Bill > HB2338

This bill amends the Motor Vehicle Retail Installment Sales Act to require auto dealers to provide more transparent information about third-party motor vehicle warranties (which are additional service contracts or protection plans not provided by the vehicle's original manufacturer). When a consumer requests information, the seller must provide a complete copy of the warranty contract and a written disclosure that outlines all potential costs, including deductibles, service fees, coverage limits, and out-of-pocket expenses. The bill also mandates that the disclosure clarify that claim approvals are made solely by the warranty provider, not the seller. Dealers can satisfy these requirements by providing a completed Federal Trade Commission Buyers Guide and, upon consumer request, the warranty contract and detailed cost disclosure. The bill protects sellers from liability if the warranty provider denies a claim or makes errors in its coverage description. The goal of this legislation is to help consumers better understand the terms and potential financial obligations associated with third-party vehicle warranties before making a purchase.