Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S171 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 1792 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 171
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Paul R. Feeney
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act modernizing protections for consumers in automobile transactions.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and NorfolkAttorney General Andrea Joy CampbellOne Ashburton Place, Boston, MA 02108 1 of 7
16	16	SENATE DOCKET, NO. 1792 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 171
18	18	By Mr. Feeney, a petition (accompanied by bill, Senate, No. 171) of Paul R. Feeney and
19	19	Attorney General Andrea Joy Campbell for legislation to modernize protections for consumers in
20	20	automobile transactions. Consumer Protection and Professional Licensure.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE SENATE, NO. 2323 OF 2021-2022.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act modernizing protections for consumers in automobile transactions.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Section 7N of chapter 90 of the General Laws, as appearing in the 2018
32	32	2Official Edition, is hereby amended by striking out, in line 3, the words “such sale” and inserting
33	33	3in place thereof the following:- delivery.
34	34	4 SECTION 2. Said section 7N of said chapter 90 is hereby further amended by striking
35	35	5out, in lines 9 and 13, the word “sale” and inserting in place thereof, in each instance, the
36	36	6following:- delivery.
37	37	7 SECTION 3 Section 7N¼ of said chapter 90 is hereby amended by striking out clauses
38	38	8(i), (ii), and (iii) of paragraph (2)(B) and inserting in place thereof the following:- (i) For a used
39	39	9motor vehicle which, at the time of sale, has been operated less than 50,000 miles, 90 days or 2 of 7
40	40	103,750 miles, whichever occurs first. Said 90 days or 3,750 mile warranty is in addition to any
41	41	11right the consumer may have under section 7N½.
42	42	12 (ii) For a used motor vehicle which, at the time of sale, has been operated 50,000 miles or
43	43	13more, but less than 100,000 miles, 60 days or 2,500 miles, whichever first occur.
44	44	14 (iii) For a used motor vehicle which, at the time of sale, has been operated 100,000 miles
45	45	15or more, but less than 200,000 miles, 30 days or 1,250 miles, whichever first occur.
46	46	16 SECTION 4. Paragraph (1) of subsection (c) of section 58 of chapter 140 of the General
47	47	17Laws, as so appearing, is hereby amended by striking out “$25,000” and inserting in place
48	48	18thereof the following:- $50,000.
49	49	19 SECTION 5. Said subsection (c) of said section 58 of said chapter 140 is hereby further
50	50	20amended by striking out paragraph (2) and inserting in place thereof the following:- (2) Any
51	51	21person, or the attorney general, may make a claim for recovery against the bond for an act or
52	52	22omission on which the bond is conditioned if the act or omission occurred during the term of the
53	53	23bond. Every bond shall also provide that no claim may be made against the bond unless the
54	54	24claimant provides the bondholder notice of the claim within 1 year after the event giving rise to
55	55	25the claim.
56	56	26 SECTION 6. Said subsection (c) of said section 58 of said chapter 140 is hereby further
57	57	27amended by adding the following paragraph:- (9) The attorney general may recover from the
58	58	28bond or its equivalent on behalf of a person or a class of persons who suffer loss on account of
59	59	29clauses (i) – (vi) of paragraph (1). 3 of 7
60	60	30 SECTION 7. Section 1 of chapter 255B of the General Laws is hereby amended by
61	61	31striking out the definition of “Holder” and inserting in place thereof the following 3 definitions:-
62	62	32 “Holder”, the retail seller of the motor vehicle under or subject to a retail instalment
63	63	33contract, lease agreement or, if the contract is purchased by a financing agency or other assignee,
64	64	34the sales finance company or other assignee.
65	65	35 “Lease agreement” or “lease”, a contract, signed by the lessee in this state, that includes
66	66	36payment for the use of a motor vehicle for a period of time exceeding 4 months.
67	67	37 “Lessee”, a person, or any legal successor in interest to such person, who executes a lease
68	68	38agreement or lease on a motor vehicle for use primarily for personal, family or household
69	69	39purposes.
70	70	40 SECTION 8. Said section 1 of said chapter 255B is hereby further amended by striking
71	71	41out the definition of “retail instalment contract” and inserting in place thereof the following
72	72	42definition:-
73	73	43 “Retail instalment contract” or “contract”, an agreement, signed by the buyer in this state,
74	74	44pursuant to which the title to, the property in or a lien upon a motor vehicle, which is the subject
75	75	45matter of a retail instalment sale, is retained or taken by a retail seller from a retail buyer as
76	76	46security, in whole or in part, for the buyer's obligation. The term includes a chattel mortgage, a
77	77	47conditional sales contract and a contract for the bailment of a motor vehicle by which the bailee
78	78	48contracts to pay as compensation for its use a sum substantially equivalent to or in excess of its
79	79	49value and by which it is agreed that the bailee is bound to become, or has the option of
80	80	50becoming, the owner of the motor vehicle upon full compliance with the terms of the contract. 4 of 7
81	81	51 SECTION 9. Said section 1 of said chapter 255B is hereby further amended by striking
82	82	52out the definition of “Retail seller” and inserting in place thereof the following definition:-
83	83	53 “Retail seller” or “seller”, a person who sells or leases a motor vehicle to a retail buyer or
84	84	54lessee under or subject to a retail instalment contract or lease agreement.
