS

On February 10, 2022, the Commonwealth of Massachusetts’ Office of Consumer Affairs and Business Regulation in the Division of Banks released a letter regarding the charging of fees when a Massachusetts’s consumer cancels a GAP Waiver product. The position of the Division is that a Massachusetts consumer may not be charged a cancellation fee.

MISSISSIPPI

Senate Bill 2831 establishes the Taxation of Remote and internet-based Computer Software Products and Services Study Committee to study and advise the State of Mississippi on taxing remote and internet software products and services. Effective March 28, 2022.

SOUTH CAROLINA

The Department of Consumer Affairs released its biannual dollar bracket adjustment effective from July 1, 2022, through June 30, 2024. Among the dollar bracket adjustments are:

• The consumer credit sale, consumer lease, and consumer loans defined maximum amount changes from $105,000 to $115,000. (§2.104(1)(e), §2.106(1)(b), and §3.104(d), respectively).
• The maximum delinquency charge for sales and loans transactions changes from $21.00 to $23.00. (§2.203(1) and §3.203(1), respectively).
• The minimum delinquency charge changes from $8.40 to $9.20. (§ 2.203(2)).

Effective July 1, 2022.

SOUTH DAKOTA

House Bill 1082 extends the motor vehicle excise tax on vehicles leased for more than twenty-eight days to include certain off-road vehicles. Effective July 1, 2022.

VIRGINIA

Governor Glenn Youngkin enacted House Bill 1027 on April 11, 2022. This new bill mandates that certain commercial financing providers register with the Commonwealth of Virginia’s State Corporation Commission. Providers or brokers of sales-based financing products will now need to provide certain disclosures with any new offers for financing. The bill also has provisions regarding arbitration, arbitration proceedings, and contractual language allowed in these financing agreements. Finally, the bill expressly provides for its enforcement by the Office of the Attorney General. Effective July 1, 2022.

Senate Bill 215 allows the Virginia DMV to expand the electronic titling program for new motor vehicles to all applications. Additionally, the bill allows the Department to register all vehicles online and charge certain fees to fund these programs. Effective July 1, 2022.

On April 11, 2022, Senate Bill 383 was signed into law by Governor Youngkin. The new law eliminates a required hearing prior to the State Corporation Commission determining the actual loss ratio and adjusting the prima facie credit insurance rates. The new law provides notification of such ratio and rate changes and then an opportunity for a hearing. Effective July 1, 2022.

UTAH

Utah Governor Spencer Cox signed House Bill 186 raising the registration and renewal fees for plug-in hybrid vehicles and hybrid electric vehicles, as well as establishing the road usage rate and charge cap for the next several years. Effective January 1, 2023.

Senate Bill 183 was enacted on March 24, 2022. The new law creates the Commercial Financing Registration and Disclosure Act requiring certain financing entities register with the Department of Financial Institutions if they are providing accounts receivable purchase transactions, commercial loans, or commercial open-end credit. It also requires those entities to provide certain disclosures with their commercial financing products. Effective May 4, 2022.

WASHINGTON

House Bill 1736 creates the Washington Student Loan Program. Administered by the Washington Student Achievement Council, the program is required to consult with the Office of the State Treasurer and the State Investment Board on design and implementation. Effective June 9, 2022.

WEST VIRGINIA

Signed into law on March 12, 2022, by Governor Jim Justice, House Bill 4560 is mostly concerned with regulating interactions between motor vehicle dealers, distributors, wholesalers, and motor vehicle manufacturers. Among other provisions, the bill clarifies how distance is determined between dealerships, how manufacturers and distributors use dealership property, and how manufacturer performance standards are set. Effective June 10, 2022.

House Bill 4567 eliminates the municipal business and occupation or privilege tax for motor vehicle dealers over a three-year period by decreasing the tax on new automobiles that have never been registered. At the end of that three-year period the municipal business and occupation or privilege tax will be eliminated for new vehicles. Effective June 9, 2022.

