Effective with the Governor’s signature on June 1, 2005, FADA dealers can now enjoy the same protections under Florida law for lease transactions as those that apply in retail installment sales. For many years, dealers executing lease transactions have had to provide customers with every document signed by the customer in the process of a lease transaction. With the FADA passage of HB 853, we have a new law that more closely mirrors the requirements in a retail installment sale and the language is as follows:
521.004 Disclosures.--A retail lessor must:
(2) Provide the retail lessee with a copy of the lease
agreement each document signed by the retail lessee during the
course of the lease transaction
This new law is effective now as it was signed by the Governor on June 1, 2005.
As you know, FADA did not seek passage as a means of restricting the flow of documents to the customer. This legislation was passed due to some frivolous suits filed by plaintiff’s attorneys, who used this law as a technical violation when dealers did not provide documents like the customer’s check or credit application.
FADA recommends that each dealership carefully review its document delivery practices and develop a new policy consistent with this law and consistent with the needs of your customers.
Even though the new law requires that you provide only the lease agreement, you are still required to provide the other forms otherwise mandated by law (pollution, odometer, etc.)
FADA’s legal team has always advised our members to make copies available of any and all documents requested by the customer as a good faith policy. If special circumstances exist that might render this policy unworkable we recommend that you follow this revised wording in Chapter 521 and consult with your legal counsel.
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Information provided is designed to be accurate and authoritative, with respect to the subject matter covered. It is provided with the understanding that FADA is not engaged in rendering legal services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.
