Bill Text: IA HSB32 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to refund payments made in connection with motor vehicle debt cancellation coverage.(See HF 133.)
Spectrum: Committee Bill
Status: (Introduced) 2023-01-26 - Committee report approving bill, renumbered as HF 133. [HSB32 Detail]
Download: Iowa-2023-HSB32-Introduced.html
House
Study
Bill
32
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
refund
payments
made
in
connection
with
1
motor
vehicle
debt
cancellation
coverage.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1091YC
(4)
90
es/rn
H.F.
_____
Section
1.
Section
537.2510,
Code
2023,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
10.
Notwithstanding
any
provision
of
3
this
chapter
to
the
contrary
or
an
agreement
between
a
motor
4
vehicle
dealer
licensed
pursuant
to
section
322.4
and
the
5
consumer,
if
the
creditor
is
a
financial
institution
as
defined
6
in
the
Iowa
consumer
credit
code,
chapter
537,
or
the
federal
7
Gramm-Leach-Bliley
Act
of
1999,
15
U.S.C.
§6801
et
seq.,
who
8
has
purchased
a
retail
installment
contract
as
defined
in
9
section
322.2,
subsection
22,
with
voluntary
debt
cancellation
10
coverage,
the
only
obligation
of
the
creditor
upon
prepayment
11
in
full
shall
be
to
notify
the
motor
vehicle
dealer
within
12
thirty
days
of
the
prepayment.
The
motor
vehicle
dealer
shall
13
promptly
determine
whether
the
consumer
is
eligible
for
a
14
refund
of
any
voluntary
debt
cancellation
coverage
and
shall
15
issue
any
refund
required
directly
to
the
consumer
within
sixty
16
days
of
the
dealer’s
receipt
of
notice
of
the
prepayment
from
17
the
creditor.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
motor
vehicle
debt
cancellation
22
coverage
refunds.
23
The
bill
provides
that
the
only
obligation
that
a
financial
24
institution
which
purchases
retail
installment
contracts
with
25
voluntary
debt
cancellation
coverage
has
upon
prepayment
in
26
full
is
to
notify
the
relevant
motor
vehicle
dealer
within
30
27
days
of
a
payment
in
full
of
an
installment
contract.
The
28
dealer
shall
determine
whether
the
consumer
is
entitled
to
a
29
refund
of
voluntary
debt
cancellation
coverage
and
issue
the
30
refund
within
60
days
of
notice.
31
-1-
LSB
1091YC
(4)
90
es/rn
1/
1