An Act relative to motor vehicle debt waivers

HD 1233 regulates motor vehicle debt waivers, such as GAP waivers (covering unpaid loan balances after total loss) and excess wear waivers (covering lease fees for damage/mileage). It directly affects consumers (borrowers) who purchase or lease vehicles by requiring clear written disclosures about waiver terms, costs, and cancellation rights. Key provisions include mandating a 30-day "free look period" for cancellation without penalty, prohibiting creditors from conditioning loan terms on waiver purchases, and requiring separate billing for waiver costs (not as finance charges). The bill also sets standards for insurance coverage of waiver obligations and refund procedures for canceled waivers.