Motor vehicle conditional sale contracts: guaranteed asset protection waivers.

Existing law governs motor vehicle conditional sale contracts, as defined, and requires sellers of motor vehicles to make certain disclosures to buyers. Existing law governs the offer, sale, provision, or administration, in connection with a conditional sale contract, of a guaranteed asset protection waiver, defined to mean an optional contractual obligation under which a seller agrees, for additional consideration, to cancel or waive all or part of amounts due on the buyer's conditional sale contract subject to existing law in the event of a total loss or unrecovered theft of the motor vehicle specified in the conditional sale contract. Existing law requires the terms and conditions of the guaranteed asset protection waiver, as specified, to appear on a document separate from the conditional sale contract. If the conditional sale contract is assigned, existing law requires the above-described separate document to provide written notice of the assignment of both the conditional sale contract and guaranteed asset protection waiver, as specified, to the buyer in person, by mail, or by a means of notice that the buyer previously agreed to with the seller or holder in connection with the conditional sale contract within 30 days of the assignment. This bill would require, if a conditional sale contract is assigned specific to securitization, as specified, and the seller of the conditional sale contract and guaranteed asset protection waiver remains the point of contact with the buyer, as specified, the entity who received the assignment from the seller to notify the consumer in accordance with specified requirements. The bill would require the seller to assume the legal liability of the holder for violations of these provisions, as described, if the holder does not comply with the specified notice requirements.