AI Generated Summary
This bill proposes an amendment to Minnesota Statutes 2024, section 53C.08, subdivision 1, by removing obsolete language related to retail installment contracts. Key provisions of the amendment include:
Clarification of Contract Terms – Retail installment contracts must be in writing, signed by both the buyer and seller, and a copy must be provided to the buyer at the time of signing. Additionally, a copy signed by both parties must be given to the buyer within seven days of vehicle delivery.
Removal of Outdated Provisions – The bill removes a provision requiring sellers to provide copies of contracts executed before August 1, 1996, to buyers within 120 days after that date, as this requirement is no longer relevant.
Prohibition on Confession of Judgment Clauses – Contracts cannot include provisions allowing the seller or holder to obtain a confession of judgment or power of attorney for such action.
Delinquency Charges – Holders of precomputed installment contracts may charge a delinquency fee of up to 5% of an overdue installment (or $5, whichever is greater), provided the contract stipulates this.
Attorney’s Fees – Retail installment contracts may include provisions for attorney’s fees, up to 15% of the amount owed, when referred to an attorney (who is not a salaried employee of the holder) for collection, along with court costs.
Notification of Assignment – Payments made by the buyer to the last known holder of the contract remain valid unless the buyer has received notice of an actual or intended assignment of the contract.
Payment Statements and Receipts – Upon written request, the contract holder must provide the buyer with a written statement of payment history and outstanding balance. Additionally, a written receipt must be issued for cash payments.
The primary purpose of the bill is to eliminate outdated language while maintaining clear guidelines for retail installment contracts.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 11, 2025 | House | Floor | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
| March 11, 2025 | House | Floor | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
Citations
[
{
"analysis": {
"added": [],
"removed": [
"Obsolete language from terms and limitations of retail installment contracts."
],
"summary": "The bill amends the terms and limitations of retail installment contracts under section 53C.08.",
"modified": [
"Clarified the requirement for providing copies of contracts to retail buyers."
]
},
"citation": "53C.08",
"subdivision": "subdivision 1"
}
]