SPONSOR: Rep. Baumbach & Sen. Sokola & Rep. Dorsey Walker & Rep. Lambert Reps. Morrison, Osienski, Parker Selby; Sen. Huxtable HOUSE OF REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE BILL NO. 295 AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO DEALER PROCESSING FEES.
SPONSOR: Rep. Baumbach & Sen. Sokola & Rep. Dorsey Walker & Rep. Lambert Reps. Morrison, Osienski, Parker Selby; Sen. Huxtable
SPONSOR: Rep. Baumbach & Sen. Sokola & Rep. Dorsey Walker & Rep. Lambert
Reps. Morrison, Osienski, Parker Selby; Sen. Huxtable
SPONSOR:
Rep. Baumbach & Sen. Sokola & Rep. Dorsey Walker & Rep. Lambert
Reps. Morrison, Osienski, Parker Selby; Sen. Huxtable
HOUSE OF REPRESENTATIVES
152nd GENERAL ASSEMBLY
HOUSE BILL NO. 295
AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO DEALER PROCESSING FEES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: Section 1. Amend 6301, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline and redesignating accordingly as follows: 6301. Definitions [For application of this section, see 79 Del. Laws, c. 161, 5]. As used in this chapter: (4) Dealer processing fee means an amount charged by a dealer for any of the following: a. The preparation of written documentation concerning the buying, selling, or exchange of the vehicle. b. Obtaining the title and license plates for the vehicle. c. Obtaining a release of lien. d. Filing title documents with the Department. e. Retaining documents concerning the buying, selling, or exchange of the vehicle. f. Complying with federal or State privacy laws. g. Other administrative services concerning the buying, selling, or exchange of the vehicle. Section 2. Amend 6305, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: 6305. Bill of sale. Every motor vehicle dealer shall complete, in duplicate, a bill of sale for each sale or exchange of a motor vehicle. The original shall be retained for a period of 5 years. A duplicate copy shall be delivered to the purchaser at the time of sale or exchange. The bill of sale shall be signed by both buyer and seller. A bill of sale shall include the following: (1) The name and address of the person to whom the vehicle was sold or traded; traded. (2) The date of the sale or trade; trade. (3) The name and address of the motor vehicle dealer selling or trading the vehicle; vehicle. (4) The make, model, year, vehicle identification number and body style of the vehicle; vehicle. (5) The sale price of the vehicle; vehicle. (6) The amount of any deposit made by the buyer; buyer. (7) A description of any Delaware titled vehicle used as a trade-in and the amount credited the buyer for the trade-in; trade-in. (8) The amount of the document fee, title fee, registration fee , dealer processing fee, or any other fee for which the buyer is responsible and the dealer has collected; each fee shall be individually listed and identified; and collected. Each fee shall be individually listed and identified. A dealer processing fee may not exceed $475, and the bill of sale must provide a written disclosure, in at least 10-point type or larger, of the amount of the fee and what services are included in the fee. (9) The amount of any balance due at settlement.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend 6301, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline and redesignating accordingly as follows:
6301. Definitions [For application of this section, see 79 Del. Laws, c. 161, 5].
As used in this chapter:
(4) Dealer processing fee means an amount charged by a dealer for any of the following:
a. The preparation of written documentation concerning the buying, selling, or exchange of the vehicle.
b. Obtaining the title and license plates for the vehicle.
c. Obtaining a release of lien.
d. Filing title documents with the Department.
e. Retaining documents concerning the buying, selling, or exchange of the vehicle.
f. Complying with federal or State privacy laws.
g. Other administrative services concerning the buying, selling, or exchange of the vehicle.
Section 2. Amend 6305, Title 21 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
6305. Bill of sale.
Every motor vehicle dealer shall complete, in duplicate, a bill of sale for each sale or exchange of a motor vehicle. The original shall be retained for a period of 5 years. A duplicate copy shall be delivered to the purchaser at the time of sale or exchange. The bill of sale shall be signed by both buyer and seller. A bill of sale shall include the following:
(1) The name and address of the person to whom the vehicle was sold or traded; traded.
(2) The date of the sale or trade; trade.
(3) The name and address of the motor vehicle dealer selling or trading the vehicle; vehicle.
(4) The make, model, year, vehicle identification number and body style of the vehicle; vehicle.
(5) The sale price of the vehicle; vehicle.
(6) The amount of any deposit made by the buyer; buyer.
(7) A description of any Delaware titled vehicle used as a trade-in and the amount credited the buyer for the trade-in; trade-in.
(8) The amount of the document fee, title fee, registration fee , dealer processing fee, or any other fee for which the buyer is responsible and the dealer has collected; each fee shall be individually listed and identified; and collected. Each fee shall be individually listed and identified. A dealer processing fee may not exceed $475, and the bill of sale must provide a written disclosure, in at least 10-point type or larger, of the amount of the fee and what services are included in the fee.
(9) The amount of any balance due at settlement.
SYNOPSIS Currently Delaware has no cap on dealer processing fees which permits motor vehicle dealers to arbitrarily charge whatever amounts they wish leading to great discrepancy of these fees among dealers and a lack of protection for consumers. Currently Pennsylvania has a $449 statutory cap on dealer processing fees and Maryland has a $500 statutory cap. This Act defines dealer processing fee, sets a statutory cap of $475 on the dealer processing fee, and requires the dealer to disclose in the bill of sale, in 10-point type or larger, the amount of the fee and what is covered in the fee. This Act also makes technical corrections to conform existing law to the Delaware Legislative Drafting Manual.
SYNOPSIS
Currently Delaware has no cap on dealer processing fees which permits motor vehicle dealers to arbitrarily charge whatever amounts they wish leading to great discrepancy of these fees among dealers and a lack of protection for consumers. Currently Pennsylvania has a $449 statutory cap on dealer processing fees and Maryland has a $500 statutory cap. This Act defines dealer processing fee, sets a statutory cap of $475 on the dealer processing fee, and requires the dealer to disclose in the bill of sale, in 10-point type or larger, the amount of the fee and what is covered in the fee. This Act also makes technical corrections to conform existing law to the Delaware Legislative Drafting Manual.