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

     

     Introduced By: Representative Brian C. Newberry

     Date Introduced: March 05, 2024

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 6-13.1-28 of the General Laws in Chapter 6-13.1 entitled "Deceptive

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Trade Practices" is hereby amended to read as follows:

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     6-13.1-28. Financing of motor vehicles — Term and rate of interest prominently

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displayed.

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     (a) Any contract to finance the sale of a motor vehicle shall prominently display the term

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and rate of interest.

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     (b) The borrower’s initials or signature shall appear immediately adjacent to the term and

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to the rate of interest on the loan agreement that shall only serve as an acknowledgement that the

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borrower has been informed of the terms and rate. The borrower shall also be required to separately

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sign the loan agreement to bind himself or herself to the contract.

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     (c) No contract to finance the lease of a motor vehicle shall use the term "down payment",

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"money down", or any similar language to describe lump sum payments made at the time of

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financing to reduce monthly lease payments. The lessee shall be provided and required to

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acknowledge a plain language disclosure in at least eleven (11) point font that any lump sum money

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paid at the time of financing will not be returned if the vehicle is involved in an incident and

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determined to be a total loss, regardless of the circumstances.

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     (c)(d) Any agreement to finance a motor vehicle that does not comply with the provision

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of this section shall be voidable within thirty (30) days at the option of the borrower; provided,

 

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however, the borrower shall be responsible for any damage to the vehicle.

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     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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     This act would prohibit leasing disclosures to use terms such as, "down payment", "money

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down", or any similar language to describe lump sum payments made to reduce monthly lease

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payments. This act would provide that, in the event of a total loss of the motor vehicle, any lump

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sum payments made are non-refundable, regardless of the circumstances.

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     This act would take effect upon passage.

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