Louisiana

The relevant statute is the Louisiana Motor Vehicle Sales Finance Act, La. Rev. Stat. §§6:969.1 through 6:969.41 (“LA-MVSFA”).

A. Actions creditor may take: LA-MVSFA §6:969.26(B) - If buyer does not obtain the required property insurance on the vehicle, creditor may purchase insurance coverage, including single interest coverage, and may add the premiums to the outstanding balance of the debt.

B. Notices required: LA-MVRISA §6:969.26(B) - Prior to purchasing insurance coverage, creditor must give notice to buyer, and a 15 day right to cure.

C. Charges permitted: No express statutory provision.

D. Finance charge allowed on creditor's payment: LA-MVSFA §696.26(B) - Insurance premiums may be added to the outstanding balance of the customer’s contract and made subject to additional loan finance charges or credit service charges at the rate previously agreed to by the borrower.

Click here to view relevant Louisiana Code and Regulations.