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

SF 2217 requires lenders in Iowa to clearly inform borrowers in writing that purchasing an auto club membership or vehicle warranty is optional and won’t affect loan approval. If offered, borrowers must be allowed to pay for these items either with non-loan funds or include the cost in their loan. Borrowers also gain the right to cancel within 30 days for a full refund if they haven’t used any services. This bill directly affects lenders who sell these products alongside loans and protects borrowers from being pressured into unnecessary purchases.