A bill for an act relating to certain sales of auto club memberships and vehicle warranties.

This Iowa bill (HSB 523) requires lenders to clearly inform borrowers that auto club memberships and vehicle warranties are optional when offered after loan approval. Borrowers must receive written notice stating these purchases won't affect loan approval, can pay with non-loan funds or include the cost in the loan (without increasing the interest rate), and get full refunds within 30 days if unused. The law directly protects borrowers from being pressured into unnecessary add-on purchases during loan transactions. It aims to increase transparency in these optional sales by mandating clear disclosure and refund options.