The bill amends Section 6-13.1-28 of the General Laws concerning deceptive trade practices related to the financing of motor vehicles. It mandates that any contract for financing a motor vehicle must prominently display the term and rate of interest, with the borrower's initials or signature required next to these terms as an acknowledgment. Additionally, it introduces a new provision that prohibits the use of terms like "down payment" or "money down" in contracts for leasing motor vehicles. Instead, lessees must receive a plain language disclosure indicating that any lump sum payments made at the time of financing will not be refunded if the vehicle is deemed a total loss.

Furthermore, the bill stipulates that any financing agreement that fails to comply with these provisions can be voided by the borrower within thirty days, although the borrower remains responsible for any damage to the vehicle. The act is set to take effect upon passage.

Statutes affected:
175: 6-13.1-28