IA SF2217

Licensed loan officers may offer borrowers the option to purchase auto club memberships or vehicle warranties after a loan has been approved.

Lenders must provide written disclosure, initialed by the borrower, stating that purchasing a membership or warranty is optional and will not affect loan approval.

Borrowers who purchase a membership or warranty must be given the choice to pay with separate funds or include the cost in their financed loan amount.

Borrowers may cancel an auto club membership or vehicle warranty within 30 calendar days of purchase and receive a full refund, provided no services have been used.