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Committee backs bill to authorize vehicle-value protection agreements, set consumer protections
Summary
House Bill 504 would authorize voluntary vehicle value protection agreements (VVPAs) for both financed and cash purchases, require disclosures, a 30‑day free‑look period and allow attorney general enforcement. Committee approved the bill by voice vote.
The House Regulated Industries Committee voted to advance House Bill 504, which creates a regulatory framework for voluntary vehicle value protection agreements (VVPAs) designed to cover gaps between a vehicle's value and the owner's remaining loan or trade-in amount in the event of loss, theft, damage or depreciation.
Presenters said the agreements differ from traditional GAP insurance because they are available to purchasers of financed and cash vehicles and are optional. The bill requires clear consumer disclosures about terms, benefits, eligibility and refund policies and mandates a 30‑day free‑look period during which consumers may obtain a full refund.
The measure also prohibits conditioning financing on purchase of a VVPA and authorizes the attorney general to enforce the law against providers that violate its consumer-protection provisions. Supporters said neighboring states already permit such agreements and the bill would bring Georgia into parity with those states and provide consumers additional options to protect vehicle investments.
After brief discussion and questions, the committee voted to report the bill favorably by voice vote. The transcript records an "aye" voice vote and no roll-call tally.