WYOMING

On March 15, 2022, House Bill 64 was signed into effect. The bill defines theft protection programs, theft protection program warranties, and specifies that they are not insurance. Additionally, the bill amends the scope of service contracts to include repair or maintenance due to road hazards and the replacement of a vehicle key or key fob. Effective July 1, 2022.

House Bill 5260 revamps the Michigan Vehicle Code in order to change the requirements for used vehicle dealer training. On February 23, 2022, Michigan’s Governor Gretchen Whitmer signed the new law into effect which modified provisions governing dealer training programs, training programs for designated individuals, and continuing education training programs. Among other provisions, the new law also specified that certain training requirements could be satisfied by attending a training program that was conducted by the Secretary of State or a qualified trade organization. These training programs can now be conducted online or by other electronic means. Effective immediately.

NEW MEXICO

On March 1, 2022, Governor Michelle Lujan Grisham signed House Bill 132 enacting a 36% TILA Annual Percentage Rate (“APR”) rate cap for small dollar loans in New Mexico. This law amends the New Mexico Small Loan Act of 1955 and the New Mexico Bank Installment Loan Act of 1959 to make them substantially similar for consumers.

• Threshold: The new law regulates loans up to $10,000 (increased from the previous $5,000 cap).

• Rate: A maximum 36% TILA APR limit replaces the previous limit of 175% TILA APR.
• Fees:
  • Fees included in the finance charge, and therefore subject to the 36% APR Cap, include:
    • Charges for ancillary products or services sold or any fee charges in connection or concurrent with the extension of credit; or
    • Any credit insurance premium or fee and any charge for single premium credit insurance or any other fee related to insurance.
    • *These fees above are specifically included in the New Mexico finance charge definition for purposes of calculating the APR, even if TILA Regulation Z would have excluded them.
  • Amounts paid to a public officially in relation with the extension of credit are specifically excluded from the finance charge.
  • For loans that are $500 or less, a new fee is allowed that may not exceed 5% of the total principal and may be imposed only once a year. This fee is excluded from the finance charge, and therefore the 36% APR Cap.
• Removed Provisions: The new law removed provisions previously included in both laws, including:
  • The 24-month maximum term;
  • Prohibitions on late fees, non-sufficient funds fees, origination fees, prepayment penalties, and charges for ancillary products. Effective January 1, 2023.

NEW YORK

Senate Bill 7721 amends the tax laws in the State of New York to remove language that allowed a lessor with a lease containing a terminal rental adjustment clause to pay the sales tax on the full value of the leased vehicle at the beginning of the lease, as opposed to paying the tax over time. Governor Kathy Hochul signed the bill on February 24, 2022. In addition, the new law clarifies that if a lessor refunds a portion of the receipt to the lessee, then the lessee can claim a credit for the sales taxes paid on the amount refunded. A lessor may claim a credit against any sales taxes paid by the lessee that was refunded if they can show the amount was previously returned. Effective 30-days following the passage of this bill before the next quarterly tax season begins.

SOUTH DAKOTA

On March 7, 2022, Senate Bill 160 was signed into law by Governor Kristi Noem. This bill exempts service contracts from the insurance code. The new law addresses specific requirements for service contract coverage of different vehicle components. Additionally, the law defines theft protection products and items covered under its warranties. Effective July 1, 2022.

Effective State Changes

ARKANSAS

On December 17, 2021, the Division of Workforce Services in the Arkansas Department of Commerce adopted the Forgiveness of Student Loan Program Rule. The program assists eligible employees with the repayment of qualifying student loans. Effective January 1, 2022.

NEW JERSEY

Signed into law on January 18, 2022, Assembly Bill 5033 authorizes motor vehicle dealers to sell motor vehicles online provided they meet certain physical requirements for their business premises. In addition, it allows dealers to obtain electronic signatures for motor vehicle purchases and leases. Effective immediately.

Assembly Bill 6162 established new building requirements for new and used motor vehicle dealers in regard to the size and signage of their business premises. Effective immediately.

NEW YORK

Senate Bill 2767 was signed into law by Governor Kathy Hochul on December 22, 2021. The new law establishes the private student loan refinance task force. Effective immediately.

