This bill amends Title 12 of the Pennsylvania Consolidated Statutes regarding motor vehicle sales finance by adding a new subsection to Section 6223, which outlines additional requirements for installment sellers. Before presenting an executable installment sale contract to a prospective buyer, sellers must provide a clear and understandable disclosure titled "FINANCIAL DISCLOSURE." This disclosure must include detailed information about the finance charge, total amount financed, interest rates, monthly payments, and disclaimers regarding the impact of loan duration and potential penalties for prepayment. The bill also mandates that the disclosure be available in both electronic and paper formats, and it must be dated and signed by both the seller and the buyer.

Furthermore, the bill establishes penalties for violations of these requirements, classifying them as summary offenses with fines up to $500 per violation. It also states that such violations will be considered breaches of the Unfair Trade Practices and Consumer Protection Law. The Department is authorized to create necessary regulations to implement these provisions. The act is set to take effect 18 months after its passage.

Statutes/Laws affected:
Printer's No. 496 (Mar 26, 2025): 12-6223
Printer's No. 0496: 12-6223