Bill > S281

This bill introduces comprehensive regulations for debt waivers related to motor vehicle purchases in Massachusetts, establishing clear definitions and consumer protections. The legislation defines key terms such as "debt waiver" (including Guaranteed Asset Protection or GAP Waivers and excess wear and use waivers), and outlines specific requirements for how these financial products can be offered to consumers. The bill mandates that debt waivers must be clearly disclosed, cannot be a condition of credit, and must be separately stated without being considered a finance charge. Creditors must insure their debt waiver obligations and provide transparent documentation that explains the waiver's terms, cancellation procedures, and potential refunds. Consumers are guaranteed a "free look" period of at least 30 days during which they can cancel the waiver without penalty, and the bill ensures that the extension of credit cannot be contingent upon purchasing a debt waiver. The legislation also grants the commissioner authority to enforce these provisions, with the power to issue cease and desist orders and impose penalties of up to $500 per violation, not exceeding $10,000 in total for similar violations. Notably, state or federal banks and credit unions offering debt waivers in compliance with existing laws are exempt from these specific regulations.

Budget and Finance, Labor and Employment

https://malegislature.gov/Bills/194/S281