On Sep. 11, MCH INS implementing motor vehicle sales finance act.
MCH INS issued Bulletin 2024-24-CF on motor vehicle sales, unequal repayment plans.
Bulletin provides guidance on the implementation of Public Act (PA) 94 of 2024 (House Bill 5460), Motor vehicle sales finance act, effective Jul. 23, 2024, see #217486.
Informed of basic requirements pertaining to installment sale contracts with unequal repayment plans, announced temporary accommodation to prevent undue hardship.
Installment Sale Contracts
Act allows installment sale contracts with series of monthly payments in unequal payments over course of contract, if for new motor vehicle, not used or secondhand.
If contract includes below Truth-In-Lending disclosure box, notice customer review payment schedule to determine if contract requires payments in equal amounts.
Also, that the amount of any payment under the installment sale contract does not increase more than 40% from the amount of the first scheduled payment.
Temporary Accommodation
MCH INS understands installment seller licensees order installment sale contract forms in bulk, practice necessitate additional time to implement revisions to existing forms.
Transition affects ability of licensees comply strictly with consumer notice requirement.
Thus, until Jan. 1, 2025, consider compliant with consumer notice requirement, if affix on installment sale contract sticker required disclosure, initialed and dated by buyer.
Also compliant if installment seller licensee legibly writes in the installment sale contract the required disclosure that is initialed and dated by the installment buyer.
Compliant if seller provides disclosure on separate page, initialed and dated by buyer.
