2023 Year in Review & Upcoming Changes in 2024

 

 

Review of State Changes Effective in 2023

 

CALIFORNIA

• AB 2311 creates new requirements for GAP waivers when canceled. 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.

 

CONNECTICUT

• SB 1033 clarifies the types of fees included in the “Finance Charge” for calculating a Military Lending Act APR. Effective in part July 1, 2023, and October 1, 2023.

 

GEORGIA

• HB 55 amends and repeals certain laws in the state of Georgia regarding financing, banking, and international banking corporations. Effective July 1, 2023.

 

HAWAII

• SB 1534 replaces the current $50 registration fee for electric vehicles with a mileage-based usage charge, beginning July 1, 2025.

 

ILLINOIS

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

 

INDIANA

• Indiana published Emergency Rule LSA Document #22-234(E) which implements certain bracket updates for sales and loans. Effective January 1, 2023.
• The Consumer Credit Division released Advisory Letter 2023-01 regarding the fees associated with the electronic lien system. Effective July 1, 2023.
• New guidance from the Secretary of State’s Auto Dealer Services Division raised the maximum documentation preparation fee to $237.51. Effective July 25, 2023.

 

KENTUCKY

• HB 8 increases the county registration and renewal fees for electric vehicles to $120 and for hybrid vehicles to $60. Effective January 1, 2023.
• SB 165 makes changes to the brackets which consumer loan companies can charge for small loans. Effective June 28, 2023.

 

LOUISIANA

• 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.

 

MICHIGAN

• 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.

 

MINNESOTA

• HF 2887 raises the Doc Fee allowed to be charged by Minnesota motor vehicle dealers. Effective July 1, 2023.

 

MISSOURI

• The document preparation fee was increased through emergency rulemaking from $523.50 to $565.38 for 2023. Effective February 14, 2023.

 

MONTANA

• HB 60 creates an additional annual registration fee for electric and hybrid vehicles. Effective July 1, 2023.

 

NEBRASKA

• LB 92 enacts new licensing requirements for small dollar lenders. Effective June 7, 2023.

 

NEW MEXICO

• HB 132 enacts a 36% TILA APR rate cap for small dollar loans in New Mexico. Effective January 1, 2023.
• The Director of the Financial Institution Division published regulations for calculating an New Mexico APR in accordance with House Bill 132. Effective March 29, 2023.

 

NORTH CAROLINA

• SB 452 allows a convenience fee to be charged when accepting premium payments via credit or debit card. Effective October 1, 2023.
• SB 329 changes the maximum finance charge rates for consumer credit installment sale contracts. Effective October 1, 2023.
• SB 331 amends the North Carolina Consumer Finance Act and outlines the rate of interest that may be charged on consumer finance loans. Effective October 1, 2023.

 

NORTH DAKOTA

• SB 2141 excludes the fees for auction services from the purchase price of a motor vehicle for excise tax purposes. Effective July 1, 2023.

 

OHIO

• HB 23 provides for a registrar or deputy registrar to collect additional fees for hybrid, plug-in hybrid and electric vehicles. Effective June 30, 2023.

 

OKLAHOMA

• HB 1543 ties the finance charge thresholds for §3-508B loans to the CPI Reference Base Index of December 2020. Effective April 28, 2023.
• SB 794 adds the federal funds rate to the allowable finance charge amount for §3-508A loans. Effective November 1, 2023.
• The Department of Consumer Credit published adjustments to allowable charges for retail installment contracts and small loans. Effective July 1, 2023.
• SB 984 establishes the motor vehicle excise tax sale shall be calculated based on the difference of the actual sales price and a trade-in. Effective November 1, 2023.

 

PENNSYLVANIA

• 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

• 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 3952 creates new requirements for the disclosure of vehicle sales closing fees. Effective May 16, 2023.

 

TENNESSEE

• SB 130 requires a financing company to provide their telephone number in all communications with a consumer. Effective July 1, 2023.

 

TEXAS

• Released in February 2023, the dollar brackets and ceilings increased for consumer loans and retail installment contracts. Effective July 1, 2023.
• SB 505 creates an additional fee of $400 for new electric vehicles registering for a two-year period. Effective September 1, 2023.
• HB 2746 creates new requirements for the refund of a terminated GAP product. Effective September 1, 2023.

 

WEST VIRGINIA

• SB 205 creates new specialty plates in the state of West Virginia and establishes the fees for their purchase. Effective June 6, 2023.

 

 

Review of State Changes Effective in 2024 and Beyond

 

CALIFORNIA

• AB 1756 addresses the refunding of GAP waiver products. Effective January 1, 2024.
• SB 33 eliminates the sunset provision requiring the cost of commercial credit be expressed as an annualized rate. Effective January 1, 2024.
• SB 478 declares that advertising or displaying the price of a vehicle without listing all mandatory fees to be unfair and deceptive. Effective January 1, 2024.
• SB 666 prohibits specific fees from being charged by lenders and finance brokers in certain commercial financing transactions. Effective January 1, 2024.

 

COLORADO

• HB 1181 enacts guaranteed asset protection product provisions into Colorado law. Effective January 1, 2024.
• HB 1229 opts Colorado out of the Federal Depository Institutions Deregulation and Monetary Control Act and amends the rate structure for consumer loans of $1,000 or less. Effective in part January 1, 2024, and July 1, 2024.

 

CONNECTICUT

• SB 1032 provides for new disclosure requirements in the context of commercial financing. Effective July 1, 2024.

 

ILLINOIS

• The document preparation fee in the State of Illinois increased to $358.03. Effective January 1, 2024.

 

MINNESOTA

• SF 2744 includes a 50% rate cap for small and short term loans and requires an ability to repay analysis when charging over 36%. Effective January 1, 2024.

 

OREGON

• HB 2100 increases the document preparation fees that motor vehicle dealers are allowed to charge. Effective January 1, 2024.

 

SOUTH CAROLINA

• The South Carolina Department of Insurance adopted orders confirming Prima Facie Credit A&H and Credit Property insurance rates. Effective January 1, 2024.

 

VERMONT

• HB 494 passed the transportation appropriations bill affecting certain motor vehicle fees. Effective January 1, 2024.

 

WISCONSIN

• The Commissioner of Insurance released the Prima Facie Credit Life and Credit Accident and Sickness insurance rates. Effective January 1, 2024 – December 31, 2026.

 

 

Review of Federal Changes Effective in 2023

 

CONSUMER FINANCIAL PROTECTION BUREAU

• Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2023.
• The CFPB increased TILA threshold adjustments for Regulation M and Z from $61,000 to $66,400. Effective January 1, 2023.
• The CFPB published a proposed rule to require certain nonbanks to register and submit information in an online, publicly available database.

 

FEDERAL TRADE COMMISSION

• 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.

 

 

Review of Federal Changes Effective in 2024

 

CONSUMER FINANCIAL PROTECTION BUREAU

• The CFPB increased TILA threshold adjustments for Regulation M and Z from $66,400 to $69,500. Effective January 1, 2024.