On March 22, the Iowa governor signed HF 133 relating to refund payments made in connection with motor vehicle debt cancellation coverage.  The act provides that if a creditor is a financial institution, as defined in the Iowa consumer credit code or the Gramm-Leach-Bliley Act, and purchases a retail installment contract with voluntary debt cancellation coverage, “the only obligation of the creditor upon prepayment in full shall be to notify the motor vehicle dealer within thirty days of the prepayment.” It is the motor vehicle dealer’s responsibility to promptly determine whether a consumer is eligible to receive a refund of any voluntary debt cancellation coverage. Any refunds must be issued directly to the consumer within 60 days of the dealer receiving notice of prepayment from the creditor. The act is effective July 1.