2024 Year in Review & Upcoming Changes in 2025

 

 

Review of State Changes Effective in 2024

 

ALASKA

• HB 233 makes changes to the auto warranty statute by adding time allowances to the schedule of compensation for dealers’ warranty work. Effective October 27, 2024.

 

COLORADO

• HB 1089 tasks the state to create an electronic communication system for vehicle owners for registration and license plates. Effective June 3, 2024.
• SB 192 revamps Colorado’s Lemon Law for new vehicles. Effective August 7, 2024.

 

DELAWARE

• Senate Substitute No. 2 for SB 278 creates new protections for motor vehicle franchise dealers in the state of Delaware. Effective August 29, 2024.

 

FLORIDA

• HB 1347 changes the bracketed rate structures and tiers of the Consumer Finance Act, covering loans up to $25,000. Effective July 1, 2024.
• SB 902 created the Florida Vehicle Value Protection Agreements Act. Effective October 1, 2024.

 

GEORGIA

• HB 1100 authorizes the use of electronic notifications by the state regarding motor vehicle insurance coverage and title status. Effective April 22, 2024.

 

ILLINOIS

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

 

INDIANA

• The Indiana Secretary of State increased the allowable Documentation Preparation Fee to $245.28 up from $237.51. Effective July 1, 2024.

 

IOWA

• HF 2185 mandates that the certificate of title for a motor vehicle will no longer include the previous owner’s name and address. Effective July 1, 2024.
• SF 2362 prohibits the sale of service contracts in Iowa unless certain provisions are met. Effective July 1, 2024.

 

KANSAS

• HB 2098 allows the purchaser of a new or used vehicle a sales tax deduction due to the recent sale of another vehicle. Effective July 1, 2024.
• SB 345 creates the Commercial Financing Disclosure Act requiring the disclosure of certain commercial financing transaction terms. Effective July 1, 2024.

 

LOUISIANA

• SB 372 eliminates the registration and renewal fees for providers of motor vehicle service contracts. Effective August 1, 2024.

 

MAINE

• LD 2072 requires the state to provide a printed certificate of title, if requested, by a lienholder participating in the electronic lien titling system. Effective August 9, 2024.

 

MARYLAND

• HB 352 and SB 362 raised the annual vehicle registration fees and the maximum dealer processing charge (or doc fee) from $500 to $800. Effective June 1, 2024.

 

MICHIGAN

• HB 5460 allows a retail installment sales contract for a vehicle to provide for a series of monthly payments in unequal payment amounts. Effective July 23, 2024.
• Bulletin 2024-05-CF stated that the loan processing fee amount will remain at $400 through December 31, 2025. Effective January 1, 2024.
• SB 533 allows the state to issue an electronic vehicle title and establish an electronic system to facilitate vehicle ownership transfers. Effective February 13, 2024.

 

MINNESOTA

• HF 2887 increases the maximum Documentary fee to the lesser of $275 or an amount equal to ten percent of the value of the sale or lease. Effective July 1, 2024.
• The Minnesota Commerce Department published the periodic adjustment in dollar amounts effective through June 30, 2026. Effective July 1, 2024.

 

MISSISSIPPI

• SB 2543 increased the maximum amount to $5,100 for loans permitted under the Mississippi Consumer Alternative Installment Loan Act. Effective July 1, 2024.

 

MISSOURI

• The document preparation fee in Missouri was increased through emergency rulemaking from $565.38 to $587.43 for 2024. Effective February 23, 2024.

 

NEBRASKA

• LB 1317 creates a $150 registration fee for a vehicle powered by an alternative fuel and a $75 fee for a motorcycle or plug-in hybrid. Effective April 25, 2024.

 

NEW HAMPSHIRE

• HB 1243 replaced the Retail Installment Sales of Motor Vehicles Chapter, significantly changing existing law. Effective July 1, 2024, in part, and September 1, 2024.

 

NEW JERSEY

• AB 4702 phases out the sales and use tax exemption on zero-emission vehicles. Effective June 28, 2024.
• AB 4011 amends the Transportation Trust Fund Authority Act imposing a $250 fee for any zero-emission vehicle registered in the state. Effective July 1, 2024.
• SB 4084 requires new procedures for the issuing of temporary license plates and registration certificates in New Jersey. Effective August 1, 2024.

 

NEW YORK

• AB 4066 establishes vehicle manufacturers must pay reasonable compensation to franchise dealers for warranty work. Effective September 4, 2024.

 

OHIO

• SB 94 establishes processes for releasing electronic liens once a security interest is discharged. Effective October 24, 2024.

 

OKLAHOMA

• The Department of Consumer Credit published adjustments to allowable charges for retail installment contracts and small loans. Effective July 1, 2024.

 

SOUTH CAROLINA

• The Department of Consumer Affairs released its biannual dollar bracket adjustment effective through June 30, 2026. Effective July 1, 2024.
• The South Carolina Department of Insurance adopted orders confirming Prima Facie Credit A&H and Credit Property insurance rates. Effective January 1, 2024.
• SB 434 prohibits automatic service contract renewals unless the provider notifies the contract holder within a certain timeframe. Effective May 20, 2024.

