Relating to certain sales of auto club memberships and vehicle warranties

This bill relates to certain sales of auto club memberships and vehicle warranties. Under the bill, a licensed loan officer (licensee) may, after approving a loan to a borrower, offer the borrower the option to purchase an auto club membership (membership) or vehicle warranty (warranty). _____ 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.