SB 483 — An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in motor vehicle sales finance, further providing for notice; and imposing penalties.

PRINTER'S NO.   496

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                            SENATE BILL
                            No. 483
                                                    Session of
                                                      2025

     INTRODUCED BY COLLETT AND HUGHES, MARCH 26, 2025

     REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
        MARCH 26, 2025


                                         AN ACT
 1   Amending Title 12 (Commerce and Trade) of the Pennsylvania
 2      Consolidated Statutes, in motor vehicle sales finance,
 3      further providing for notice; and imposing penalties.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.         Section 6223 of Title 12 of the Pennsylvania
 7   Consolidated Statutes is amended by adding a subsection to read:
 8   § 6223.    Notice.
 9      * * *
10      (c)    Additional requirements.--
11             (1)   Prior to presenting an executable installment sale
12      contract to a prospective buyer, an installment seller shall
13      provide a prospective buyer, separate and apart from any
14      other information, with a disclosure entitled "FINANCIAL
15      DISCLOSURE." The disclosure shall be simple and easy to
16      understand and include the following information:
17                   (i)    For any finance charge offered by an installment
18             seller to a prospective buyer, the identity of the
 1        creditor, the total amount financed to include an
 2        itemization of all charges, taxes, fees and deductions,
 3        the interest rate, the total amount due from the finance
 4        charge over the duration of the loan, the total amount
 5        due from the amount financed and the finance charge over
 6        the duration of the loan, the monthly payment and the
 7        duration of the loan and number of payments. If different
 8        interest rates are available to a prospective buyer from
 9        an installment seller for a loan duration included in the
10        disclosure, the installment seller shall indicate the
11        range of interest rates available for the loan duration.
12        If a finance charge is not included in financing offered,
13        the installment seller shall provide the disclosure with
14        information contained in this paragraph not applicable to
15        a finance charge for any financing offered.
16             (ii)    Information to be developed by the department
17        entitled "IMPORTANT INFORMATION TO CONSIDER" that
18        describes the impact that the duration of a loan can have
19        on the interest rate, monthly payment and total costs,
20        that seeking additional finance offers can reduce monthly
21        payments or total costs and the waiting period required
22        under paragraph (6).
23             (iii)    A disclaimer indicating information provided
24        in subparagraph (i) may be subject to a prospective
25        buyer's credit information.
26             (iv)    A disclaimer indicating the maximum amount of
27        interest an installment seller may charge annually under
28        the provisions of this chapter for new and used motor
29        vehicles.
30             (v)    A disclaimer indicating the information in

20250SB0483PN0496                  - 2 -
 1        subparagraph (i) does not include late charges or other
 2        charges that may be necessary or incidental to an
 3        installment sale.
 4              (vi)    A disclaimer advising prepaying financing can
 5        reduce the finance charge and an indication from the
 6        installment seller of whether prepaying financing
 7        included in the disclosure is subject to penalty.
 8              (vii)    A disclaimer advising the information in
 9        subparagraph (i) is not binding and an indication from
10        the installment seller of whether the information is
11        subject to negotiation.
12              (viii)    A disclaimer advising an installment seller
13        shall provide a prospective buyer with a new disclosure
14        when a different finance charge or different financing
15        without a finance charge is offered to a prospective
16        buyer after the initial disclosure is provided.
17              (ix)    A disclaimer indicating violations of this
18        subsection are prohibited and describing how violations
19        can be reported.
20              (x)    Any other information deemed necessary by the
21        department.
22        (2)   The model form for the disclosure under paragraph
23    (1) shall be made available in downloadable format by the
24    department on the publicly accessible Internet website of the
25    department.
26        (3)   The disclosure under paragraph (1) may be provided
27    to a prospective buyer electronically or by paper copy. The
28    model form of the electronic version shall have both a
29    standard letter size and a smaller size that is designed to
30    be easy to read on an average-sized smart phone screen

20250SB0483PN0496                   - 3 -
 1    without having to enlarge the image.
 2        (4)    The installment seller shall explain the general
 3    purpose of the disclosure upon initially providing it to a
 4    prospective buyer under paragraph (1). Each disclosure
 5    provided to a prospective buyer shall be dated and signed by
 6    the installment seller and prospective buyer.
 7        (5)    An installment seller shall keep a copy of each
 8    disclosure provided to a prospective buyer after the
 9    provisions of paragraph (4) are satisfied.
10        (6)    An executable installment sale contract may not be
11    presented to a prospective buyer within one business day
12    after the provisions of paragraph (5) are satisfied.
13        (7)    The provisions of this subsection shall not apply to
14    the execution of an installment sale contract between an
15    installment seller and a business. As used in this paragraph,
16    the term "business" shall have the same meaning given to it
17    under section 4302 (relating to definitions).
18        (8)    An installment seller found to be in violation of
19    this subsection commits a summary offense and, upon
20    conviction, shall be sentenced to pay a fine of not more than
21    $500 per violation.
22        (9)    Notwithstanding paragraph (8), a violation of this
23    subsection shall also constitute a violation of the act of
24    December 17, 1968 (P.L.1224, No.387), known as the Unfair
25    Trade Practices and Consumer Protection Law.
26        (10)     The department may promulgate regulations necessary
27    to effectuate the provisions of this subsection.
28    Section 2.    This act shall take effect in 18 months.




20250SB0483PN0496                  - 4 -