85	85	55 SECTION 10. Said chapter 255B is hereby further amended by striking out section 20A,
86	86	56and inserting in place thereof the following section:-
87	87	57 Section 20A. (a) An agreement of the parties in a retail installment contract or lease
88	88	58agreement defining default is enforceable only to the extent that the default is material and
89	89	59consists of the buyer’s or lessee’s failure to make 1 or more installments as required by the
90	90	60agreement; or the occurrence of an event which substantially impairs the value of the collateral.
91	91	61 (b) After a default by a buyer or lessee under a consumer credit transaction or lease
92	92	62agreement, the secured creditor or lessor may not bring an action against the buyer or lessee or
93	93	63proceed against the collateral until he gives the buyer or lessee the notice described in this
94	94	64section. The notice so required shall be deemed to be delivered when delivered to the debtor or
95	95	65when mailed to the debtor at the debtor’s address last known to the creditor. If a buyer or lessee
96	96	66cures a default after receiving notice and again defaults, the creditor or lessor shall give another
97	97	67notice before bringing an action or proceeding against the collateral with respect to the
98	98	68subsequent default, but no notice is required in connection with a subsequent default if, within
99	99	69the period commencing on the date of the consumer credit transaction or lease agreement subject
100	100	70to this section and the date of the subsequent default, the debtor has cured a default after notice 3
101	101	71or more times. 5 of 7
102	102	72 (c) The notice shall be in writing and shall be given to the buyer or lessee 10 days or
103	103	73more after the default. The notice shall conspicuously state the rights of the buyer or lessee upon
104	104	74default in substantially the following form:—
105	105	75 The heading shall read:—“Rights of Defaulting Buyer or Lessee under the Massachusetts
106	106	76Motor Vehicle Installment Sales Act.” The body of the notice shall read:—“You may cure your
107	107	77default in (describe transaction in a manner enabling buyer or lessee to identify it) by paying to
108	108	78(name and address of creditor or lessor) (amount due) before (date which is at 21 days after
109	109	79notice is mailed). If you pay this amount within the time allowed, you are no longer in default
110	110	80and may continue on with the transaction as though no default had occurred.
111	111	81 If you do not cure your default by the date stated above, the said creditor or lessor may
112	112	82sue you to obtain a judgment for the amount of the debt or, if applicable, may take possession of
113	113	83the collateral. If the creditor or lessor takes possession of the collateral, if any, you may get it
114	114	84back by paying the full amount of your debt plus any reasonable expenses incurred by the said
115	115	85creditor or lessor if you make the required payment within 20 days after he takes possession.''
116	116	86 (d) During the 21-day period after delivery of the notice required by this section the
117	117	87creditor or lessor may not because of that default accelerate the unpaid balance of the obligation,
118	118	88bring action against the buyer or lessee, or proceed against the collateral.
119	119	89 (e) Unless the secured creditor or lessor has first notified the buyer or lessee that he has
120	120	90elected to accelerate the unpaid balance of the obligation because of default, brought action
121	121	91against the buyer or lessee, or proceeded against the collateral, the buyer or lessee may cure a
122	122	92default consisting of a failure to pay money by tendering the amount of all unpaid sums due at
123	123	93the time of tender, without acceleration, plus any unpaid delinquency or deferral charges. Such a 6 of 7
124	124	94cure shall restore the buyer or lessee to his rights under the agreement as though the defaults had
125	125	95not occurred subject to the provisions of subsection (b).
126	126	96 SECTION 11. Section 20B of said chapter 255B is hereby amended by striking out
127	127	97subsections (a) to (c), inclusive, and inserting in place thereof the following 3 subsections:-
128	128	98 (a) Subject to the provisions of this section and section 20A a secured creditor or lessor
129	129	99under a consumer credit transaction or lease agreement may take possession of collateral. In
130	130	100taking possession the secured creditor or lessor under a consumer credit transaction or lease
131	131	101agreement may proceed without a prior hearing only if the default is material and consists of the
132	132	102debtor’s failure to make 1 or more payments as required by the agreement or the occurrence of
133	133	103an event which substantially impairs the value of the collateral and only if possession can be
134	134	104obtained without use of force, without breach of peace and unless the debtor consents to an entry,
135	135	105at the time of such entry, without entry on property owned by or rented to the debtor.
136	136	106 (b) Except as provided in subsection (a) a creditor or lessor under a consumer credit
137	137	107transaction or lease agreement may proceed against collateral only after a prior hearing. In any
138	138	108proceeding where possession of the collateral is part of the relief sought by a holder no court
139	139	109shall allow a secured creditor or lessor to take possession of collateral until the right of the
140	140	110creditor or lessor to take possession has been determined at a hearing at which the buyer or
141	141	111lessee has an opportunity to be heard having been notified in writing of said hearing at least 7
142	142	112days in advance thereof.
143	143	113 (c) The buyer or lessee under a consumer credit transaction or lease agreement may
144	144	114redeem the collateral from the holder at any time within 20 days of the creditor’s or lessor’s
145	145	115taking possession of the collateral, or thereafter until the creditor or lessor has either disposed of 7 of 7
146	146	116the collateral, entered into a contract for its disposition, or gained the right to retain the collateral
147	147	117in satisfaction of the buyer’s or lessee’s obligation.