Senate Co-Sponsorship Memoranda

In the near future, I intend to introduce legislation that would require vehicle dealers offering financing to prospective buyers (excluding businesses) to provide a disclosure with simple and easy to understand information on the financing, separate and apart from any other information, prior to an executable contract being presented.  

 

The Federal Truth in Lending Act (TILA) requires the disclosure of similar information when vehicle financing is offered, prior to a contract being executed. Although TILA allows a separate disclosure statement to be furnished, they are often provided when contracts are presented, and, as a result, are often overlooked. Additionally, the Federal Trade Commission recently announced that it has finalized a rule designed to better protect consumers by prohibiting misrepresentations and requiring dealers to provide disclosures that are clearer and more forthright with respect to pricing. However, the implementation of that rule is currently on hold due to legal challenges, and it similarly does not address the provision of disclosures in relation to contracts.   

 

The disclosure required by my proposal would also contain supporting information on financing, provide notice of other potential costs, and advise consumers that seeking additional finance offers can reduce monthly payments and/or total costs. Additionally, my legislation would require that a new disclosure be provided if a different amount of interest or different financing without interest is offered after the initial disclosure is provided. 

 

My legislation would also require a waiting or “cooling off” period after a disclosure is provided prior to a contract being presented. This would give prospective buyers time to digest the financing presented and shop around for alternative financing and/or vehicle offerings prior to a contract being executed with a dealer.  

 

I hope you will join me in sponsoring this important legislation to both protect and empower consumers when they are considering vehicle dealer financing.