WISCONSIN

Signed into law on December 3, 2021, Senate Bill 437 eliminated the state of emergency exception for an unregistered vehicle to operate on a highway unless the registration has been mailed or delivered to the Department of Transportation or the vehicle displayed a temporary plate. The new law creates an exception for operating an unregistered vehicle due to an imminent public disaster, imminent death, or great bodily harm. Effective December 5, 2021.

Review of State Changes Effective in 2021

ARIZONA

HB 2721 required Arizona motor vehicle dealers to disclose any Document Fee they charge in advertisements. Effective September 28, 2021.

SB 1463 made technical changes and established new fees for Premium Finance Companies and Advance Fee Loan Brokers. Effective retroactively to June 30, 2020.

ARKANSAS

HB 1893 exempted certain electric and hybrid vehicles from registration fees. Effective retroactively to October 1, 2019.

CALIFORNIA

AB 1864 enacted the California Consumer Financial Protection Law. Effective January 1, 2021.

COLORADO

SB 21-076 imposed a per-transaction fee up to $3, set by the Department of Revenue, on third-party providers to issue titles, registrations, and liens. Effective July 7, 2021.

CONNECTICUT

HB 6100 modernized the motor vehicle Lemon Law. Effective October 1, 2021.

FLORIDA

SB 50 required internet marketplace providers and persons outside of Florida to remit discretionary sales surtax. Effective, in part, on July 1, 2021.

GEORGIA

HB 111 clarified language around credit unions and banks and established the right for a hardship or convenience deferment of an installment loan. Effective July 1, 2021.

HAWAII

HB 1192 created a new small dollar installment loan scheme for loans up to $1,500. Bill effective July 1, 2021; licensing requirements effective January 1, 2022.

ILLINOIS

The State of Illinois increased its document preparation fee to $303.60. Effective January 1, 2021.

SB 1792 a maximum charge of 36% APR computed like the MAPR for consumer loans, motor vehicle sales, and retail installment sales. Effective March 23, 2021.

INDIANA

Indiana published dollar adjustments under the consumer credit code for sales, supervised loans, and small loans. Effective January 1, 2021 – December 31, 2023.

IOWA

HF 235 removed requirements to collect a service charge for loans and also prohibited a creditor from collecting a minimum charge upon prepayment. Effective July 1, 2021.

LOUISIANA

SB 67 raised the Documentary Service Fee for the sale of a motor vehicle from $200 to $425. Effective August 1, 2021.

MAINE

LD 522 granted to Maine consumers the right to void a loan that is fraudulently procured under Maine finance law. Effective June 28, 2021.

MARYLAND

SB 281 extended the statutory and regulatory authority of Office of the Commissioner of Financial Regulation’s through July 1, 2032. Effective April 13, 2021.

MICHIGAN

Bulletin 2021-04 adjusted the documentary preparation fee cap to $230. The fee is the lesser of $230 or 5% of the cash price of the motor vehicle. Effective January 15, 2021.

MISSISSIPPI

HB 1075 reenacted the Mississippi Credit Availability Act through July 2026. Effective July 1, 2021.

NEBRASKA

LB 363 defined licensing requirements for sales financing companies who offer installment sales contracts. Effective immediately, March 17, 2021.

NEW HAMPSHIRE

HB 610 required retail sellers, sale finance companies, small loan lenders, debt adjusters, and money transmitters to license with the NMLS. Effective October 9, 2021.

NEW YORK

A10118-A/ S05470B required certain disclosures for commercial financing transactions. Effective June 21, 2021. (Effective date updated to January 1, 2022 per SB 898.)

NORTH DAKOTA

SB 2103 amended money broker loan charges, expanded licensing exemptions, and changed deferred presentment service transaction procedures. Effective August 1, 2021.

OKLAHOMA

The Department of Consumer Credit published the changes in dollar brackets for §2-201, § 3-508(B). The dollar amounts for § 3-508(A) are the same. Effective July 1, 2021.

SB 796 amended the Oklahoma Uniform Commercial Code, specifically changing the brackets, rates, and ceilings of Section 3-508A. Effective November 1, 2021.

