February 2024

 

Effective State Changes

 

MICHIGAN

Bulletin 2024-05-CF stated that the loan processing fee amount will remain at $400 from January 1, 2024, through December 31, 2025. Effective January 1, 2024.

SB 533 amends the Michigan Code to allow the Secretary of State to issue an electronic vehicle title and establish an electronic system to facilitate transfers of vehicle ownership between private individuals instead of through the collection of paper documents. Effective February 13, 2024.

 

MISSOURI

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

 

NEW JERSEY

AB 4723 will now require vehicle dealers who accept used vehicles in for trade or from lease to offer to delete the consumer’s personal information from the vehicle’s computer systems. The dealer may charge a fee for this service which must be disclosed to the consumer and relay to the consumer that they may try to delete this information themselves. Effective January 16, 2024.

Once effective, SB 4084 will require new procedures for the issuing of temporary license plates and registration certificates in New Jersey. Vehicle dealers will now need to maintain a physical or electronic record of all temporary license plates issued for three years. Effective August 1, 2024.

 

OHIO

Governor Mike DeWine enacted HB 201 on December 28, 2023. This new law prohibits the Ohio Environmental Protection Agency from adopting any vehicle emissions stricter than the Clean Air Act. In addition, it restrains any state agency, township, or other locality from restricting the sale of a vehicle based solely on the energy source used for power. Effective March 28, 2024.

 

SOUTH CAROLINA

The Department of Consumer Affairs released its biannual dollar bracket adjustment effective from July 1, 2024, through June 30, 2026. Among the dollar bracket adjustments are:

• The maximum amount for consumer credit sales, consumer leases, and consumer loans increases from $115,000 to $127,500. (§2.104(1)(e), §2.106(1)(b), and §3.104(d), respectively).
• The maximum delinquency charge for sales and loan transactions increases from $23.00 to $25.50. (§2.203(1) and §3.203(1), respectively).
• The minimum delinquency charge for sales and loan transactions increases from $9.20 to $10.20. (§ 2.203(2) and §3.203(2), respectively).

Effective July 1, 2024.

 

TEXAS

On June 11, 2023, HB 2746 amended the Texas Finance Code regarding refunds for the termination of a debt cancelation agreement upon prepayment of a retail installment sale. In response, the Finance Commission of Texas released Regulation 286331r governing motor vehicle retail installment contracts. This regulation updates recordkeeping requirements for retail sellers who assign these retail installment contracts in Texas. Additionally, the regulation clarifies that retail sellers and third-party administrators are responsible for providing refunds upon termination of a debt cancellation agreement, holders must either issue a refund or provide written notice to the retail seller and administrator to issue a refund, and administrators and retail sellers are responsible for maintaining records of all refunds. Effective January 4, 2024.

 

WISCONSIN

On November 16, 2023, SB 259 was signed into law by Governor Evers. The bill exempts from payday loan regulation any transaction with no finance charges—as defined by the Truth in Lending Act Regulation Z—or other charges or fees. Effective immediately.

 

 

Effective Federal Changes

 

FEDERAL TRADE COMMISSION

The Federal Trade Commission issued the Combating Auto Retail Scams Trade Regulation Final Rule (“CARS Rule”) on December 12, 2023, with an effective date of July 30, 2024. The CARS Rule is an attempt by FTC to enhance consumer protections by combatting dealer bait-and-switch tactics and hidden “junk fees”.

The CARS Rule:

• Prohibits dealers from making certain misrepresentations in the course of selling, leasing, or arranging financing for motor vehicles;
• Requires accurate pricing disclosures in dealers’ advertising and sales communications;
• Requires dealers to obtain consumers’ express, informed consent for charges;
• Prohibits the sale of any add-on product or service that confers no benefit to the consumer; and
• Requires dealers to keep records of certain advertisements and customer transactions.

 

Effective July 30, 2024, however, the CARS Rule is currently on hold due to pending litigation.