Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H379 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2938 FILED ON: 1/16/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 379
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Carlos González
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 :DATE ADDED:Carlos González10th Hampden1/16/2025Attorney General Andrea Joy
16	16	Campbell
17	17	One Ashburton Place, Boston, MA
18	18	02108
19	19	1/16/2025 1 of 7
20	20	HOUSE DOCKET, NO. 2938 FILED ON: 1/16/2025
21	21	HOUSE . . . . . . . . . . . . . . . No. 379
22	22	By Representative González of Springfield, a petition (accompanied by bill, House, No. 379) of
23	23	Carlos González and Attorney General Andrea Joy Campbell relative to modernizing protections
24	24	for consumers in automobile transactions. Consumer Protection and Professional Licensure.
25	25	[SIMILAR MATTER FILED IN PREVIOUS SESSION
26	26	SEE HOUSE, NO. 311 OF 2023-2024.]
27	27	The Commonwealth of Massachusetts
28	28	_______________
29	29	In the One Hundred and Ninety-Fourth General Court
30	30	(2025-2026)
31	31	_______________
32	32	An Act modernizing protections for consumers in automobile transactions.
33	33	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
34	34	of the same, as follows:
35	35	1 SECTION 1. Section 7N of chapter 90 of the General Laws, as appearing in the 2022
36	36	2Official Edition, is hereby amended by striking out, in line 3, the words “such sale” and inserting
37	37	3in place thereof the following:- delivery.
38	38	4 SECTION 2. Said section 7N of said chapter 90 is hereby further amended by striking
39	39	5out, in lines 9 and 13, the word “sale” and inserting in place thereof, in each instance, the
40	40	6following:- delivery.
41	41	7 SECTION 3 Section 7N¼ of said chapter 90 is hereby amended by striking out clauses
42	42	8(i), (ii), and (iii) of paragraph (2)(B) and inserting in place thereof the following:- (i) For a used
43	43	9motor vehicle which, at the time of sale, has been operated less than 50,000 miles, 90 days or 2 of 7
44	44	103,750 miles, whichever occurs first. Said 90 days or 3,750 mile warranty is in addition to any
45	45	11right the consumer may have under section 7N½.
46	46	12 (ii) For a used motor vehicle which, at the time of sale, has been operated 50,000 miles or
47	47	13more, but less than 100,000 miles, 60 days or 2,500 miles, whichever first occur.
48	48	14 (iii) For a used motor vehicle which, at the time of sale, has been operated 100,000 miles
49	49	15or more, but less than 200,000 miles, 30 days or 1,250 miles, whichever first occur.
50	50	16 SECTION 4. Paragraph (1) of subsection (c) of section 58 of chapter 140 of the General
51	51	17Laws, as so appearing, is hereby amended by striking out “$25,000” and inserting in place
52	52	18thereof the following:- $50,000.
53	53	19 SECTION 5. Said subsection (c) of said section 58 of said chapter 140 is hereby further
54	54	20amended by striking out paragraph (2) and inserting in place thereof the following:- (2) Any
55	55	21person, or the attorney general, may make a claim for recovery against the bond for an act or
56	56	22omission on which the bond is conditioned if the act or omission occurred during the term of the
57	57	23bond. Every bond shall also provide that no claim may be made against the bond unless the
58	58	24claimant provides the bondholder notice of the claim within 1 year after the event giving rise to
59	59	25the claim.
60	60	26 SECTION 6. Said subsection (c) of said section 58 of said chapter 140 is hereby further
61	61	27amended by adding the following paragraph:- (9) The attorney general may recover from the
62	62	28bond or its equivalent on behalf of a person or a class of persons who suffer loss on account of
63	63	29clauses (i) – (vi) of paragraph (1). 3 of 7
64	64	30 SECTION 7. Section 1 of chapter 255B of the General Laws is hereby amended by
65	65	31striking out the definition of “Holder” and inserting in place thereof the following 3 definitions:-
66	66	32 “Holder”, the retail seller of the motor vehicle under or subject to a retail installment
67	67	33contract, lease agreement or, if the contract is purchased by a financing agency or other assignee,
68	68	34the sales finance company or other assignee.
69	69	35 “Lease agreement” or “lease”, a contract, signed by the lessee in this state, that includes
70	70	36payment for the use of a motor vehicle for a period of time exceeding 4 months.
71	71	37 “Lessee”, a person, or any legal successor in interest to such person, who executes a lease
72	72	38agreement or lease on a motor vehicle for use primarily for personal, family or household
73	73	39purposes.
74	74	40 SECTION 8. Said section 1 of said chapter 255B is hereby further amended by striking
75	75	41out the definition of “retail installment contract” and inserting in place thereof the following
76	76	42definition:-
77	77	43 “Retail installment contract” or “contract”, an agreement, signed by the buyer in this
78	78	44state, pursuant to which the title to, the property in or a lien upon a motor vehicle, which is the
79	79	45subject matter of a retail installment sale, is retained or taken by a retail seller from a retail buyer
80	80	46as security, in whole or in part, for the buyer's obligation. The term includes a chattel mortgage, a
81	81	47conditional sales contract and a contract for the bailment of a motor vehicle by which the bailee
82	82	48contracts to pay as compensation for its use a sum substantially equivalent to or in excess of its
83	83	49value and by which it is agreed that the bailee is bound to become, or has the option of
84	84	50becoming, the owner of the motor vehicle upon full compliance with the terms of the contract. 4 of 7
85	85	51 SECTION 9. Said section 1 of said chapter 255B is hereby further amended by striking
86	86	52out the definition of “Retail seller” and inserting in place thereof the following definition:-
87	87	53 “Retail seller” or “seller”, a person who sells or leases a motor vehicle to a retail buyer or
88	88	54lessee under or subject to a retail installment contract or lease agreement.