PENNSYLVANIA

Pennsylvania’s maximum allowed document preparation fee for 2021 is either $328 or $394 (if electronically filed). Effective January 1, 2021.

SOUTH CAROLINA

Orders 2020-03, 2020-04, and 2020-05 confirmed Prima Facie Credit A&H and Credit Property rates for 2021. Effective January 1, 2021 – December 31, 2021.

SOUTH DAKOTA

SB 8 defined supervised banks, credit unions, foreign banks, and trusts as subject to examination and enforcement. Effective July 1, 2021.

TENNESSEE

HB 421 increased fees and added new fees an industrial loan entity may charge under Tennessee law. Effective July 1, 2021.

TEXAS

The Texas OCCC released the dollar brackets and ceilings for Consumer Loans and Retail Installment Sales. Effective July 1, 2021.

VIRGINIA

HB 789 set a maximum interest rate of 36% for Installment Loans, Open-End Credit Plans, Short Term Lenders, and Motor Vehicle Title Loans. Effective January 1, 2021.

WISCONSIN

Revised Prima Facie Credit Life and Credit Accident and Sickness Insurance rates were released on October 15, 2020. Effective January 1, 2021 – December 31, 2024.

WYOMING

HB 8 capped a consumer loan finance charge at 36% per year on the principal that is equal or less than $1,000, and 21% on the principal above $1,000. Effective July 1, 2021.

Review of State Changes Effective in 2022 & 2023

ARKANSAS

SB 225 updates registration fees for plug-in electric vehicle to $100 and hybrid electric vehicle to $50. Effective January 1, 2022.

HB 1042 repeals the long-term rental vehicle excise tax. Effective January 13, 2022.

SB 184 repeals the Arkansas Pawnbroker Act. Effective January 13, 2022.

HB 1912 provides a reduced sales and use tax rate for certain used motor vehicles, trailers, and semitrailers. Effective January 1, 2022.

CALIFORNIA

SB 908 enacts the Debt Collection Act (“DCLA”). Effective January 1, 2022.

AB 1221 specifies that a service contract may be offered on a month-to-month or other periodic basis and continued until canceled by the buyer. Effective January 1, 2022.

AB 424 enacts the Private Student Loan Collections Reform Act. Effective July 1, 2022.

Proposition 24 passed and expands consumer privacy protections. Effective January 1, 2023.

GEORGIA

HB 63 alters the alternative ad valorem tax on motor vehicles. Effective January 1, 2022.

ILLINOIS

The document preparation fee in the State of Illinois rises from $303.60 to $324.24. Effective January 1, 2022.

HB 3940 amends the Motor Vehicle Franchise Act. Effective January 1, 2022.

SB 58 restores the full sales tax trade-in credit on vehicle trade-ins. Effective January 1, 2022.

INDIANA

HB 1285 sets up a statewide electronic titling and lien system. Effective, in part, on January 1, 2022.

Bulletin 262 adjusts the credit life rates. Effective January 1, 2022.

IOWA

Iowa released new regulations increasing the special annual registration fees for electric vehicles. Effective January 1, 2021, and January 1, 2022.

HF 719 creates the Insurance Data Security Act which enacts standards for data security and data breach investigations. Effective January 1, 2022.

MICHIGAN

HB 4117 allows the Secretary of State to issue vehicle registrations for two years if requested by the vehicle owner. Effective October 1, 2022.

NEW JERSEY

SB 324 directs the New Jersey Motor Vehicle Commission to promulgate rules for electronic registration certificates. Effective May 1, 2023.

NEW MEXICO

Prima Facie Credit Insurance Rates were updated by Bulletin 2021-0028 and will go into effect on February 1, 2022.

NEW YORK

SB 898 amends A10118-A/S05470B and exempts transactions of at least $50,000 for auto dealers from commercial financing disclosures. Effective January 1, 2022.

NORTH CAROLINA

SB 425 makes changes to the current statutes governing Guaranteed Asset Protection Waivers. Effective January 1, 2022.

