Panel backs amendment to let consumers access dealer‑funded recovery account after warranty breaches
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Summary
HB 13 86 was reported with amendments (5–2). Sponsored by Delegate Wyatt and backed by dealer associations, the bill clarifies access to the motor vehicle transaction recovery fund so consumers with final judgments for breach of extended‑warranty contracts can recover costs from the dealer‑funded account; sponsors and dealers said the fund is dealer‑supported and not general fund money.
Delegate Wyatt introduced HB 13 86 at the request of the Virginia Independent Auto Dealers Association to clarify who pays into and may access the motor vehicle transaction recovery fund. Wyatt said the bill would authorize consumers who receive final court judgments for breach of extended‑warranty contracts to recover from the dealer‑funded account.
William Childress of the Virginia Independent Automobile Dealers Association described instances where courts awarded judgments for breach of contract but consumers could not access recovery because the judgment did not align with fund criteria; the bill would allow recovery for losses resulting from breach of an extended contract.
Delegates questioned whether the change would affect the fiscal solvency of the fund. Committee members and association representatives said the fund is supported by dealers (not general‑fund money) and that the fiscal impact is indeterminate because increased claims could require closer monitoring of fund balances, fee adjustments, or tighter claim criteria.
The motion to report HB 13 86 with amendments carried on a vote of 5 to 2. Sponsors and dealer associations said they would continue to work on clarifying language and monitoring the fund’s long‑term solvency.
