Bill > SB956

This bill, titled the "Buy-Here-Pay-Here Automobile Dealers Act," aims to protect consumers from unfair and deceptive practices by certain used-car dealers who finance their own sales, known as "buy-here-pay-here" dealers. These dealers sell older, higher-mileage vehicles to individuals who cannot secure traditional loans and often charge higher interest rates and require large down payments. The bill mandates that these dealers obtain a license from the Department of Corporations, similar to other finance lenders, and subjects them to specific regulations regarding lending and repossessions. It sets a cap on the annual percentage rate (APR) that can be charged, limiting it to the federal funds rate plus 17%, and requires a clear notice to buyers about their rights and how to report complaints. Furthermore, the bill establishes a grace period of 15 days before a vehicle can be repossessed for non-payment and limits repossession fees to $500, requiring licensed repossession agencies to carry out any repossessions. The bill also defines what constitutes a "buy-here-pay-here" dealer, generally those who don't assign most of their contracts to outside finance companies within 45 days, while exempting certain dealers who primarily lease newer vehicles or meet strict certification and technician standards.