HSB 523: Relating to certain sales of auto club memberships and vehicle warranties

What it does

This bill relates to certain sales of auto club memberships and vehicle warranties. _____ vehicle warranty (warranty). If the licensee offers the option to purchase a membership or warranty, the licensee shall: inform the borrower, in a written document initialed by the borrower, that the purchase of a membership or warranty is optional and will not affect the receipt of the loan by the borrower; if the borrower chooses to purchase a membership or warranty, permit the borrower either to pay for the cost with funds that are not the proceeds of the loan, or to include the cost in the total amount financed by the loan the borrower obtains from the licensee; and permit the borrower to cancel the membership or warranty and receive a full refund of the purchase price at any time within days following the date of purchase if the borrower has not used the membership or warranty.

House subcommittee · named January 13, 2026

• Rep. Shannon Lundgren (R) · shannon.lundgren@legis.iowa.gov
• Rep. Shannon Latham (R) · shannon.latham@legis.iowa.gov
• Rep. Elizabeth Wilson (D) · elizabeth.wilson@legis.iowa.gov

Lobbying · 2 for, 1 against

For: One Main Holdings, Inc.; Town Financial

Against: Iowa Division of Banking

In plain words

1. January 13, 2026Filed in the House and sent to the Commerce committee
2. January 13, 2026House subcommittee named: Lundgren, Latham and Wilson
3. January 21, 2026Subcommittee recommended passing it