This week, the American Financial Services Association followed up on its letter to New Hampshire Banking Commission with a petition to state officials asking for a delay of major restructuring of documents associated with the financing and retailing of vehicles in the Granite State.

AFSA senior vice president Danielle Fagre Arlowe asked for an emergency decision by state authorities, explaining why the compliance changes should not be implemented until Jan. 1.

“Our members in the vehicle finance industry and New Hampshire dealers now find themselves in a precarious and impossible situation,” Fagre Arlowe wrote in her letter. “Because the changes required are immediate upon enactment, but cannot be immediately complied with (i.e., necessary forms changes, customer notice requirements, operational changes, etc.), our members and New Hampshire dealers must either continue doing business in compliance with the existing law but not the new provisions of the bill or cease the retail financing of vehicle sales in the state altogether until they comply with the new provisions. Both choices are unacceptable, and neither choice helps New Hampshire consumers.

“This untenable choice is compounded for those of our members who, as part of their business model, utilize the securitization process to fund the purchase of consumer retail installment sale vehicle contracts,” she continued.

“Securitizations require warrantees that all contracts in the securitization pool comply with all applicable laws. This means that contracts entered into after the Governor’s signature but before the law can be complied with (or arguably back to the bill’s retroactive stated July 1, 2024 effective date, though we of course expressly disclaim any ability to comply with something retroactively), cannot be included in securitization pools,” Fagre Arlowe went on to say.

“Without this critical source of funding, those members are highly unlikely to continue their support of consumer vehicle purchases in the state,” she added.