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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
Amending Title 12 (Commerce and Trade) of the Pennsylvania
Consolidated Statutes, in motor vehicle sales finance,
further providing for notice; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 6223 of Title 12 of the Pennsylvania
Consolidated Statutes is amended by adding a subsection to read:
§ 6223. Notice.
* * *
(c) Additional requirements.--
(1) Prior to presenting an executable installment sale
contract to a prospective buyer, an installment seller shall
provide a prospective buyer, separate and apart from any
other information, with a disclosure entitled "FINANCIAL
DISCLOSURE." The disclosure shall be simple and easy to
understand and include the following information:
(i) For any finance charge offered by an installment
seller to a prospective buyer, the identity of the
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creditor, the total amount financed to include an
itemization of all charges, taxes, fees and deductions,
the interest rate, the total amount due from the finance
charge over the duration of the loan, the total amount
due from the amount financed and the finance charge over
the duration of the loan, the monthly payment and the
duration of the loan and number of payments. If different
interest rates are available to a prospective buyer from
an installment seller for a loan duration included in the
disclosure, the installment seller shall indicate the
range of interest rates available for the loan duration.
If a finance charge is not included in financing offered,
the installment seller shall provide the disclosure with
information contained in this paragraph not applicable to
a finance charge for any financing offered.
(ii) Information to be developed by the department
entitled "IMPORTANT INFORMATION TO CONSIDER" that
describes the impact that the duration of a loan can have
on the interest rate, monthly payment and total costs,
that seeking additional finance offers can reduce monthly
payments or total costs and the waiting period required
under paragraph (6).
(iii) A disclaimer indicating information provided
in subparagraph (i) may be subject to a prospective
buyer's credit information.
(iv) A disclaimer indicating the maximum amount of
interest an installment seller may charge annually under
the provisions of this chapter for new and used motor
vehicles.
(v) A disclaimer indicating the information in
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subparagraph (i) does not include late charges or other
charges that may be necessary or incidental to an
installment sale.
(vi) A disclaimer advising prepaying financing can
reduce the finance charge and an indication from the
installment seller of whether prepaying financing
included in the disclosure is subject to penalty.
(vii) A disclaimer advising the information in
subparagraph (i) is not binding and an indication from
the installment seller of whether the information is
subject to negotiation.
(viii) A disclaimer advising an installment seller
shall provide a prospective buyer with a new disclosure
when a different finance charge or different financing
without a finance charge is offered to a prospective
buyer after the initial disclosure is provided.
(ix) A disclaimer indicating violations of this
subsection are prohibited and describing how violations
can be reported.
(x) Any other information deemed necessary by the
department.
(2) The model form for the disclosure under paragraph
(1) shall be made available in downloadable format by the
department on the publicly accessible Internet website of the
department.
(3) The disclosure under paragraph (1) may be provided
to a prospective buyer electronically or by paper copy. The
model form of the electronic version shall have both a
standard letter size and a smaller size that is designed to
be easy to read on an average-sized smart phone screen
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without having to enlarge the image.
(4) The installment seller shall explain the general
purpose of the disclosure upon initially providing it to a
prospective buyer under paragraph (1). Each disclosure
provided to a prospective buyer shall be dated and signed by
the installment seller and prospective buyer.
(5) An installment seller shall keep a copy of each
disclosure provided to a prospective buyer after the
provisions of paragraph (4) are satisfied.
(6) An executable installment sale contract may not be
presented to a prospective buyer within one business day
after the provisions of paragraph (5) are satisfied.
(7) The provisions of this subsection shall not apply to
the execution of an installment sale contract between an
installment seller and a business. As used in this paragraph,
the term "business" shall have the same meaning given to it
under section 4302 (relating to definitions).
(8) An installment seller found to be in violation of
this subsection commits a summary offense and, upon
conviction, shall be sentenced to pay a fine of not more than
$500 per violation.
(9) Notwithstanding paragraph (8), a violation of this
subsection shall also constitute a violation of the act of
December 17, 1968 (P.L.1224, No.387), known as the Unfair
Trade Practices and Consumer Protection Law.
(10) The department may promulgate regulations necessary
to effectuate the provisions of this subsection.
Section 2. This act shall take effect in 18 months.
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