The bill amends the Retail Installment Sales Act of 1966 to enhance compliance with the Truth in Lending Act and improve clarity in retail installment contracts. Key provisions include a requirement for contracts to be in writing, signed, and to contain specific disclosures such as the cash sale price, down payment, and itemized fees. Additionally, contracts must be labeled as "retail installment contracts" and include a notice informing buyers of their rights, including the right to receive a copy of the signed contract and the right to a partial refund of the finance charge if the balance is prepaid. The bill also introduces new definitions and requirements for guaranteed asset protection waivers, ensuring transparency regarding associated costs.

Moreover, the bill addresses the extension and refinancing of scheduled payments in retail installment contracts. It allows holders to extend or defer payment due dates with the buyer's written agreement, imposing a minimum charge of $1.00 if the calculated charge is lower. Any extension or deferral must be confirmed in writing, and holders may charge for additional insurance costs during the extension period. The bill also outlines the refinancing process, specifying that the refinance charge must reflect the amount refinanced, including insurance costs and official fees, while capping the maximum charge at the interest rate allowed under the credit reform act. The enactment of this bill is contingent upon the passage of Senate Bill No. 739.

Statutes affected:
Senate Introduced Bill: 445.851