H.F. 133 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 1091HV (1) 90 es/rn 1/ 1