SB 1202
Allows lenders to charge for home and auto security plans
LR Number:
Last Action:
3/31/2008 - SCS Voted Do Pass S Financial & Governmental Organizations and Elections Committee (5334S.02C)
Journal Page:
Calendar Position:
Effective Date:
August 28, 2008

Current Bill Summary

SCS/SB 1202 - This act allows lending institutions to sell, charge a fee for, or finance as part of a loan, home and automobile security plans. These plans provide certain services relating to protection against home or auto emergencies and accidents.

Lenders may not require the purchase of the plan as a condition for approval of the loan. Purchasers of the plans shall be entitled to cancel the transaction and receive a refund within 30 days of the purchase. Purchasers of the plans must provide written acknowledgment of their intent to purchase the plans.

This act is similar to SB 466 (2008).