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Committee advances bill to allow and regulate vehicle value protection agreements (VVPAs)
Summary
Representative Monahan told lawmakers House Bill 504 would create a regulated framework allowing dealerships and lenders to offer voluntary vehicle value protection agreements (VVPAs) to both financed and cash purchasers.
Representative Monahan presented House Bill 504 as a consumer-protection measure to introduce a regulated framework for vehicle value protection agreements, which sponsors call VVPAs. Monahan said VVPAs differ from traditional GAP insurance by being available to both financed and cash purchasers and by offering a contractual option to cover differences between a vehicle’s value and the remaining loan or trade value.
Sponsor remarks described key provisions: VVPAs would be voluntary, require clear disclosures of terms, benefits, eligibility and refund policies, mandate financial security provisions to guarantee benefits, and grant the attorney general authority to enforce violations. The bill would also require a 30‑day free‑look period allowing purchasers to cancel for a full refund.
Supporters argued the measure levels the playing field with neighboring states that already allow these agreements and gives Georgia consumers another tool to protect against total loss or rapid depreciation. Committee members asked no substantive questions during the brief presentation and the bill was advanced by voice vote.
The committee recorded no roll-call tally in the transcript. The bill will next proceed to the drafting/printing stage and further legislative consideration.
