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IA SSB3066
SB
AI Summary
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Licensed loan officers may offer borrowers the option to purchase auto club memberships or vehicle warranties after a loan has been approved.
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Lenders must provide written disclosure, initialed by the borrower, stating that purchasing a membership or warranty is optional and will not affect loan approval.
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Borrowers who choose to purchase must be given the option to either pay with separate funds or include the cost in the financed loan amount.
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Borrowers may cancel the membership or warranty and receive a full refund within 30 calendar days of purchase, provided no services have been used.
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The bill amends Iowa Code Section 536.13 by adding a new subsection 5A governing these consumer protection requirements.
Legislative Description
A bill for an act relating to certain sales of auto club memberships and vehicle warranties.(See SF 2217.)
Last Action
Committee report approving bill, renumbered as SF 2217.
2/4/2026