April 2025

 

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.