HB 3178
Requires a seller in a motor vehicle transaction that involves a retail installment contract or lease agreement to make a good faith effort to sell the retail installment contract or lease agreement to a lender on the exact terms that the seller and buyer negotiated.
Jurisdiction
Oregon
Session
2025 Regular Session
At the request of
(at the request of Oregon Consumer Justice)
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Sign in to take actionPublic sentiment
Support
94%
Oppose
6%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill aims to protect consumers in motor vehicle transactions involving retail installment contracts or lease agreements. It requires sellers to make a good faith effort to sell these agreements to a lender on the same terms agreed upon by the buyer and seller. If the lender doesn’t approve within 10 days of the buyer taking possession, the seller can’t sell or pay off the vehicle before lender approval. The bill also includes disclosure requirements and penalties for non-compliance.
Key provisions
- Sellers must attempt to sell retail installment contracts or lease agreements to lenders.
- Lenders must respond within 10 calendar days of the buyer taking possession.
- Sellers cannot sell or pay off a trade-in vehicle before lender approval.
- The bill includes specific disclosure requirements for sellers.
- Violations of the bill are considered unlawful trade practices.
Who is affected
- Motor vehicle sellers
- Consumers purchasing vehicles with retail installment contracts or leases
- Lenders financing vehicle purchases
Notable changes
- Prohibits selling or paying off a loan balance for a trade-in vehicle before lender approval.
- Establishes a timeframe (10 days) for lender response.
Sponsors
Official sponsors from legislative records.
Primary sponsors
Cosponsors
Arguments in favor
Reasons to support this legislation.
Supporters of the measure emphasize the need for greater transparency and protection for Oregon consumers in the auto financing process. Testimony highlights concerns about dealerships' ability to change loan terms after sale, leaving consumers vulnerable to financial hardship and stress. Advocates argue that current laws allow for predatory tactics, particularly against those with limited financial resources or language barriers. Supporters of HB 3178 A believe the bill will eliminate financing uncertainty, ensure transparency during purchasing, and prevent exploitation, ultimately protecting Oregon families' economic stability and access to essential services such as employment, education, and medical care.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Several organizations, including the Oregon Vehicle Dealer Association, RV Dealers Association, and Auto Trades Association, express opposition to House Bill 3178. They cite concerns that the bill's added sections will introduce unnecessary complexity and create potential litigation over the 'conspicuous' disclosure requirements, which they argue may be overly burdensome for dealerships. These groups also suggest that the bill's provisions could lead to increased costs and regulatory hurdles, potentially harming small businesses and the overall automotive industry.
Source: Testimony Summaries