OREGON

SB 485 declares a student loan emergency and creates new procedures in Oregon for student loan lenders. Effective July 1, 2022.

PENNSYLVANIA

Pennsylvania’s maximum allowed document preparation fee for 2022 is either $351 or $422 (if electronically filed). Effective January 1, 2022.

SOUTH CAROLINA

Orders 2021-02, 2021-03, and 2021-04 were adopted by the Department of Insurance for Prima Facie Credit A&H and Credit Property rates. Effective January 1, 2022.

VIRGINIA

The Virginia Consumer Data Protection Act establishes rights for Virginia consumers to control how companies use their personal data. Effective January 1, 2023.

The Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2022, enacts new rates for a 3-year period. Effective January 1, 2022.

WASHINGTON

SB 5000 reduces taxes 50% on fuel-cell powered passenger cars, light duty trucks, and medium duty passenger vehicles powered by a fuel cell. Effective July 1, 2022.

Review of Federal Changes Effective in 2021

CONSUMER FINANCIAL PROTECTION BUREAU

Dollar threshold adjustments announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2021.

The CFPB published its annual TILA threshold adjustment, as required by the Dodd-Frank. Effective January 1, 2021.

The CFPB released a notice to collect and report on credit applications made by small businesses. Comments were accepted until November 29, 2021.

On October 30, 2020, the CFPB released the Final Rule for Debt Collection Practices—Regulation F. Effective November 30, 2021.

Review of Federal Changes Effective in 2022

CONSUMER FINANCIAL PROTECTION BUREAU

Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2022.

The CFPB published its annual TILA threshold adjustment, as required by the Dodd-Frank. Effective January 1, 2022.

The CFPB delayed the mandatory compliance date for the new qualified mortgage (QM) final rule. New effective date is October 1, 2022.

Effective State Changes

ILLINOIS

House Bill 1796 was signed into law by Governor J B Pritzker on November 16, 2021. This new law introduces the Reimagining Electric Vehicles in Illinois Act. Among other provisions, the Department of Commerce and Economic Opportunity shall provide financial incentives and tax credits to eligible manufacturers of electric vehicles, component parts, and power supply equipment. Effective immediately.

The document preparation fee in the State of Illinois rises from $303.60 to $324.24. Effective January 1, 2022.

INDIANA

Published in Bulletin 262 on November 30, 2021, the Indiana Insurance Commissioner adjusted credit life rates effective January 1, 2022. The discount rate used for credit life is 1.82%. The discount rate used for accident and health is 1.42%.

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

• $0.81 per month per $1000 of outstanding insured debt on single life
• $1.35 per month per $1000 of outstanding insured debt on joint life

The A&H rates will remain the same as the those established in Bulletin 246. The 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

• 14 Retro:  $1.50
• 14 Elim:    $1.05
• 30 Retro:  $1.03
• 30 Elim:    $0.77

Effective January 1, 2022.

MICHIGAN

House Bill 4117 would allow the Secretary of State to issue vehicle registrations for two years if requested by the vehicle owner. Effective October 1, 2022.

NEW JERSEY

Senate Bill 324 directs the Chief Administrator of the New Jersey Motor Vehicle Commission to promulgate rules and regulations in order to create electronic registration certificates. Effective May 1, 2023.

SOUTH CAROLINA

On October 1, 2021, the South Carolina Department of Insurance adopted Orders 2021-02, 2021-03, and 2021-04 confirming Prima Facie Credit A&H and Credit Property rates for 2022. Under 2021-02, the Credit A&H rates for insurance sold in conjunction with consumer credit transactions in 2022 will decrease from their current rates in 2021. The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

• 14-day Retro: $1.38
• 30-day Retro: $1.30

Under Order 2021-03, Credit Property rates for Automobile Fire and Theft, Automobile Collision, and Household Goods – Dual Interest, have decreased. Household Goods – Single Interest remains the same. Under Order 2021-04, the 3-day retroactive A&H rate for insurance sold in conjunction with loans will decrease to $0.25 per $5.00 of monthly indemnity. Effective January 1, 2022.

