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Georgia regulates vehicle value protection agreements, mandates consumer cancellation rights, and requires provider financial security
Original title: Commerce and trade; procedures, conditions, and limitations relative to vehicle value protection agreements; provide
Last action · February 10, 2026: House Committee Favorably Reported By SubstituteSponsors: Martin Momtahan and 3 others
Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law
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Public stanceCommunity reactions are separate from the official record and reporting.
What This Bill Proposed
Georgia HB 504 establishes comprehensive regulations for s by requiring providers to maintain financial security, granting consumers a mandatory 30-day with full refund rights, and prohibiting lenders from conditioning vehicle loans on the purchase of these agreements.
Why it matters
Vehicle purchasers gain mandatory cancellation rights, guaranteed refund terms, and direct recourse to insurers if providers fail to pay claims, while agreement providers must maintain at least $15 million in capital, funded reserves, or $100 million in net worth.
Background
- The House Committee on Regulated Industries handles matters related to commercial practices, trade regulations, and industry oversight within the Georgia General Assembly. context
- The Fair Business Practices Act of 1975 serves as Georgia's primary consumer protection statute prohibiting unfair or deceptive acts or practices in consumer transactions. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Directly affected
Consumers
Consumers gain statutory cancellation rights, a 30-day free look period, mandatory disclosures, and direct recourse to insurers if providers fail to pay claims.
Directly affected
Providers of vehicle value protection agreements
Providers must comply with new financial security mandates, maintain specific reserves or net worth, provide mandatory disclosures, and adhere to strict cancellation and refund rules.
Directly affected
Insurers
Insurers issuing policies backing vehicle value protection agreements must meet capital, surplus, and premium ratio standards and reimburse consumers if providers fail to perform.
Key Facts
- Establishes a mandatory free look period of at least 30 days for vehicle value protection agreements, allowing consumers to cancel for a full refund if no benefits have been provided.
- Prohibits finance agreements or vehicle purchase agreements from being conditioned on a consumer entering into a vehicle value protection agreement.
- Requires providers to ensure agreements are backed by a licensed insurer with at least $15 million in capital and surplus, or maintain funded reserves of at least 40 percent of net money received, or maintain a net worth of at least $100 million.
- Permits consumers to file a reimbursement claim directly with the insurer if the provider fails to pay within 60 days after proof of damage, total loss, or unrecovered theft.
Show all 8 facts
- Authorizes the Attorney General to bring civil actions to enjoin violations, obtain restitution, and impose civil penalties of up to $2,500 per violation.
- Classifies any violation of the article as a violation of the Fair Business Practices Act of 1975, restricted to public remedies administered by the Attorney General.
- Requires vehicle value protection agreements to conspicuously disclose provider contact information, terms, charges, benefit eligibility, and cancellation restrictions.
- Allows providers to cancel agreements immediately for nonpayment or breach of duties, while requiring five days written notice for cancellations for other reasons.
Frequently Asked Questions
Can a car dealership force me to buy a vehicle value protection agreement to get a car loan?
No. The bill explicitly states that a finance agreement or vehicle purchase agreement shall not be conditioned on a consumer entering into a .
What rights do I have if I want to cancel a vehicle value protection agreement after purchasing it?
You are entitled to a of at least 30 days. If you cancel within this period and have not received benefits, you receive a full refund of the purchase price.
What happens if the agreement provider fails to pay my claim after a total loss?
If the provider does not pay within 60 days after proof of damage, total loss, or unrecovered theft is provided, the consumer is allowed to file a claim for reimbursement directly with the provider's backing insurer.
