HB 2503 — An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in motor vehicle sales finance, providing for return and refund of motor vehicles.

PRINTER'S NO.   3389

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2503
                                                  Session of
                                                    2026

     INTRODUCED BY BRIGGS, RIVERA, CEPEDA-FREYTIZ, HILL-EVANS,
        GUZMAN, CERRATO, BRENNAN, SHUSTERMAN, FLEMING, SANCHEZ,
        HOWARD AND INGLIS, MAY 11, 2026

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, MAY 11, 2026


                                     AN ACT
 1   Amending Title 12 (Commerce and Trade) of the Pennsylvania
 2      Consolidated Statutes, in motor vehicle sales finance,
 3      providing for return and refund of motor vehicles.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Chapter 62 of Title 12 of the Pennsylvania
 7   Consolidated Statutes is amended by adding a subchapter to read:
 8                               SUBCHAPTER E.1
 9                    RETURN AND REFUND OF MOTOR VEHICLES
10   Sec.
11   6265.1.   Definitions.
12   6265.2.   Disclosure.
13   6265.3.   Refund by dealer.
14   6265.4.   Civil cause of action.
15   6265.5.   Nonwaiver of subchapter.
16   § 6265.1.   Definitions.
17      The following words and phrases when used in this subchapter
 1   shall have the meanings given to them in this section unless the
 2   context clearly indicates otherwise:
 3      "Dealer."      A person in the business of buying, selling,
 4   leasing or exchanging vehicles in this Commonwealth.
 5      "Purchaser."      A person, or a successor or assignee, who has
 6   obtained possession or ownership of a used motor vehicle by
 7   lease, transfer or purchase or who has entered into an agreement
 8   or contract for the lease or purchase of a used motor vehicle
 9   which is used, leased or bought for use primarily for personal,
10   family or household purposes.
11   § 6265.2.      Disclosure.
12      The Attorney General shall transmit notice of a statement
13   that explains the duty of the dealer under this subchapter to
14   the Legislative Reference Bureau for publication in the next
15   available issue of the Pennsylvania Bulletin. The dealer shall
16   provide to the purchaser, at the time of sale of a motor vehicle
17   by the dealer, a copy of the Attorney General's statement and a
18   listing of zone offices, with addresses and phone numbers, that
19   may be contacted by the purchaser for the purpose of seeking
20   relief provided in this subchapter.
21   § 6265.3.      Refund by dealer.
22      (a)   Duty of dealer.--A dealer that sells or leases a motor
23   vehicle registered in this Commonwealth, upon notice from the
24   purchaser and no later than 10 days after the purchase or lease,
25   shall:
26            (1)    accept the return of the vehicle from the purchaser;
27      and
28            (2)    either:
29                  (i)   refund to the purchaser the full purchase price
30            or lease price, including all collateral charges, less a

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 1            reasonable allowance for the purchaser's use of the
 2            vehicle not exceeding the lesser of 10¢ per mile driven
 3            or 10% of the purchase price or lease price of the
 4            vehicle; or
 5                (ii)   if the vehicle sustains damage during the
 6            purchaser's use of the vehicle, and the dealer knew or
 7            should have known that the damage may occur, be permitted
 8            to retain a reasonable allowance so long as the damage
 9            does not substantially affect the use or safety of the
10            motor vehicle.
11      (b)   Form of refund.--The dealer shall pay the refund or
12   reasonable allowance under subsection (a) to the purchaser and
13   any lienholder as the interests may appear. A reasonable
14   allowance for use shall be that amount directly attributable to
15   use by the purchaser's note under subsection (a).
16      (c)   Time for refund.--The dealer shall pay the refund or
17   reasonable allowance under subsection (a) no later than 30 days
18   after the date the purchaser provides notice to the dealer.
19      (d)   Duty of purchaser to return vehicle.--The purchaser must
20   return the motor vehicle to the dealer to obtain a refund or
21   reasonable allowance under subsection (a). If, due to reasons of
22   size and weight or method of attachment or method of
23   installation, the purchaser cannot reasonably return the motor
24   vehicle, the purchaser shall notify the dealer in writing.
25   Written notice to the dealer shall constitute a return of the
26   vehicle if the purchaser is unable to return the vehicle. Upon
27   receipt of the notice, the dealer shall arrange for transport of
28   the vehicle. All costs of transporting the vehicle, if the
29   purchaser is unable to effect return, shall be at the
30   purchaser's expense.

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 1      (e)   Forfeiture of refund.--
 2            (1)    Except as provided under paragraph (2), a purchaser
 3      is not entitled to a refund if the condition of the motor
 4      vehicle is substantially different from the condition of the
 5      motor vehicle at the time of purchase and the condition
 6      affects the substantial use or safety of the vehicle.
 7            (2)    If the motor vehicle sustains damage that affects
 8      the substantial use or safety of the vehicle, and the dealer
 9      knew or should have reasonably foreseen that the vehicle was
10      in a condition, at the time of purchase or lease of the
11      vehicle, that could damage or affect the substantial use or
12      safety of the vehicle, the purchaser is entitled to a full
13      refund of the contract price and collateral charges.
14   § 6265.4.      Civil cause of action.
15      (a)   Remedies.--A purchaser of a motor vehicle who purchases
16   the motor vehicle from a dealer and suffers a loss as a result
17   of the dealer's failure to comply with this subchapter may bring
18   a civil action in a court of common pleas, in addition to other
19   relief. The purchaser shall be entitled to recover reasonable
20   attorney fees and all court costs in addition to remedies under
21   this subsection.
22      (b)   Violation.--A violation of this subchapter shall be
23   considered a violation of the act of December 17, 1968
24   (P.L.1224, No.387), known as the Unfair Trade Practices and
25   Consumer Protection Law. Nothing in this subchapter shall limit
26   the purchaser from pursuing a right or remedy under any other
27   law, contract or warranty.
28   § 6265.5.      Nonwaiver of subchapter.
29      The provisions of this subchapter may not be waived by the
30   dealer, purchaser or lienholder of the motor vehicle.

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1      Section 2.   This act shall apply to motor vehicles purchased
2   after the effective date of this section.
3      Section 3.   This act shall take effect in 90 days.




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