2024 -- H 7943 | |
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LC005148 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- | |
DECEPTIVE TRADE PRACTICES | |
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Introduced By: Representative Brian C. Newberry | |
Date Introduced: March 05, 2024 | |
Referred To: House Corporations | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 6-13.1-28 of the General Laws in Chapter 6-13.1 entitled "Deceptive |
2 | Trade Practices" is hereby amended to read as follows: |
3 | 6-13.1-28. Financing of motor vehicles — Term and rate of interest prominently |
4 | displayed. |
5 | (a) Any contract to finance the sale of a motor vehicle shall prominently display the term |
6 | and rate of interest. |
7 | (b) The borrower’s initials or signature shall appear immediately adjacent to the term and |
8 | to the rate of interest on the loan agreement that shall only serve as an acknowledgement that the |
9 | borrower has been informed of the terms and rate. The borrower shall also be required to separately |
10 | sign the loan agreement to bind himself or herself to the contract. |
11 | (c) No contract to finance the lease of a motor vehicle shall use the term "down payment", |
12 | "money down", or any similar language to describe lump sum payments made at the time of |
13 | financing to reduce monthly lease payments. The lessee shall be provided and required to |
14 | acknowledge a plain language disclosure in at least eleven (11) point font that any lump sum money |
15 | paid at the time of financing will not be returned if the vehicle is involved in an incident and |
16 | determined to be a total loss, regardless of the circumstances. |
17 | (c)(d) Any agreement to finance a motor vehicle that does not comply with the provision |
18 | of this section shall be voidable within thirty (30) days at the option of the borrower; provided, |
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1 | however, the borrower shall be responsible for any damage to the vehicle. |
2 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- | |
DECEPTIVE TRADE PRACTICES | |
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1 | This act would prohibit leasing disclosures to use terms such as, "down payment", "money |
2 | down", or any similar language to describe lump sum payments made to reduce monthly lease |
3 | payments. This act would provide that, in the event of a total loss of the motor vehicle, any lump |
4 | sum payments made are non-refundable, regardless of the circumstances. |
5 | This act would take effect upon passage. |
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LC005148 | |
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