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 2022 the exemption threshold amount for Regulation M and Z will remain the same at $61,000. Effective January 1, 2022.

VIRGINIA

In August, we reported on Virginia’s adjustment of the prima facie rates which were adopted for a three-year period. The Accident & Sickness rates for 2022 were updated. The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

• 14-day Retro: $1.56
• 30-day Retro: $1.12

Pursuant to Case No. INS-2021-00023, the credit life insurance rates will be $0.6672 per month per $1,000.00 of outstanding insured indebtedness if premiums are payable on a monthly outstanding balance basis. The rate per $100.00 of initial indebtedness repayable in 12 equal monthly installments is $0.4259. Effective January 1, 2022.

Effective State Changes

CALIFORNIA

Signed into law on October 4, 2021, Assembly Bill 1221 specifies that a service contract may be offered on a month-to-month or other periodic basis and continue until canceled by the buyer The bill also gives service contractors numerous provisions regarding a conspicuous notice and ways to cancel the service contract. Vehicle service contracts are exempted from various provisions. Effective January 1, 2022.

On October 6, 2021, Governor Gavin Newsome signed Assembly Bill 424 into law enacting the Private Student Loan Collections Reform Act. The act would prohibit a private education lender or a private education loan collector from attempting to collect a private education loan unless certain information is provided to the debtor. Additionally, the Private Student Loan Collections Reform Act would require all settlement agreements between a private education lender or loan collector and a debtor to be documented in open court or memorialized in writing. Effective July 1, 2022.

NORTH CAROLINA

Signed by the Governor on October 28, 2021, Senate Bill 425 makes changes to the current statutes governing Guaranteed Asset Protection Waivers. The new language specifies that a GAP waiver may be with or without a separate charge. The language also states that the cost of a GAP waiver shall be considered an authorized charged that may be financed and shall not be considered part of the finance charge or interest. The Act adds a new Article 48 concerning Vehicle Value Protection Agreements and specifies requirements for offering such an agreement, as well as disclosure requirements. Effective January 1, 2022.

CONSUMER FINANCIAL PROTECTION BUREAU

Specific dollar threshold adjustments were announced through the Consumer Protection Financial Bureau. The CPFB 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 Equity Protection Act (“HOEPA”), among others, were announced and become effective January 1, 2022.

HOEPA Annual Threshold Adjustments:

• The adjusted total amount of the loan threshold will be $22,969, up from $22,052
• The adjusted points and fees trigger will be $1,148, up from $1,103

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 $14,356
• $1,148 for loans greater than or equal to $14,356 but less than $22,969
• 5% of total loan amount for loans greater than or equal to $22,969 but less than $68,908
• $3,445 for loans greater than or equal to $68,908 but less than $114,847
• 3% of total loan amount for loans greater than or equal to $114,847

Effective State Changes

COLORADO

On August 25, 2021, the emergency filing of the Colorado Student Loan Servicers Act Rules—4 CCR 902-3—were adopted. Effective September 1, 2021.

ILLINOIS

On August 27, 2021, Governor JB Pritzker signed House Bill 2746 the Know Before You Owe Private Education Loan Act into law. The new law affects private education lenders and has a number of requirements to provide information to students before they enter these loans. Additionally, the law requires these lenders to file reports with the Department of Financial and Professional Regulation. Effective immediately.

NEW HAMPSHIRE

Governor John Sununu approved of House Bill 610 on August 10, 2021. Among other provisions, the new law requires retail sellers, sale finance companies, small loan lenders, debt adjusters, and money transmitters to license via the Nationwide Multistate Licensing System and Registry in New Hampshire. Effective October 9, 2021.

NORTH CAROLINA

House Bill 403 was signed into law by Governor Roy Cooper on September 10, 2021. The new law makes several changes to North Carolina’s Motor Vehicle Dealers and Manufacturers Licensing Law. Among other provisions, the bill prohibits conditioning approval of dealership transfers on a dealer’s willingness to renovate, relocate, or other conditions. Additionally, among other provisions the new law:

• Extends conditions for certain manufacturer incentive programs.
• Clarifies changes to existing law regarding warranties.
• Ensures delivery of prepared documents at a customer’s home will not violate salesroom restrictions for vehicle sales.

