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Senate Study Bill 1020 - IntroducedA Bill ForAn Act 1relating to refund payments made in connection with
2motor vehicle debt cancellation coverage.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 537.2510, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 10. Notwithstanding any provision of
4this chapter to the contrary or an agreement between a motor
5vehicle dealer licensed pursuant to section 322.4 and the
6consumer, if the creditor is a financial institution as defined
7in the Iowa consumer credit code, chapter 537, or the federal
8Gramm-Leach-Bliley Act of 1999, 15 U.S.C. §6801 et seq., who
9has purchased a retail installment contract as defined in
10section 322.2, subsection 22, with voluntary debt cancellation
11coverage, the only obligation of the creditor upon prepayment
12in full shall be to notify the motor vehicle dealer within
13thirty days of the prepayment. The motor vehicle dealer shall
14promptly determine whether the consumer is eligible for a
15refund of any voluntary debt cancellation coverage and shall
16issue any refund required directly to the consumer within sixty
17days of the dealer’s receipt of notice of the prepayment from
18the creditor.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to motor vehicle debt cancellation
23coverage refunds.
24The bill provides that the only obligation that a financial
25institution which purchases retail installment contracts with
26voluntary debt cancellation coverage has upon prepayment in
27full is to notify the relevant motor vehicle dealer within 30
28days of a payment in full of an installment contract. The
29dealer shall determine whether the consumer is entitled to a
30refund of voluntary debt cancellation coverage and issue the
31refund within 60 days of notice.
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2motor vehicle debt cancellation coverage.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 537.2510, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 10. Notwithstanding any provision of
4this chapter to the contrary or an agreement between a motor
5vehicle dealer licensed pursuant to section 322.4 and the
6consumer, if the creditor is a financial institution as defined
7in the Iowa consumer credit code, chapter 537, or the federal
8Gramm-Leach-Bliley Act of 1999, 15 U.S.C. §6801 et seq., who
9has purchased a retail installment contract as defined in
10section 322.2, subsection 22, with voluntary debt cancellation
11coverage, the only obligation of the creditor upon prepayment
12in full shall be to notify the motor vehicle dealer within
13thirty days of the prepayment. The motor vehicle dealer shall
14promptly determine whether the consumer is eligible for a
15refund of any voluntary debt cancellation coverage and shall
16issue any refund required directly to the consumer within sixty
17days of the dealer’s receipt of notice of the prepayment from
18the creditor.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to motor vehicle debt cancellation
23coverage refunds.
24The bill provides that the only obligation that a financial
25institution which purchases retail installment contracts with
26voluntary debt cancellation coverage has upon prepayment in
27full is to notify the relevant motor vehicle dealer within 30
28days of a payment in full of an installment contract. The
29dealer shall determine whether the consumer is entitled to a
30refund of voluntary debt cancellation coverage and issue the
31refund within 60 days of notice.
-1-es/rn