“Industry Expertise” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan Bucherer.

As a trusted leader in tech-enabled solutions for finance and insurance products (F&I) in the automotive finance industry, F&I Sentinel actively monitors evolving state and federal legislative activity. This summary highlights key changes that will affect AFSA members and industry partners this year.

October 1st Alert: Navigating Key Regulatory Shifts in MD, NE, & NV

The regulatory landscape for auto finance and F&I products continues its dynamic evolution, with states increasingly taking the lead on consumer protection initiatives. Since October is right around the corner–bringing with it several significant updates to the laws in Maryland, Nebraska, and Nevada–AFSA members need to be aware of and start getting prepared for the upcoming changes.

Here’s a look at what’s in store to start the fourth quarter:

Maryland House Bill 1046 (HB1046): Protecting Mechanical Repair Contracts

Effective October 1, 2025, Maryland’s HB1046 will prohibit mechanical repair contracts from excluding coverage solely for issues identified in technical service bulletins (TSBs). TSBs are communications from vehicle manufacturers to their dealerships about common or recurring issues. This means providers cannot deny claims solely because a vehicle’s problem is documented in such a bulletin, and cannot include contract provisions that exclude coverage solely because a service or repair is listed in a TSB. This measure aims to ensure consumers can utilize their repair contracts for known vehicle problems, enhancing consumer protection. Lenders should require confirmation that the add-on products they finance have been updated to comply with the new law.

Nebraska Legislative Bill 474 (LB474): Modernizing Lending Statutes

The majority of Nebraska’s LB474 will also become effective on October 1, 2025. This bill combines certain provisions of the state’s existing Installment Loan Act and Installment Sales Act into a single, modernized statute. It also updates the Nebraska Money Transmitters Act. While largely technical, these changes streamline the regulatory framework applicable to installment sales and loans and may impact record-keeping and examinations. For example, the Banking Department may perform consolidated exams covering all branches, which may now include all required compliance records.

Nevada Assembly Bill 498 (AB498): Expanding Motor Club Agent Licensing

As of October 1, 2025, Nevada’s AB498 will ease restrictions on out-of-state motor club agents. The law removes the licensure requirement for out-of-state agents to operate in the state if their home state offers reciprocal licensure and eliminates the need for motor clubs to maintain a “usual place of business” within Nevada. Agents will still need to include their home office address on the service contract or membership card. This change should streamline multi-jurisdictional servicing models but may also require auto lenders to review their due diligence processes for roadside assistance administrators. Lenders should consider confirming that new out-of-state agents meet specific service quality, financial stability, and data security standards.

These changes highlight the complex and evolving regulatory environment for F&I products, and more are coming. Consistently monitoring for legislative and regulatory changes, and requiring confirmation that add-on products have been updated to account for such changes, is an essential component of any compliance program.

As always, F&I Sentinel is dedicated to monitoring the complex, ever-evolving compliance environment. Contact our Concierge Compliance Team for more details on these and all other regulatory developments.