Effective immediately.

Governor Cooper also enacted House Bill 650 on September 2, 2021. This new law makes a number of changes to the existing motor vehicle and motor vehicle dealer laws. Changes include:

• Clarifies sales representative licensing provisions.
• Modifies the grounds for revoking sales representative licenses.
• Limits the ability to revoke the licenses of vehicle dealers.

Effective October 1, 2021.

Senate Bill 379 requires the North Carolina DMV to issue an unregisterable certificate of title for motor vehicles. In addition, it establishes an application process to apply for an unregistrable certificate of title. Effective October 1, 2021.

OKLAHOMA

Section 3-508A increases the cap on loan finance charges from 27% to 32% per year on unpaid balances of the principal of $7,000 or less, 23% per year on the unpaid balances of the principal more than $7,000 to $11,000, and 20% on the unpaid balances of the principal more than $11,000. The bill also provides for a closing fee upon prepayment in full of up to $28.85 under Section 3-210. Effective November 1, 2021.

CONSUMER FINANCIAL PROTECTION BUREAU

On August 31, 2021, the Consumer Financial Protection Bureau (“CFPB”) released a notice for proposed rulemaking in order to collect and report on credit applications made by small businesses. The focused collection will analyze data from minority and woman owned businesses. Comments will be accepted until November 29, 2021.

Effective State Changes

COLORADO

Senate Bill 076 imposes a per-transaction fee up to $3, set by the Department of Revenue, on third-party providers to issue titles, registrations, and liens. Effective July 7, 2021.

CONNECTICUT

Senate Bill 716 provides additional protections for student loan borrowers and cosigners of private education loans. The bill also presents a new cause of action which can be brought against student loan servicers who engage in abusive acts or practices. Effective July 1, 2021.

Governor Ned Lamont signed Senate Bill 890 requiring federal student loan servicers to register with the Connecticut Department of Banking and comply with record requirements and consumer protection mandates applicable in the state. Effective July 1, 2021.

ILLINOIS

The Motor Vehicle Franchise Act has been amended by House Bill 3940. The new law requires licensed dealers to sell all motor vehicles instead of stating unlicensed dealers should be prevented from these sales. Additionally, this bill alters the manner in which dealers are reimbursed by manufacturers among other changes. Effective January 1, 2022.

Senate Bill 58 restores the full sales tax trade-in credit on vehicle trade-ins. Two years ago, lawmakers capped the sales tax trade-in credit at $10,000 for some passenger vehicles and SUVs. Restoring the full credit will give all motor vehicle customers a tax credit equal to the full value of their vehicles. Effective January 1, 2022.

The Debt Settlement Consumer Protection Act now includes student loan borrowers following the passage of Senate Bill 669. Among other requirements, the bill provides for specified disclosures in advertising and in contracts before signing. Effective Immediately.

MAINE

Governor Janet Mills signed Legislative Document 522 granting to Maine consumer’s the right to void a loan that is fraudulently procured under Maine finance law. The role of this new law is to crackdown on predatory lending in Connecticut. Effective 90 days after adjournment.

Legislative Document 1645 is an act that creates a registry of student loan lenders and implements other protections for private student loan borrowers. Effective 90 days after adjournment.

OREGON

Oregon declared a student loan emergency and enacted Senate Bill 485 in response. The law requires certain student loan servicers to obtain or renew license in Oregon. In addition, the bill details application and renewal procedures, required fees and creates certain exemptions. Finally, the new law allows for civil penalties against an unlicensed servicer and permits the Director of the Department of Consumer and Business Services to participate in multistate examinations. Effective July 1, 2022.

