AI Generated Summary
This bill, Minnesota Senate File No. 2513, proposes an amendment to Minnesota Statutes 2024, section 53C.08, subdivision 1, which governs retail installment contracts for vehicle purchases. The proposed changes primarily involve removing obsolete language related to contract execution and buyer rights.
Key Provisions:
Contract Requirements:
- Retail installment contracts must be in writing, signed by both the buyer and seller, and include all agreed-upon terms.
- A signed copy must be provided to the buyer at the time of signing.
- A copy signed by both parties must be given to the buyer within seven days after vehicle delivery.
Removal of Outdated Language:
- Any reference to contracts executed before August 1, 1996, and their associated requirements is being removed, marking it as obsolete.
Restrictions on Legal Provisions:
- Confession of judgment provisions and powers of attorney in retail installment contracts are invalid and unenforceable.
Late Payment and Collection Charges:
- Holders of precomputed installment contracts may charge a late fee of up to 5% of the installment amount (or $5, whichever is greater) if the payment is at least 10 days late.
- Contracts may allow for attorney's fees up to 15% of the amount due if referred to an attorney for collection (excluding salaried employees of the contract holder).
- Court costs may also be included in collection efforts.
Assignment Notification Requirement:
- If the retail installment contract is assigned to a new holder, the buyer must be notified in writing.
- Payments made to the last known holder are binding on all future assignees unless the buyer has been informed of the assignment.
Buyer’s Right to Payment Information:
- Upon written request, the holder must provide the buyer with a written statement of payment history and remaining balance.
- Buyers making cash payments must receive a written receipt.
Purpose of the Bill:
This bill aims to modernize the legal language, removing outdated provisions regarding contracts from before August 1, 1996, while ensuring buyers' rights and obligations under retail installment contracts remain clear and enforceable.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2025 | House | Floor | Action | Introduction and first reading | |
| March 12, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 12, 2025 | House | Floor | Action | Referred to | Commerce and Consumer Protection |
| March 12, 2025 | Senate | Floor | Action | Referred to | Commerce and Consumer Protection |
Citations
[
{
"analysis": {
"added": [],
"removed": [
"Obsolete language regarding pre-August 1, 1996 contracts."
],
"summary": "This bill amends provisions related to retail installment contracts under section 53C.08 subdivision 1.",
"modified": [
"Clarifies requirements for delivery of signed contract copies to retail buyers."
]
},
"citation": "53C.08",
"subdivision": "subdivision 1"
}
]