Illinois Public Act 101-0031 provides that for sales and purchases of motor vehicles, the “selling price” includes the value of or credit given for a traded-in first division motor vehicle exceeding $10,000. While trade-in credit can exceed $10,000 to reduce the cost of the motor vehicle being purchased, for purposes of calculating Sales Tax or Use Tax due, the credit you can claim for a first division motor vehicle being traded in cannot exceed $10,000. Effective January 1, 2020.
On December 4, 2019 the Massachusetts’s Office of the Consumer Affairs and Business Regulation released Bulletin 2019-09 which updated the credit life and credit accident and health rates for motor vehicle dealers. The credit life rates per one thousand dollars of insurance in force per month shall be $0.58 for single life and $0.92 for joint life. The single premium rates for each one hundred dollars of initial indebtedness shall be $0.44 for the first four years of coverage, $0.32 per annum for each of the next three years of term coverage, and $0.16 per annum for each year thereafter. Effective from January 1, 2020 – December 31, 2022.
Signed into law on January 28, 2020, Michigan HB 4411 amends current statutes regarding credit services organizations. The new law details prohibited activities and requires certain disclosures to consumers receiving credit service organization services. Effective immediately.
On December 30, 2019, the Office of Superintendent of Insurance (“OSI”) published Bulletin 2019-018 regarding the presumptively acceptable credit life and credit accident and health premium rates. These rates were scheduled to go into effect on January 1, 2020. Under New Mexico’s regulations, this regulatory change was not properly noticed or calculated correctly. The OSI is currently declining to take into consideration claim loss when calculating insurer’s loss ratio. The implementation of the new rates is now scheduled for April 1, 2020. Insurers can expect a 10% reduction of the prima facia rates for credit life and credit accident and health. Effective April 1, 2020.
Signed on January 9, 2020, New Jersey SB 1712 requires new motor vehicle manufacturers, distributors, and factory branches to provide purchasers with a written statement summarizing vehicle warranty coverage for aftermarket and recycled parts. The statement is required within 90 days after the purchase or lease of a new motor vehicle. Effective immediately.
New Jersey SB 2998 was signed into law by Governor Phil Murphy on January 13. The law requires consumer lenders providing credit agreements that include lender-placed insurance to disclose the insurance. Creditors are also required to send a notice in the mail within 14 days of the placement of any such collateral protection insurance. Creditors that fail to provide these disclosures will be subject to fines of up to $25,000. The law will apply to any contract entered on or after the effective date. Effective April 12, 2020.
With SB 2252, the New Jersey legislature has supported the increased use of plug-in electric vehicles by providing incentives for the purchase or lease of such vehicles and charging equipment. The statute also aims to increase consumer awareness of the availability of incentives through a Statewide public education program. Effective immediately.
New Jersey SB 3206 establishes the “Unbanked and Underbanked Consumers Study Commission.” This Commission will evaluate how to create better access to financial services, review changes needed to address predatory banking practices, and examine the availability of banking locations in underserved areas, among other mandates. Effective immediately.
New York SB 3631 amends the insurance law and increases the number of covered items under service contracts in order to protect New Yorkers leasing automobiles from unanticipated “lease-end” charges. Effective immediately.
Rhode Island updated the Documentary Preparation Fee motor vehicle dealers are allowed to collect within the state. 280 RICR 30-20-1 raises the minimum threshold of the vehicle purchase price on which a dealer may charge the Documentary Preparation Fee from $7,500 to $10,000. Additionally, the fee itself has now increased from $200 to $400. Effective January 19, 2020.
On January 21, 2020, the CFPB published a new Policy Statement regarding Section 1031(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This Policy Statement seeks to give greater clarity regarding the meaning of abusive practices under the law. The Bureau wants to ensure that uncertainty surrounding the definition does not impede access to lawful financial products or services. The Policy Statement provides a framework for the exercise of supervisory and enforcement authority by the Bureau in regard to abusive acts or practices. Effective January 24, 2020.