VIRGINIA

On August 10, 2021, the Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2022, Case No. INS-2021-00023 was announced. The Virginia State Corporation Commission’s has enacted new rates for a 3-year period The new rates will be:

Credit Life Rates

Single Life Rate                      $0.6672/$1000/month

Discounted at 3.63% for interest and mortality

Joint Life Rate                        $1.1008/$1000/month

165% of single life rate

Single life rate per $100 @ 12 months         $0.4259

Joint life rate per $100 @ 12 months           $0.7027

Single Level Life per $100 @ 12 months     $0.7792

Joint Level Life per $100 @ 12 months       $1.2856

*Level life rates are derived from the rates per $1000 per month and discounted at 5.5% for interest and mortality.

Credit A&H Rates

14 Day Retro                             $1.56/$100 @ 12 months

30 Day Retro                            $1.12/$100 @ 12 months

14 Day Elim                               $1.25/$100 @ 12 months

30 Day Elim                              $ 0.78/$100 @ 12 months

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

Effective January 1, 2022.

Effective State Changes

CONNECTICUT

Among other provisions, Substitute House Bill 6100 modernizes and updates the motor vehicle Lemon Law, lays out procedures for filing a claim, and provides the Department of Consumer Protection increased enforcement mechanisms. Effective October 1, 2021.

HAWAII

House Bill 1192 creates a new small dollar installment loan scheme for loans up to $1,500. These loans must be precomputed. The maximum allowed interest rate is 36% with a maximum total rate for all interest and fees of 50% of the principal amount. A monthly maintenance fee is allowed: $25 on original principal amount up $299.99, $30 on an original principal amount of at least $300, up to $699.99, or $35 on an original principal amount of at least $700 or greater. Bill effective July 1, 2021; licensing requirements effective January 1, 2022.

LOUISIANA

House Bill 147 authorizes public license tag agents to charge a $23 convenience fee for their services. Previously that convenience fee was $18. Effective August 1, 2021.

Senate Bill 67 raises the Documentary Service Fee for the sale of a motor vehicle from $200 to $425. Effective August 1, 2021.

MAINE

Legislative Document 1141 amends the Service Contracts Act to include the replacement of motor vehicle keys or key fobs among other provisions. Effective 90 days after sine die adjournment.

MARYLAND

Signed on May 30, 2021, House Bill 44 creates the Clean Cars Act of 2021. Among other provisions, the bill extends the vehicle excise tax credit for the purchase of certain electric vehicles. Effective July 1, 2021.

NEBRASKA

Legislative Bill 649 establishes the Nebraska Financial Innovation Act to create digital asset depository institutions as a new financial institution to be supervised by the Nebraska Department of Banking and Finance. Effective August 27, 2021.

NEVADA

Assembly Bill 281 requires motor vehicle dealers to share certain records for short-term lessors be with the Department of Taxation, the Department of Motor Vehicles and certain local government employees upon request. Effective October 1, 2021.

Assembly Bill 298 affects motor vehicle leases in the state of Nevada. Among other updates to the law, the bill establishes the conditions under which a default by a lessee may be enforced, sets certain requirements for a lease, and requires certain language in lease contracts. Effective October 1, 2021.

SOUTH CAROLINA

House Bill 3505 applies the infrastructure maintenance fee to vehicle leasees at the time of registration at the Department of Motor Vehicles. Effective May 17, 2021.

TEXAS

House Bill 1698 allows for a county to charge a fee during vehicle registration in order to raise funds for a transportation project. Effective 90 days after sine die adjournment.

House Bill 2152 allows for online vehicle registration renewal. Effective September 1, 2021.

OKLAHOMA

The Department of Consumer Credit published the changes in dollar brackets for Retail Installment Sales and Consumer Loans. Effective July 1, 2021.

TENNESSEE

Tennessee House Bill 421 was signed into law on April 7, 2021. This new law increases fees and adds new fees an industrial loan entity may charge. Effective July 1, 2021.

TEXAS

The Texas Office of Consumer Credit Commissioner published dollar amount brackets and ceilings subject to adjustment in the Texas Financial Code for Retail Installment Sales and Consumer Loans. Effective July 1, 2021.

WYOMING

Signed into law on February 9, 2021, HB 8 consolidates consumer credit provisions for loans. Effective July 1, 2021.