Bill
S 228
Massachusetts bill expands consumer protections for motor vehicle transactions, including longer/clearer used-vehicle warranties, higher bond limits, and stricter default notice pr
Note on conflicting metadata
- The packet you provided includes two different subject lines: an initial short title about manufactured‑home park rent increases and a full bill text titled “An Act modernizing protections for consumers in automobile transactions.” The legislative text below and the detailed amendments refer to Massachusetts motor‑vehicle consumer protection statutes. This summary focuses on the vehicle/consumer protections content actually shown in the bill text.
Purpose
- Modernize and expand consumer protections for retail motor‑vehicle transactions (sales, retail installment contracts, and leases) in Massachusetts. The bill updates warranty/repair windows for used vehicles, revises statutory definitions for sellers, holders and lessees, increases certain bond requirements, clarifies notice and default procedures, and expands enforcement/recourse for consumers and the Attorney General.
Key provisions and changes
- Terminology: Replaces occurrences of the term “sale” with “delivery” in section 7N of chapter 90 to align obligations with vehicle delivery rather than only sale.
- Used‑vehicle limited warranty tiers (section 7N¼ (2)(B)):
- Vehicles < 50,000 miles at time of sale: 90 days or 3,750 miles (whichever first). This 90‑day/3,750‑mile warranty is in addition to rights under section 7N½.
- Vehicles ≥ 50,000 and < 100,000 miles: 60 days or 2,500 miles.
- Vehicles ≥ 100,000 and < 200,000 miles: 30 days or 1,250 miles.
- Bond amount (chapter 140, section 58): Increases statutory figure from $25,000 to $50,000.
- Claims against dealer bond:
- A claim may be made for acts/omissions that occurred during the bond term only if the claimant notifies the bondholder within 1 year after the event giving rise to the claim.
- Attorney General may recover from the bond on behalf of persons or a class of persons who suffer losses described in specified clauses.
- Definitions (chapter 255B, section 1):
- “Holder” clarified to mean the retail seller or, if assigned, the sales finance company or assignee.
- “Lease agreement” defined as a signed contract in the Commonwealth for motor‑vehicle use of not less than 4 months.
- “Lessee” defined as a person who signs such a lease for primarily personal/family/household use (and successors).
- “Retail instalment contract” clarified to include chattel mortgages, conditional sales contracts and certain bailment arrangements.
- “Retail seller” defined to include a person who sells or leases subject to a retail instalment contract or lease agreement.
- Default and notice procedures (new section 20A):
- Contractual default definitions enforceable only if the default is material and consists of failing to make at least one installment or an event that substantially impairs collateral value.
- A secured creditor/lessor must provide written notice (deemed delivered when handed to or mailed to the debtor’s last known address) before taking action or proceeding against collateral. The notice must be given not less than 10 days after the default and must clearly state the buyer’s/lessee’s rights in a prescribed form.
- If a debtor cures a default after notice and later defaults again, another notice is required (with certain limited exceptions where multiple cures relieve future notice requirements within a stated period).
- Limits the number of times notice must be provided in certain repeat‑default scenarios.
Who is affected
- Consumers who purchase, finance or lease motor vehicles in Massachusetts — especially buyers of used vehicles.
- Retail sellers/dealers, sales finance companies and assignees, lessors.
- Bondholders and entities required to post bonds under chapter 140.
- The Attorney General (expanded authority to recover from bonds on behalf of individuals or classes).
Procedural / timeline highlights (from provided actions)
- Filed/Introduced in Senate: January 2025.
- Passed Senate and delivered to the House/Assembly multiple times; amended on third reading (228A); ordered to third reading (Cal.82).
- Referred to House committee(s) including Housing; hearing(s) scheduled and rescheduled (October 2025 dates appear in docket).
- Current status in provided docket: ORDERED TO THIRD READING (Cal.82) with various referrals, amendments and reconsiderations noted.
Potential impacts
- Strengthens short‑term implied warranty protections for purchasers of used vehicles with specific mileage/duration brackets.
- Increases surety available to consumers by raising bond amounts from $25,000 to $50,000 and allowing the Attorney General to use bonds for class recoveries.
- Creates clearer debtor protections around default notices and limits certain creditor remedies until statutorily required notifications are given.
- Clarifies coverage of retail instalment sales and leases under consumer‑credit law, potentially expanding protections to lease customers and assignees.
If you want, I can:
- Produce a side‑by‑side comparison showing current law vs. the bill for the most affected sections (warranty tiers, bond language, and section 20A).
- Draft a one‑page fact sheet for consumers or dealers summarizing practical effects.
Compiled from official sources — confirm details with the bill’s official record.
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