The act of December 9, 2002 (P.L.1446, No.186) amended the act of July 28,
1947 (P.L.1110, No. 476), known as the Motor Vehicle Sales Finance Act (MVSFA).
Section 20 of the legislation provided the following:
Because many of the circumstances and events that led to the initial
adoption of the act in 1947 have substantially changed due to substantial
improvements in business practices and expanded Federal regulations, a
study of proposals to update and modernize the act shall be conducted by
the Joint State Government Commission and the recommendations of the
commission reported to the General Assembly. In addition to changes to
the act, the commission shall also consider the advisability of merging the
provisions of the act of October 28, 1966 (1st Sp.Sess., P.L.55, No.7),
known as the Goods and Services Installment Sales Act [GSISA], and
other consumer finance legislation into a consolidated Consumer Credit
Code which avoids duplication of Federal law and regulations and
promotes uniformity of law among the states.
Section 20 further provided for the creation of an eight-member legislative task
force consisting of four members of the Senate and four members of the House. In order
to assist the Task Force, the Joint State Government Commission was empowered to
appoint an advisory committee, which was to include a representative of the Department
of Banking, the Consumer Protection Division of the Office of Attorney General, the
Pennsylvania Automotive Association, the Pennsylvania Retailers' Association and the
Pennsylvania Bankers Association, along with other individuals having knowledge and
expertise regarding motor vehicle sales finance, installment sales and consumer
protection laws and regulations.
Representative Chris Ross was named Chair of the Task Force. On May 10,
2004, the Task Force held its organizational meeting.
Subsequently, an advisory committee was organized, consisting of the Secretary
of Banking, the Agent Supervisor of the Consumer Protection Division of the Office of
Attorney General, attorneys, a law professor and representatives of financial institutions,
business interests and consumer interests. On September 14, 2004, the Advisory
Committee held its organizational meeting, and Representative Chris Ross agreed to
assume the chairmanship of the Advisory Committee as well. For organizational
purposes, the Advisory Committee formed three subcommittees to facilitate the review of
consumer finance legislation and discuss the creation of a consolidated Consumer Credit
Code in Pennsylvania.
and making legislative recommendations. As in the case of the FLNFT
The MVSFA Subcommittee was specifically charged with reviewing the 1947
Act as amended and making legislative recommendations. The members of the MVSFA
Subcommittee represented the interests of the Department of Banking, the Consumer
Protection Division of the Office of Attorney General, automobile dealers, and sellers of
manufactured housing and recreational vehicles. From March 2005 to January 2006, the
subcommittee met a total of nine times.
The Subcommittee on Federal Law and New Financial Transactions (FLNFT)
was specifically charged with reviewing the impact of Federal law on consumer finance
legislation and determining the extent to which legislation should be proposed for
unregulated financial transactions in Pennsylvania. The subcommittee also discussed
whether any existing unconsolidated statutes could be brought into consolidated form
within the Pennsylvania statutes. In addition, the subcommittee began a review of the
Uniform Debt Management Services Act, drafted by the National Conference of
Commissioners on Uniform State Laws, for inclusion in a proposed Consumer Credit
Code. Several consultants representing credit counseling service providers were invited
to participate in the review process to facilitate discussions regarding standard business
practices and accreditation. From March 2005 to May 2006, the subcommittee met a
total of eight times.
The GSISA Subcommittee was specifically charged with reviewing the 1966 Act
Subcommittee, several consultants were invited to participate in the review process.
From March to September 2005, the subcommittee met a total of five times.
The Advisory Committee met in February, March, May and September 2006 to
discuss the progress of the subcommittees and review the drafts of the proposed
legislation. The Advisory Committee also reviewed comments from outside advocacy
groups whose interests are affected by the work product of the Advisory Committee.
As a result of the Advisory Committee discussions, consensus was reached on the
proposed framework of a consolidated Consumer Credit Code (12 Pa.C.S.),
contain, along with other statutory provisions, general provisions (Chapter 41) and a
modernized, updated Goods and Services Installment Sales Act (Chapter 43).
GSISA provisions were eliminated from proposed 12 Pa.C.S. Chapter 43 because they
are covered by Federal law or because of the restructuring of the statutory provisions into
consolidated form. This report also
The Advisory Committee agreed that the practice of cross-collateralization
should be allowed to continue, acknowledging that without the ability to crosscollateralize
goods, a seller may not necessarily allow a buyer to refinance, and as a
result, the buyer may face multiple monthly payments.
On November 21, 2006, the Task Force met and authorized both the publication
of a report, which contains the recommendations of the Advisory Committee relating to
proposed 12 Pa.C.S. Chapters 41 and 43, and the introduction of the legislation contained
in the report.
This report contains the proposed legislation, notes and official comments. The
notes follow the sections and provide the basis for the statutory provisions or explain the
differences between the statutory provisions and the GSISA. The comments also follow
the sections and explain as necessary the statutory provisions. The official comments
may be used in determining the intent of the General Assembly.
provides a summary of the recommendations, a detailed table of contents for the
proposed legislation, conforming amendments, transitional language and source tables.
Inclusion of any recommendation in this report does not necessarily reflect the
endorsement of the Task Force. In addition, while this report represents the consensus of
the Advisory Committee, it does not necessarily reflect unanimity among the members on
each individual recommendation.