Virginia Senate Bill SB368

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Vehicle history report companies; notifications.

Impact

The bill modifies existing laws under §46.2 of the Code of Virginia, specifically relating to vehicle history report companies. By requiring these companies to notify the owner and lienholder of a vehicle’s nonrepairable status, SB368 bolsters consumer rights and promotes better practices within the industry. The aim is to prevent deceptive practices and ensure that individuals with a vested interest in a vehicle are kept informed and can take necessary actions regarding their assets.

Summary

SB368 establishes revised provisions regarding the responsibilities of vehicle history report companies, particularly focusing on the notification of vehicle owners and lienholders about nonrepairable vehicles. These companies are mandated to inform the respective parties promptly when a vehicle is deemed nonrepairable. This legislation seeks to ensure consumer protection by allowing owners or lienholders to dispute designations that may adversely affect them, ensuring that any corrections are made in a timely manner. The bill is part of broader efforts to enhance transparency in the vehicle history report process and safeguard consumer rights.

Contention

During discussions about SB368, some lawmakers expressed concerns about the administrative burden this bill may place on vehicle history report companies, particularly regarding the processes for disputing nonrepairable designations. Others emphasized the necessity of implementing strong consumer protection measures, pointing out the potential risks of consumers unknowingly making financial commitments on vehicles that have significant damage. The balance between protecting consumer rights and preventing undue burdens on businesses is central to the debate surrounding this bill.