89	89	55 SECTION 10. Said chapter 255B is hereby further amended by striking out section 20A,
90	90	56and inserting in place thereof the following section:-
91	91	57 Section 20A. (a) An agreement of the parties in a retail installment contract or lease
92	92	58agreement defining default is enforceable only to the extent that the default is material and
93	93	59consists of the buyer’s or lessee’s failure to make 1 or more installments as required by the
94	94	60agreement; or the occurrence of an event which substantially impairs the value of the collateral.
95	95	61 (b) After a default by a buyer or lessee under a consumer credit transaction or lease
96	96	62agreement, the secured creditor or lessor may not bring an action against the buyer or lessee or
97	97	63proceed against the collateral until he gives the buyer or lessee the notice described in this
98	98	64section. The notice so required shall be deemed to be delivered when delivered to the debtor or
99	99	65when mailed to the debtor at the debtor’s address last known to the creditor. If a buyer or lessee
100	100	66cures a default after receiving notice and again defaults, the creditor or lessor shall give another
101	101	67notice before bringing an action or proceeding against the collateral with respect to the
102	102	68subsequent default, but no notice is required in connection with a subsequent default if, within
103	103	69the period commencing on the date of the consumer credit transaction or lease agreement subject
104	104	70to this section and the date of the subsequent default, the debtor has cured a default after notice 3
105	105	71or more times. 5 of 7
106	106	72 (c) The notice shall be in writing and shall be given to the buyer or lessee 10 days or
107	107	73more after the default. The notice shall conspicuously state the rights of the buyer or lessee upon
108	108	74default in substantially the following form:—
109	109	75 The heading shall read:—“Rights of Defaulting Buyer or Lessee under the Massachusetts
110	110	76Motor Vehicle Installment Sales Act.” The body of the notice shall read:—“You may cure your
111	111	77default in (describe transaction in a manner enabling buyer or lessee to identify it) by paying to
112	112	78(name and address of creditor or lessor) (amount due) before (date which is at 21 days after
113	113	79notice is mailed). If you pay this amount within the time allowed, you are no longer in default
114	114	80and may continue on with the transaction as though no default had occurred.
115	115	81 If you do not cure your default by the date stated above, the said creditor or lessor may
116	116	82sue you to obtain a judgment for the amount of the debt or, if applicable, may take possession of
117	117	83the collateral.
118	118	84 If the creditor or lessor takes possession of the collateral, if any, you may get it back by
119	119	85paying the full amount of your debt plus any reasonable expenses incurred by the said creditor or
120	120	86lessor if you make the required payment within 20 days after he takes possession.''
121	121	87 (d) During the 21-day period after delivery of the notice required by this section the
122	122	88creditor or lessor may not because of that default accelerate the unpaid balance of the obligation,
123	123	89bring action against the buyer or lessee, or proceed against the collateral.
124	124	90 (e) Unless the secured creditor or lessor has first notified the buyer or lessee that he has
125	125	91elected to accelerate the unpaid balance of the obligation because of default, brought action
126	126	92against the buyer or lessee, or proceeded against the collateral, the buyer or lessee may cure a
127	127	93default consisting of a failure to pay money by tendering the amount of all unpaid sums due at 6 of 7
128	128	94the time of tender, without acceleration, plus any unpaid delinquency or deferral charges. Such a
129	129	95cure shall restore the buyer or lessee to his rights under the agreement as though the defaults had
130	130	96not occurred subject to the provisions of subsection (b).
131	131	97 SECTION 11. Section 20B of said chapter 255B is hereby amended by striking out
132	132	98subsections (a) to (c), inclusive, and inserting in place thereof the following 3 subsections:-
133	133	99 (a) Subject to the provisions of this section and section 20A a secured creditor or lessor
134	134	100under a consumer credit transaction or lease agreement may take possession of collateral. In
135	135	101taking possession the secured creditor or lessor under a consumer credit transaction or lease
136	136	102agreement may proceed without a prior hearing only if the default is material and consists of the
137	137	103debtor’s failure to make 1 or more payments as required by the agreement or the occurrence of
138	138	104an event which substantially impairs the value of the collateral and only if possession can be
139	139	105obtained without use of force, without breach of peace and unless the debtor consents to an entry,
140	140	106at the time of such entry, without entry on property owned by or rented to the debtor.
141	141	107 (b) Except as provided in subsection (a) a creditor or lessor under a consumer credit
142	142	108transaction or lease agreement may proceed against collateral only after a prior hearing. In any
143	143	109proceeding where possession of the collateral is part of the relief sought by a holder no court
144	144	110shall allow a secured creditor or lessor to take possession of collateral until the right of the
145	145	111creditor or lessor to take possession has been determined at a hearing at which the buyer or
146	146	112lessee has an opportunity to be heard having been notified in writing of said hearing at least 7
147	147	113days in advance thereof.
148	148	114 (c) The buyer or lessee under a consumer credit transaction or lease agreement may
149	149	115redeem the collateral from the holder at any time within 20 days of the creditor’s or lessor’s 7 of 7
150	150	116taking possession of the collateral, or thereafter until the creditor or lessor has either disposed of
151	151	117the collateral, entered into a contract for its disposition, or gained the right to retain the collateral
152	152	118in satisfaction of the buyer’s or lessee’s obligation.