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Senator warns AB296 could facilitate high‑cost installment loans for vehicle registration; Senate passes bill
Summary
Assembly Bill 296, addressing motor vehicle provisions and installing a DMV-related installment loan mechanism, passed the Senate after debate. Senator Titus argued the bill could allow fees that conflict with the federal Truth in Lending Act and produce extremely high APRs, creating legal and consumer-protection risks.
The Nevada Senate passed Assembly Bill 296, described on the floor as revising various provisions related to motor vehicles, after debate in which Senator Titus raised legal and consumer-protection concerns about an installment-loan mechanism in the bill.
Senator Titus said she supports helping residents afford vehicle registration but objected to the bill's approach. On the floor she said a provision allowing "a fee of up to 15% with amount financed, which must be disclosed as part of the APR under the Federal Truth in Lending Act," could be preempted by federal law and produce very high annual percentage rates for short-term loans. "This fee ... could result in an APR as high as a 80% from 1 month loan, which is wildly excessive," Titus said, adding that she urged rejection of AB296.
Titus framed her opposition on legal and policy grounds: conflict with the federal Truth in Lending Act and the risk that the government would be facilitating high-interest lending rather than addressing affordability through other means. The Senate nevertheless recorded a roll of 13 yeses and 8 noes and declared AB296 passed and ordered to the Assembly.
The transcript does not include specific amended text or fiscal estimates on the floor; it records legal concerns raised by a senator with reference to the Truth in Lending Act and potential APR outcomes, and it records final passage to the Assembly.
