Iowa HSB523 allows licensed loan officers to offer borrowers the option to purchase auto club memberships or vehicle warranties after loan approval.
Iowa HSB523 amends the state code to allow licensed loan officers to offer borrowers the option to purchase auto club memberships or vehicle warranties after loan approval. The purchase must be optional and will not affect the loan receipt. Borrowers can pay for the membership or warranty with non-loan funds or include it in the loan amount. They can also cancel the membership or warranty within 30 days for a full refund if unused. The membership or warranty cost is excluded from the loan's maximum interest rate calculation.
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- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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