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Financial Services Law Insights and Observations

Texas Passes Law Repealing Vehicle Protection Product Regulatory Act

State Issues State Legislation Consumer Finance Lending Consumer Lending Licensing Auto Finance

State Issues

On June 15, Texas Governor Greg Abbott signed SB 2065. The law modifies a number of motor vehicle-related regulations and licensing requirements. Specifically, the law:

  • eliminates the Vehicle Protection Product Act;
  • abolishes the Vehicle Protection Product Warrantor Advisory Board;
  • requires the warrantor of a vehicle protection product to pay expenses to the person who purchases the product or system if loss or damage occurs due to failure of the product or system;
  • prohibits a retail seller from requiring a vehicle buyer—“as a condition of a retail installment transaction or the cash sale of a commercial vehicle”—to buy a vehicle protection product that is not installed on the vehicle at the time of the transaction, classifying this violation as a “false, misleading, or deceptive act or practice” actionable under the Deceptive Trade Practices-Consumer Protection Act; and
  • eliminates the licensing requirements for boot operators and boot companies, but requires a booting company to remove a boot within an hour of being contacted by the owner or forfeit all removal fees.

The law takes effect September 1.