01/07/04 2572s

01/29/04 0080s

15Apr2004… 0907h

2004 SESSION

03-1179

05/10

SENATE BILL 207

COMMITTEE: Banks

AMENDED ANALYSIS

This bill provides that retail installment sales of motor vehicles are exempt from the consumer protection act when such trade or commerce is regulated by the bank commissioner pursuant to RSA 361-A. The bill also requires motor vehicle sellers that offer retail installment contracts contingent on financing approval to notify buyers of their right to cancel, and to a complete refund, if the anticipated financing terms are not obtained.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01/07/04 2572s 03-1179

1/29/04 0080s 05/10

15Apr2004… 0907h

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

Be it Enacted by the Senate and House of Representatives in General Court convened:

141:1 Consumer Protection; Exempt Transactions; Retail Installment Sales. Amend RSA 358-A:3, I to read as follows:

I. Trade or commerce that is subject to the jurisdiction of the bank commissioner, the director of securities regulation, the insurance commissioner, the public utilities commission, the financial institutions and insurance regulators of other states, or federal banking or securities regulators who possess the authority to regulate unfair or deceptive trade practices. This paragraph includes trade or commerce under the jurisdiction of, and regulated by, the bank commissioner pursuant to RSA 361-A, relative to retail installment sales of motor vehicles.

141:2 New Paragraph; Retail Installment Sales; Powers of the Bank Commissioner. Amend RSA 361-A:5 by inserting after paragraph VI the following new paragraph:

VII. The commissioner shall have the authority to investigate conduct that is or may be in violation of this chapter, may hold hearings relative to such conduct, and may order restitution for a person adversely affected by such conduct.

141:3 Retail Installment Sales; Enforcement; Cooperation with and Referral to the Attorney General. Amend RSA 361-A:6 to read as follows:

361-A:6 [Assistants] Enforcement; Cooperation With and Referral to the Consumer Protection and Antitrust Bureau of the Department of Justice.

I. For the enforcement of the provisions of this chapter, the commissioner [is authorized to] shall appoint and designate, subject to the provisions of the personnel law, [such] personnel [as are necessary] to respond to consumer complaints and enforce this chapter. Such personnel shall request the assistance and services of the consumer protection and antitrust bureau of the department of justice when appropriate. The salary, traveling expenses, and all expenses of administration and enforcement of the provisions of this chapter shall be paid out of fees received from licenses issued under this chapter, and funds collected pursuant to RSA 383:11.

II. Any unfair or deceptive trade practice that is not addressed under the provisions of this chapter shall be referred to the consumer protection and antitrust bureau for enforcement under the provisions of RSA 358-A.

141:4 New Section; Retail Installment Sales; Spot Delivery. Amend RSA 361-A by inserting after section 10-a the following new section:

361-A:10-b Sale Contingent on Financing Approval. Any retail seller who delivers a motor vehicle to a retail customer before the retail seller has obtained financing approval from a sales finance company shall provide a disclosure, containing the following language in a size equal to at least 10 point bold type, which must be signed by the retail buyer:

“The retail seller of the motor vehicle has not obtained financial approval for the terms contained in the retail installment contract from a sales finance company. If the retail seller obtains financial approval from a sales finance company under the terms of the retail installment contract, the sale shall be final and binding on the retail seller and the retail customer. If final approval of the terms of the retail installment contract cannot be obtained from a sales finance company, the retail installment contract shall be canceled. The retail seller shall return to the buyer any consideration received in the transaction, including, but not limited to, any motor vehicle traded in, any deposit, and any fees paid by the buyer. The buyer shall, upon being notified that the retail seller was unable to obtain financing approval, return the motor vehicle to the retail seller.”

141:5 Effective Date. This act shall take effect 60 days after its passage.

(Approved: May 24, 2004)

(Effective Date: July 23, 2004)