Compliance Alerts

December 2022 – January 2023


2022 Year in Review


Review of State Changes Effective in 2022



HB 335 allows a Small Loan licensee to collect a closing fee of $50 or 4% of the loan amount, whichever is less, amongst other provisions. Effective March 29, 2022.

SB 52 revises the language surrounding Alabama's warranty services for motor vehicle dealers. Effective June 1, 2022.



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

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



On May 11, the Colorado Department of Regulatory Agencies, Division of Insurance amended credit insurance regulation 3 CCR 702 Reg. 4-9-2. Effective July 15, 2022.

SB 223 allows motor vehicle dealers to deliver vehicles, documents, and test-drive vehicles away from its principal place of business. Effective August 10, 2022.



 HB 429 clarifies that a GAP waiver is exempt from insurance regulation. Effective October 14, 2022.



HB 749 allows for canceling the renewal of a service contract in the same manner as the contract was purchased. Effective June 3, 2022.

SB 546 prohibits a licensee from charging a prepayment penalty for paying back all or part of a loan principal before it is due. Effective October 1, 2022.



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

HB 733 allows property insurance and GAP waivers to provide compensation if there is an accident, loss, or stolen vehicle. Effective July 1, 2022, in part, and January 1, 2023.

HB 891 obligates a new 0.125% fee on the gross loan amount for every new installment loan under the Georgia Installment Loan Act, which shall be paid by the licensee. Effective July 1, 2022.



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.



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

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



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

SB 383 requires the retail value for a used motor vehicle be established by a third-party valuation provider to determine GAP coverage. Effective July 1, 2022.



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



SB 91 allows for established motor vehicle dealers to deliver vehicles purchased on the internet to customers at their request. Effective July 14, 2022.



On February 10, 2022, the Office of Consumer Affairs and Business Regulation released a letter stating a consumer may not be charged a cancellation fee for GAP waiver products.



Bulletin 2022-02-CF stated that the loan processing fee amount will remain at $400 from January 1, 2022 – December 31, 2023.



The Commerce Department published their periodic adjustment in dollar brackets, effective July 1, 2022.



AB 5033 authorizes motor vehicle dealers to sell vehicles online provided they meet certain physical requirements for their business premises. Effective January 18, 2022.



SB 4894 amends the law in New York requiring mail-loan checks to include any transaction fees and interest rates on the check. Effective September 2, 2022.

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.



SB 425 changes current statutes governing GAP waivers. Effective January 1, 2022.



SB 1687 specifically addresses 3-508B dollar bracket adjustments under the UCCC and ties the Consumer Price Index to December 2021. Effective November 1, 2022.

SB 1743 amends current law to allow financial protection products for motor vehicles to be offered, sold, or given to consumers. Effective November 1, 2022.



Regulation 125958 establishes a rebate program for zero-emission vehicles in Oregon. Effective May 19, 2022.



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



HB 7781 and companion bill SB 2794, revises Title 19 to expand the definition of “Licensed Activities” to include retail installment sales. Effective June 29, 2022.



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.

The Department of Consumer Affairs released its biannual dollar bracket adjustment effective from July 1, 2022, through June 30, 2024. Effective July 1, 2022.



SB 160 exempts service contracts from the insurance code and defines theft protection products and items covered under its warranties. Effective July 1, 2022.

HB 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.



Released in January 2022, the dollar brackets and ceilings will increase for Consumer Loans and Retail Installment Contracts. Effective July 1, 2022.



SB 183 requires certain financing entities register with the Department of Financial Institutions, amongst other provisions. Effective May 4, 2022.



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.

HB 1027 mandates that certain commercial financing providers register with the Commonwealth of Virginia's State Corporation Commission. Effective July 1, 2022.

HB 259 and SB 216 are identical bills that alter the compensation from manufacturers and distributors for recall and warranty parts and service. Effective July 1, 2022.



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

SB 5974 raises the Documentary Service Fee motor vehicle dealers can charge from $150 to $200. Effective July 1, 2022.



HB 4567 eliminates the municipal business and occupation or privilege tax for motor vehicle dealers over a three-year period. Effective June 9, 2022.



HB 64 defines theft protection programs, theft protection program warranties, and specifies that they are not insurance. Effective July 1, 2022.



Review of State Changes Effective in 2023 and Beyond



SB 48 provides that a GAP waiver may offer provisions which waive a certain amount or provide credit towards a replacement vehicle. Effective January 1, 2023.



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

AB 2001 allows licensees under the California Financing Law to designate employees who work remotely. Effective January 1, 2023.

AB 2956 allows for the suspension of a motor vehicle dealer license for a number of defined reasons. Effective January 1, 2023.

AB 2311 creates a number of new requirements for GAP waiver products under which a seller agrees to cancel or waive amounts due on the buyer's sale contract. Effective January 1, 2023.

AB 1904 makes it a violation of California law to not present certain disclosures to a consumer of certain financial products. Effective January 1, 2023.

AB 2912 makes a product's delivery date the starting date for any express warranty offered by a manufacturer, distributor, or retail seller. Effective January 1, 2023.

SB 1311 is the Military and Veteran Consumer Protection Act of 2022 and provides new and enhanced protections to servicemembers. Effective January 1, 2023.

AB 984 authorizes alternative license plates, stickers, tabs, and registration cards. Effective January 1, 2023.

AB 1871 states that vehicle history reports must include information for the vehicle buyer to be able to contact the reporting business or agency. Effective January 1, 2023.



The document preparation fee in the State of Illinois increased to $347.26. Effective January 1, 2023.



HB 284 allows for the Kentucky Transportation Cabinet to establish an electronic title application and registration system. Effective date January 1, 2024.

HB 8 increases the county registration and renewal fees for electric vehicles to $120 and for hybrid vehicles to $60. Effective January 1, 2023.



HB 1031 imposes a road usage fee in the amount of $110 per year for electric vehicles and $60 per year on hybrid vehicles. Effective January 1, 2023.



The document preparation fee in the State of Michigan has been adjusted to be $260 or 5% of the cash price for 2023 and 2024. Effective January 13, 2023.



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

SB 902 imposes certain consumer protection requirements on service contract providers. Effective August 1, 2023.



HB 132 enacts a 36% TILA APR rate cap for small dollar loans in New Mexico. Effective January 1, 2023.



The document preparation fee in the State of Pennsylvania for 2023 increased to $449 for electronic filings and $374 for non-electronic. Effective January 1, 2023.



South Carolina Department of Insurance adopted Orders confirming Prima Facie Credit A&H and Credit Property insurance rates for 2023. Effective January 1, 2023.



HB 186 raises the registration and renewal fees for plug-in hybrid vehicles and hybrid electric vehicles. Effective January 1, 2023.



Review of Federal Changes Effective in 2022



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 Act. Effective January 1, 2022.

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



Review of Federal Changes Effective in 2023



The CFPB published TILA threshold adjustments for Regulation M and Z from $61,000 to $66,400. Effective January 1, 2023.



The FTC announced on November 15, 2022 that it was extending the compliance deadline for the revised Safeguards Rule by six months. Effective June 9, 2023.