This bill amends Iowa Code section 322.19A to change the terminology from "documentary fee" to "administrative fee" that motor vehicle dealers can charge customers for services related to the sale of a motor vehicle. The bill removes the previous cap of $180 on the fee that dealers could charge, allowing for greater flexibility in pricing. Additionally, it requires that the administrative fee be included in the total price of the vehicle and clearly disclosed in advertisements and purchase agreements. The notice provided to customers regarding this fee has also been updated to reflect the new terminology and requirements.
Furthermore, the bill establishes that any violation of the provisions in Code section 322.19A constitutes an unlawful practice under Code section 714.16, which carries various remedies, including injunctive relief and civil penalties of up to $40,000 per violation. This change aims to enhance transparency in the fees charged by motor vehicle dealers and ensure that customers are adequately informed about the costs associated with their vehicle purchases.