The Car Buyer Bill of Rights, effective July 01, 2006 prohibits every dealer, when assigning a conditional sale contract, to a lender or outside financing agency, from receiving or accepting a finance charge in an amount in excess of:
- 2.5% for contracts up to 60 months and
- 2% for contracts over 60 months. This limitation does not apply when:
the assignment requires the dealer to bear the entire risk of financial performance of the buyer. the assignment is more than 6 months after the date of the conditional sale contract.