 

SOUTH DAKOTA

• HB 1063 requires county treasurers to collect evidence of sales or other tax paid to another state at the time of vehicle registration. Effective July 1, 2024.
• SB 112 allows any non-resident owner to title a motor vehicle, off-road vehicle, snowmobile, or boat in South Dakota by paying a $100 fee. Effective July 1, 2024.

 

TENNESSEE

• HB 2075 and companion bill SB 1837 creates a new statewide electronic lien and title system to be implemented by December 31, 2025. Effective May 1, 2024.
• SB 1140 allows motor vehicle dealers to retain 2% of the first $2,500 and 1.15% on anything above $2,500 of sales taxes due to the state. Effective May 28, 2024.

 

TEXAS

• The Texas OCCC published dollar brackets and ceilings subject to adjustment for Retail Installment Sales and Consumer Loans. Effective July 1, 2024.
• The OCCC released TRD-202403782 and TRD-202405041 revising regulations for vehicle sales financing and vehicle installment sales. Effective November 14, 2024.
• The OCCC updated the documentary fee for a motorcycle, moped, ATV, boat, boat motor, boat trailer, or towable recreational vehicle. Effective September 5, 2024.
• The OCCC updated the Acquisition Charge for Small Loans (Subchapter F) and the Administrative Fee and Large Loans (Subchapter E). Effective July 11, 2024.
• HB 2746 amended the Texas Finance Code regarding refunds for the termination of a debt cancelation agreement upon prepayment. Effective January 4, 2024.

 

UTAH

• HB 174 requires a person who provides a product or service with an automatic renewal provision to provide notice prior to the renewal date. Effective, in part, May 5, 2024.

 

VIRGINIA

• HB 744 adds new consumer protections to Virginia law regarding the automatic renewal of service offers. Effective July 1, 2024.
• HB 1106/SB 452 directs independent vehicle dealers to pass a DMV examination which costs $50 in order to renew a dealership license. Effective July 1, 2024.

 

WEST VIRGINIA

• The Motor Vehicle Dealers’ Advisory Board approved an increase in the maximum Documentary Fee from $499 to $575. Effective July 1, 2024.

 

 

Review of State Changes Effective in 2025 and Beyond

 

CALIFORNIA

• AB 1755 streamlines the civil process for lemon law disputes. Effective January 1, 2025.
• SB 1521 allows certain fees for commercial financing if properly disclosed. Effective January 1, 2025.
• SB 1096 requires certain language be disclosed in at least 16-point bold font on the front of an envelope soliciting consumer financial information. Effective January 1, 2025.

 

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 $367.70. Effective January 1, 2025.

 

IOWA

• HF 674 allows any county treasurer to issue certificates of title, registrations, and perfect security interests outside of their county. Effective January 1, 2025.

 

KANSAS

• HB 2247 changes the threshold amount and rates for consumer loans and retail installment sales, amongst a host of other provisions. Effective January 1, 2025.

 

KENTUCKY

• HB 8 removes the $60 ownership fee for hybrid vehicles that do not have plug-in charging capability in the state of Kentucky. Effective January 1, 2025.

 

MISSISSIPPI

• HB 1589 provides that a lienholder must electronically transmit to the Department of Revenue within 14 days of release of the lien. Effective January 1, 2025.

 

SOUTH CAROLINA

• The South Carolina Department of Insurance adopted orders confirming Prima Facie Credit A&H and Credit Property insurance rates. Effective January 1, 2025.

 

VERMONT

• HB 546 allows a sales tax deduction for the previous sale of another ATV, as long as it was sold within 3 months of the purchase of a new ATV. Effective January 1, 2025.

 

VIRGINIA

• The Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2025, enacts insurance rates for the next 3 years. Effective January 1, 2025.

 

WISCONSIN

• SB 668 overhauled the Department of Financial Institutions’ oversight of non-mortgage licensed financial service providers. Effective January 1, 2025.

 

 

Review of Federal Changes Effective in 2024

 

CONSUMER FINANCIAL PROTECTION BUREAU

• Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2024.
• The CFPB increased TILA threshold adjustments for Regulation M and Z from $66,400 to $69,500. Effective January 1, 2024.
• The CFPB released a final rule to decrease the late fee “safe harbor” amount for larger card issuers from $30 to $8. Due to pending litigation, the rule is on hold.

 

FEDERAL TRADE COMMISSION

• The FTC issued CARS Rule on December 12, 2023, with an effective date of July 30, 2024. Due to pending litigation, the rule is on hold.

 

 

Review of Federal Changes Effective in 2025

 

CONSUMER FINANCIAL PROTECTION BUREAU

• The CFPB increased TILA threshold adjustments for Regulation M and Z from $69,500 to $71,900. Effective January 1, 2025.
• Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2025.