AZ HB2220

Prohibits any person, whether in Arizona or another state, from making, offering, or arranging a secondary motor vehicle finance transaction with an individual in Arizona.

Declares secondary motor vehicle finance transactions void as to principal and all charges, making them unlawful practices subject to enforcement procedures and penalties under Arizona law.

Removes provisions that previously allowed secondary motor vehicle finance transactions with specific maximum finance rates (17% monthly for loans $500 or less, declining to 10% monthly for loans over $5,000).

Eliminates disclosure requirements and other regulatory provisions that previously applied to secondary motor vehicle finance transactions.

A secondary motor vehicle finance transaction is defined as obtaining a security interest or lien on a motor vehicle outside of a direct sale of that vehicle, or selling a vehicle while retaining use rights.