HB10 Summary

• Requires new and used motor vehicle dealers to disclose to consumers any interest rate add-on received from a financial institution for arranging financing on the vehicle purchase.

• Defines "interest rate add-on" as compensation received by the dealer from a financial institution, which may be a percent of the total finance charge or other form of compensation.

• Applies to any licensed motor vehicle dealer that offers or arranges financing as part of the sale of a new or used motor vehicle.

• Operates as supplemental legislation to existing consumer finance laws under Alabama's Consumer Credit Act (Mini-Code).

• Takes effect on the first day of the third month following passage and approval by the Governor.