Ohio Senate Bill SB157

Ohio 2023-2024 Regular Session

• Introduced: 9/19/23
• Report Pass: 6/26/24
• Engrossed: 6/26/24
• Report Pass: 12/11/24
• Enrolled: 12/11/24

Caption

Regards debt suspension products; vehicle protection agreements

Impact

If enacted, SB 157 will create a more structured regulatory framework for vehicle protection products, requiring providers of these products to maintain financial security through insurance policies or reserve accounts. The bill stipulates that motor vehicle ancillary product protection contracts be insured under specific regulations and sets a minimum net worth requirement for contract providers. This ultimately ensures greater protection for consumers purchasing these products by enforcing standards that safeguard their interests and enhance accountability among providers.

Summary

Senate Bill 157 aims to amend existing laws related to debt suspension products and introduce regulations surrounding vehicle protection agreements in Ohio. The bill specifically modifies sections 1317.05 and 3905.426 of the Revised Code and enacts a new section 1310.251. The legislation clarifies the definition of 'excess wear and use waivers', stating that such waivers are not considered insurance products. Furthermore, the bill mandates that the terms of related motor vehicle leases cannot be contingent on the consumer's payment for these waivers. This provision is a significant shift in the way such agreements are treated under Ohio law.

Contention

A notable point of contention surrounding SB 157 is its implications for consumer protections within the realm of vehicle leasing and sales. While proponents argue that the bill will streamline regulations, enhance clarity, and ultimately protect consumers by ensuring that they have access to clear information regarding the products they purchase, critics may raise concerns about the adequacy of protections, particularly in the event of provider non-performance. The regulatory measures introduced by the bill necessitate careful consideration of how they balance corporate interests with consumer rights in the automotive market.