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Read. Follow. Verify.North Carolina regulates home and vehicle service agreements and allocates $50,000 for enforcement
Last action · February 26, 2025: Ref To Com On Rules, Calendar, and Operations of the House (House action)Sponsors: Carolyn Logan and 8 others
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What This Bill Would Do
House Bill 203 establishes strict consumer protections, cancellation rights, and repair timelines for home and motor vehicle s, taking effect October 1, 2025. The legislation requires companies to provide accessible contracts, maintain lists of approved vendors, and ensure prompt repairs for essential heating, cooling, and plumbing systems. Additionally, the measure appropriates $50,000 in recurring funds to the Department of Justice for enforcement beginning July 1, 2025.
Consumers purchasing home warranties or vehicle service contracts gain guaranteed cancellation refunds, clear coverage disclosures, and mandatory five-day repair or out-of-network replacement timelines for essential home systems. Meanwhile, companies must comply with updated insurance requirements and operational standards, backed by dedicated state oversight funding.
- Home service agreements and home warranties are service contracts that cover the repair or replacement of home appliances and systems, operating separately from standard homeowners insurance. context
- Motor vehicle service agreements are extended service contracts purchased to cover mechanical failures, tire damage, and minor repairs outside of manufacturer warranties. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Home service agreement purchasers
Purchasers gain guaranteed cancellation refund rights, mandatory accessible document formats, and enforced five-day repair timelines for critical home systems.
Home appliance service agreement companies
Companies must maintain approved vendor lists, provide specific contractual disclosures, offer accessible formats, and maintain 100% contractual liability insurance.
Department of Justice
The department receives $50,000 in recurring funds to enforce the provisions of Article 43 of Chapter 66.
Key Facts
- Home service agreements must include a specific cancellation provision allowing purchasers to cancel at any time and receive a pro rata refund less claims paid and a reasonable administrative fee capped at ten percent.
- Service agreement companies must provide electronic or paper copies of agreements at signing, with versions accessible to people with disabilities.
- Companies must maintain and regularly update a list of approved vendors and ensure repairs for essential heating, air-conditioning, or single-bathroom plumbing are completed or scheduled within five business days, or pay for an out-of-network vendor.
- Motor vehicle service agreements must provide for a right of assignability by the consumer to a subsequent purchaser before coverage expires under matching criteria.
Show all 7 facts
- Service agreement companies must maintain contractual liability insurance or service agreement reimbursement insurance for 100% of claims exposure with an authorized insurer.
- An appropriation of $50,000 in recurring funds is made from the General Fund to the Department of Justice for the 2025-2026 fiscal year to enforce Article 43 of Chapter 66 of the General Statutes.
- Sections 1 and 2 take effect October 1, 2025, and apply to service agreements entered into on or after that date, while Section 3 takes effect July 1, 2025.
Frequently Asked Questions
What cancellation rights do I have under a home or vehicle service agreement?
What happens if a home service agreement company cannot fix my heating or air-conditioning within five days?
Are motor vehicle service agreements transferable if I sell my car?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
3 actions- Feb 26, 2025HouseRef To Com On Rules, Calendar, and Operations of the House
- Feb 26, 2025HousePassed 1st Reading
- Feb 25, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Separation of Home and Vehicle Agreements
The legislation restructures and clarifies statute sections to cleanly differentiate requirements between home and motor vehicle service agreements.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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