New Hampshire Banking Department issues FAQ regarding HB 1243 and RSA 361-A relating to retail installment sales of motor vehicles

HB 1243, which repealed and reenacted RSA 361-A, was signed into law on August 2, 2024. The new provisions of RSA 361-A went into effect upon signing. Below, please find a list of questions the Banking Department has frequently been asked about the specific provisions found in the new RSA 361-A. Please note that the following frequently asked questions and answers are provided as informal guidance only. The Banking Department cannot act as your attorney and cannot provide legal guidance. If you have specific questions, you should consult with a private attorney. 

Question: Can the notice required by RSA 361-A:15, IX be included as an addendum to the retail installment contract until such time as company forms are fully updated? 

Answer: An addendum shall be permitted provided that the consumer indicates that it has been read, either electronically or in print. 

Question: Are securitization trusts considered “holders” for purposes of RSA 361-A:20, I? 

Answer: No, securitization trusts shall not be considered “holders” for purposes of RSA 361-A:20. 

Question: Does the assignment from the dealer to a financial company purchasing the retail installment contract prior to first payment trigger a notice pursuant to RSA 361-A:20, I?

Answer: Yes. Generally speaking, the provisions of RSA 361-A should be read in favor of providing notice to consumers after any transfer. 

Question: What do the terms “principal”, “total interest charged for the period of such loan”, and “nature of the security” mean for purposes of RSA 361-A:20, VII?

Answer: “Principal” means the current, unpaid balance of loan amount agreed to on the retail installment contract and excludes any late fees, interest, or other charges that may be assessed or owed after the retail installment contract has been executed.  “Total interest charged for the period of such loan” means the interest for the period covered by the current payment, not the interest for the life of the loan. “Nature of the security” means the year, make, and model of the vehicle that is the subject of the retail installment contract. 

Question: (a) What does the term “ancillary product” mean for purposes of RSA 361-A:20, VIII; and (b) When does the 21 calendar day countdown begin for purposes of RSA 361-A:20, VIII (a); and (c)Who is responsible for the refund contemplated in RSA 361-A:20, VIII(c)?

Answer: (a) “Ancillary product” means a secondary service that is purchased in addition to and in support of the vehicle subject to the retail installment contract. The term may include but is not limited to extended warranties, service contracts, and credit protection contracts. Guaranteed asset protection contracts and waivers are governed by other sections of RSA 361-A as well as RSA 361-E. 
(b)  The 21 calendar days begins on the date any ancillary product is canceled, pursuant to RSA 361-A: 20, VIII(b). In the event an ancillary product provides coverage beyond the length of the retail installment contract, the requirements for cancellation and refunds shall be governed by the terms of the ancillary contract itself and negotiated between the buyer and the provider of services under the ancillary product contract. 
(c)  Pursuant to RSA 361-A:20, VIII(c), in the event an ancillary product is cancelled or a triggering event occurs, the holder of the contract is required to provide notice to the provider of services under the ancillary product contract. The holder shall provide a copy of the notice to the buyer of the vehicle or shall mail the notice to the buyer’s last known address. The provider of services is then responsible for issuing any applicable refunds pursuant to the terms of the agreement.