SB 1162

Abstract

Amends the Consumer Fraud and Deceptive Business Practices Act. Requires a motor vehicle dealer, who enters into a retail transaction where a consumer trades in or sells a vehicle that is subject to a lien to a dealer, to: (i) within 7 calendar days of the date of sale, give written notice to the lien holder of the traded-in or sold vehicle that the vehicle has been traded in or sold to the motor vehicle dealer; (ii) within 14 calendar days of the date of sale or within 10 calendar days of receiving payment in full for the motor vehicle sold to the consumer, whichever date is earlier, remit payment to the lien holder to pay off the lien on the traded-in or sold motor vehicle, unless the underlying contract has been rescinded before expiration of 14 calender days; (iii) within 5 calendar days of rescission of a contract give written notice to the lien holder that the contract has been rescinded and that the motor vehicle originally traded in or sold has been returned to the consumer, if the underlying contract entered into between the motor vehicle dealer and the consumer has been rescinded for any reason before the expiration of 14 days; and (iv) fully comply with the certain provisions of the Act if the contract entered into between the motor vehicle dealer and the consumer is rescinded for any reason. Provides that a motor vehicle dealer who violates these provisions commits an unlawful practice within the meaning of the Act.