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Lieu Introduces Used Car Financing Protection Bill

(EGPNews)— Sen. Ted W. Lieu has introduced Senate Bill 956 in response to an investigation that showed widespread abuses by used car dealers who offer ‘buy here, pay here’ installment loans.

The three main goals of the bill are to impose regulations on dealers offering installment loans at their car dealerships by requiring them to obtain a California Finance Lender’s license; cap interest to 17.25 percent for used-car installment loans; and change the way car dealers are able to repossess vehicles to include grace periods, and make it easier for buyers to reinstate a repossessed car.