HB 2278 Summary

• Prohibits any person from making, offering, or arranging secondary motor vehicle finance transactions with individuals in Arizona, with violating transactions void as to principal and all charges.

• Establishes that secondary motor vehicle finance transactions constitute unlawful practices under section 44-1522 and are subject to enforcement procedures and penalties under chapter 10, article 7.

• Removes previous provisions allowing secondary motor vehicle finance transactions with maximum monthly finance rates ranging from 10-17 percent depending on loan amount.

• Defines secondary motor vehicle finance transactions as contracts obtaining a security interest in a motor vehicle outside of a sale, or sale contracts where the seller retains use of the vehicle after sale.