The bill amends Section 536.13 of the Code 2026 to introduce new regulations regarding the sale of auto club memberships and vehicle warranties by licensed loan officers (licensees) after a loan has been approved for a borrower. Specifically, it allows licensees to offer borrowers the option to purchase these memberships or warranties while ensuring that the borrower is informed, through a written document initialed by them, that such purchases are optional and will not impact their loan approval.

Additionally, the bill stipulates that if a borrower opts to purchase a membership or warranty, they can either pay for it with non-loan funds or include the cost in the loan amount. Furthermore, it grants borrowers the right to cancel their purchase and receive a full refund within thirty days, provided they have not utilized any services associated with the membership or warranty. This legislation aims to enhance consumer protection and transparency in the sale of these products alongside loan agreements.

Statutes affected:
Introduced: 536.13