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
6 actions- Feb 10, 2026HouseCommitteeHouse Committee Favorably Reported By Substitute
- Apr 4, 2025HouseHouse Withdrawn, Recommitted
- Mar 4, 2025HouseCommitteeHouse Committee Favorably Reported
- Feb 20, 2025HouseHouse Second Readers
- Feb 19, 2025HouseIntroducedHouse First Readers
- Feb 18, 2025HouseIntroducedHouse Hopper
Version history & redline
2 versions on fileComparing LC 39 4621/a → LC 56 0567S/hs
removed addedOfficial text
removed: 25 added: 26 LC removed: 39 4621
added: 56 0567S
The House removed: Bill 504
By: Representatives Momtahan of the 17th , Barton of the 5th , McCollum of the 30 th , and
Williams of added: Committee on Regulated Industries offers the removed: 148th
added: following substitute to HB 504:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling
[…]
Official Code of Georgia Annotated, relating to selling and other trade practices, is amended by adding a new article to read as follows: "ARTICLE removed: 37 10-1-950. added: 38 10-1-970. As used in this article, the term: (1) 'Administrator' means the person delegated by a provider as responsible for the administrative or operational functions
[…]
replacement vehicle. Such term shall include vehicle trade-in agreements, vehicle diminished value agreements, vehicle cash down payment protection agreements, and vehicle depreciation benefit agreements. removed: 10-1-951. added: 10-1-971. (a) A provider shall be authorized to utilize an administrator for fulfillment of the terms of a vehicle value protection agreement. (b) A vehicle
[…]
including: (A) The charges under the vehicle value protection agreement; (B) The benefit eligibility requirements; (C) The conditions imposed by the vehicle value protection removed: agreement; added: agreement, including, but not limited to, any requirement that the consumer return to the dealer where the vehicle was purchased to obtain a benefit, if applicable, such term shall only be enforceable if it was agreed separately on a signed form laying out only such condition; and (D) The procedure a consumer is required to follow to obtain the benefit; and (3) The terms or restrictions governing cancellation of the
[…]
the free look period; (B) The length of the free look period; (C) The consumer's right to a refund for cancellation under Code Section removed: 10-1-953; added: 10-1-973; and (D) The methodology for calculating any refund owed the consumer upon cancellation. (c) The disclosure required by subparagraph (b)(3)(A) of this Code section shall conspicuously state upon the first page of the vehicle value protection agreement: 'IN ACCORDANCE WITH GEORGIA CODE SECTION removed: 10-1-953, added: 10-1-973, YOU MAY CANCEL THIS AGREEMENT AT ANY TIME BEFORE THE END OF THE FREE LOOK PERIOD DESCRIBED IN THIS AGREEMENT.' (d) No vehicle value
[…]
protection agreement. (e) A finance agreement or vehicle purchase agreement shall not be conditioned on a consumer entering into a vehicle value protection agreement. removed: 10-1-952. added: 10-1-972. No vehicle value protection agreement may be entered into with a consumer unless a provider: (1)(A) Ensures each of its vehicle value protection agreements
[…]
those of its parent company, then the provider may comply with the provisions of this paragraph by filing the statements of its parent company. removed: 10-1-953. added: 10-1-973. (a) A vehicle value protection agreement shall provide for a free look period of at least 30 days. (b) If a consumer cancels a
[…]
to $75.00; and (3) Shall be authorized to deduct the amount of a benefit paid under the vehicle value protection agreement from the refund. removed: 10-1-954. added: 10-1-974. (a) If the Attorney General has reason to believe that any provider or administrator has violated or is violating this article and such violation
[…]
Redline computed from the official version text (record lane).View this version →
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
Connected Entities
OrganizationCommissioner of Insurance“State official receiving financial filings and security deposits from insurers a”Map →
OrganizationSecurities Valuation Office“Office of the National Association of Insurance Commissioners”Map →
OrganizationNational Association of Insurance Commissioners“Organization receiving annual financial statements”Map →
PersonAttorney General“State official authorized to bring civil actions and enforce violations”Map →
OrganizationUnited States Securities and Exchange Commission“Federal regulatory agency receiving Form 10-K or Form 20-F disclosures”Map →
Sources
Open source document
www.legis.ga.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 75)
- Controversy25Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
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