March 2024

 

Effective State Changes

 

INDIANA

SB 220 updates references to federal law made in the Indiana Uniform Consumer Credit Code, the First Lien Mortgage Lending Act, and the Indiana Code title governing financial institutions. Effective July 1, 2024.

On March 13, 2024, SB 222 was signed into law by Governor Eric Holcomb. This bill has many provisions aimed at vehicle dealers, such as requiring any item that is not a part of the advertised sale price of a vehicle to be a separate line item in the contract, obligating the consumer of a rebuilt or salvage vehicle to sign a written acknowledgement of its status, and directing dealers to submit records electronically within ten days of a request related to an investigation or audit by the Indiana Secretary of State. Effective July 1, 2024, in part and on July 1, 2025, in part.

 

NEW HAMPSHIRE

The Expectation of Privacy Act or SB 255 was signed into law on March 6, 2024. This law establishes requirements for data processors in control of private data or personal information of consumers by establishing rights and responsibilities of “consumers” and “controllers” of said data. Effective January 1, 2025.

 

SOUTH DAKOTA

HB 1063 will require county treasurers to collect evidence that a motor vehicle sales or other tax was paid to another state when an applicant applies to register their motor vehicle in the state. If no evidence exists, the applicant will be required to pay tax on the vehicle by using a national motor vehicle valuation service to establish the price of the vehicle when the applicant first brought it into South Dakota. Effective July 1, 2024.

SB 112 will now allow any owner without a South Dakota license or identification card to title a motor vehicle, off-road vehicle, snowmobile, or boat in South Dakota by paying a $100 fee in addition to the title application fee. Effective July 1, 2024.

 

TEXAS

Released in February 2024, the dollar amount brackets and ceilings subject to adjustment in the Texas Finance Code will increase as follows:

Consumer Loans – §342.201

(Add-On Rates)

$18 per $100 per annum of the cash advance to $2,640 plus,

$8 per $100 per annum of the excess to $22,000

OR

(Simple Melded Rates)

30% per annum of the cash advance to $4,400 plus,

24% of the excess to $9,240 plus,

18% of the remainder to $22,000

 

Alternate Consumer Loans Subchapter F – §342.251

Loan Amount	Acquisition Charge plus Installment Acct Handling Charge
Under $30	$1 for each $5 cash advanced
From $30 up to $35	10% cash advance plus $3 per month
From $35.01 up to $70	10% cash advance plus $3.50 per month
From $70.01 up to $100	10% cash advance plus $4 per month
From $100.01 up to $880	$10 plus $4 per month for each $100 of the cash advance
From $880.01 up to $1,760	$10 plus $4 per month for each $100 of the cash advance

                                          

 

Retail Installment Sales (“Other Goods”) – §345.055

(Add-On Rates)

$12 per $100 per annum of the principal balance to $4,400 plus,

$10 per $100 per annum of the excess to $8,800 plus,

$8 per $100 per annum of the remainder.

Effective July 1, 2024.

 

UTAH

HB 174 was adopted into law on March 13, 2024. The law requires a person who provides a product or service under a contract with an automatic renewal provision to provide notice at least 30 but not more than 60 days before the renewal date. The notice must contain certain disclosures regarding the renewal and cancelation of said contract. Utah’s Division of Consumer Protection is authorized to enforce this law with fines and penalties if any provisions are violated. Effective May 5, 2024, in part, and January 1, 2025, in part.

 

SB 25 requires a consumer lender to register with the Nationwide Multistate Licensing System and Registry and submit proof of registration to Utah’s commissioner of financial institutions. Effective May 1, 2024.

 

WEST VIRGINIA

Following trends seen throughout the country in 2023, West Virginia SB 173 was signed into law on March 13, 2024, and amends the laws governing motor vehicle dealers, distributors, manufacturers, and affiliated entities. The law clarifies terms and responsibilities around warranty and recall work and reimbursement, prohibits manufacturers from using incentive programs to amend dealer agreements, and prohibits manufacturers from altering dealer franchise agreements in case of a dealership sale, amongst other provisions. Effective June 5, 2024.

 

 

Effective Federal Changes

 

CONSUMER FINANCIAL PROTECTION BUREAU

On March 5, 2024, the Consumer Financial Protection Bureau ("CFPB") released a final rule amending Regulation Z, which implements the Truth in Lending Act, to decrease the late fee “safe harbor” amount for larger card issuers from $30 to $8. According to the CFPB’s notice, the final rule takes effect 60 days after its publication in the Federal Register. However, two days after the rule was issued, the Chamber of Commerce of the United States of America, Fort Worth Chamber of Commerce, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and Texas Association of Business filed a lawsuit in the Fifth Circuit to invalidate the rule and requested a preliminary injunction from its application throughout trial. Effective May 5, 2024, absent any court-imposed postponement.