Compliance Alerts

Effective State Changes 


HB 2434 was signed by the Governor on March 22, 2018. The bill creates a "regulatory sandbox program" for new and innovative financial products. The law includes requirements for participants in the program, including disclosures for consumers. Effective July 16, 2018.

The Governor approved SB 1043 on April 5, 2018. SB 1043 updates the recording fees charged for certain real estate transactions. Effective June 30, 2019.

SB 1381 was signed by the Governor on April 5, 2018 and relates to the sale of service contracts in Arizona. The bill modifies the definition of service contract and exempts certain companies from the registration requirements. The bill further provides an extensive list of service contract disclosure requirements. Based on the date of presumed date of adjournment, the Effective Date is expected to be June 15, 2018.



SB 386 was signed by the Florida Governor on March 19, 2018. The bill amends Florida's Consumer Finance Law. Specifically, the bill removes the requirements that installments must be paid monthly and instead states that installments may be due every 2 weeks, semi-monthly, or monthly. The bill also modifies the allowable delinquency charge, as follows:

  • $15 per default for monthly payments
  • $7.50 per default for semi-monthly payments
  • $7.50 per default for payments due every 2 weeks if two payments are due in the same calendar month or $5.00 if three payments are due within the same calendar month.

Effective July 1, 2018.

SB 920 was approved by the Governor on March 19, 2018. The bill defines and places certain limits on deferred presentment installment transactions. Under the bill, the face amount of the check is limited to $1000 and fees are limited to no more than 8%. The term is defined as 60-90 days. The bill also includes language regarding the calculation of fees, required update notices, and charges for a longer first period. Effective July 1, 2019.



HB 521 / Chapter 116 provides for state regulation of motor vehicle service contracts. The bill modifies or addresses the following: the definition of a service contract, reimbursement policies, rules for service contracts, recordkeeping requirements, licensing, and violation penalties. Effective July 1, 2018.



The Governor signed HB 1063 on March 19. Included in the law are provisions relating to records that must be maintained in relation to the sale of a motor vehicle. The records must include, where applicable: finance agreement, sales receipt from auction, title affidavit, interim plates generated in error, and a copy of rebuilt vehicle disclosures. Effective July 1, 2018.

HB 1397 was signed by the Governor on March 13, 2018. The act broadly addresses financial institutions and modifies various banking, consumer and financial services laws. The bill adds "electronic funds transfer" to the sources of returned payments that may result in a $25 NSF charge.

A lender may charge a "skip-a-payment service fee" not to exceed $25, subject to additional restrictions listed in the bill. And the lender may charge a fee not to exceed $10 for optional "expedited payment service", subject to additional restrictions.

GAP Agreements may be entered into, subject to certain restrictions and disclosures. The bill removes the language that requires the price of GAP waivers to be "reasonable." Included among these specific requirements are:

  • GAP may not be required by the seller.
  • The charge for the initial term must be disclosed in writing.
  • A shorter term of GAP coverage than sale must be disclosed in writing.
  • The GAP agreement must include certain required descriptions of the motor vehicle and parties related to the transaction.
  • Non-refundable GAP Waivers may not exceed $400.

The bill also requires all creditors to process payments on the date the payments are received, except under certain specified circumstance. Effective July 1, 2018.

SB 377 was signed by the Governor on March 13, 2018. This bill adds a provision that allows the Department of Financial Institutions to capture and monitor transaction level activity relating to small loans regulated under IC 24-4.5-7. Effective July 1, 2018.



SB 2929 was approved by the Governor on March 26. The bill clarifies that GAP waivers are not insurance and therefore exempt from state insurance laws. The bill includes a definition of GAP Waiver and requirements for offering GAP waivers. These requirements include specified disclosures and provisions regarding cancellation, exemptions, and enforcement. Effective July 1, 2018.



The Department of Consumer Affairs released its biannual dollar bracket adjustment effective from July 1, 2018 through June 30, 2020. Among the dollar bracket adjustments are:

  • The consumer credit sale, consumer lease, and consumer loans defined maximum amount changes from $90,000 to $92,500. (§2.104(1)(e), §2.106(1)(b), and §3.104(d), respectively).
  • The maximum delinquency charge for sales and loans transactions changes from $18.00 to $18.50. (§ 2.203(1) and §3.203(1), respectively).
  • The minimum delinquency charge changes from $7.20 to $7.40. (§ 2.203(2)).

Effective July 1, 2018.



HB 1944 was signed by the Governor on March 23, 2018. The bill amends provision of the Tennessee Code related to Tennessee Industrial Loan and Thrift Companies. The bill changes the application of the interest rate to the amount financed rather than the total amount of the loan. The rates remain unchanged. The new term applies to loans made on or after March 23. Effective March 23, 2018.



HB 1056 was signed by the Governor on March 22. The bill provides protections for military service members in Washington. The bill expands the definition to include an active member who is either stationed in or a resident of Washington state. The previous language only provided protection for residents. In addition, the bill adds an allowance for costs and reasonable attorney fees for civil actions. Effective June 7, 2018.



HB 4186 was sent to the Governor on March 10, 2018 and became law without the Governor's signature on March 28. The bill clarifies that GAP Waivers in West Virginia are not insurance. It further provides terms and conditions for the sale of GAP waivers and procedures for borrowers to receive GAP waiver benefits. Effective June 8, 2018.



WI AB 663 / Act 161 as signed by the Governor on March 28. The bill provides that GAP waivers may be offered or sold in connection with a credit sale or lease of a vehicle. The bill also clarifies that a GAP waiver is not insurance. The bill also includes prohibitions on requiring GAP waivers as a condition of a purchase, specified disclosure requirements, procedures for the borrow to follow to receive GAP waiver benefits, and requirements for cancellation. The GAP waiver must be part of a separate addendum to the finance agreement for a motor vehicle. Under the Act, GAP is not to be considered interest or a finance charge. Effective September 1, 2018.