New Law Affects Consumers Purchasing Service Contracts in New Mexico

State residents who are considering service contracts for their car, home, or consumer goods can now enjoy additional consumer protections thanks to Senate Bill 350, which went into effect June 14, 2019.

This law, signed by the governor in April, affects how service contracts, also known as extended warranties, are regulated in the state. It requires that automatic renewal provisions be presented in a clear and conspicuous manner and that consumers be notified by mail or, if given consent, by email 30 to 60 days before the renewal goes into effect. This law also provides that the service contracts must be cancellable by the consumer at any time with a pro-rata refund.

“We are thrilled to continue to improve regulations in this industry and make it easier for consumers to fully take advantage of service contracts,” said Tim Meenan, executive director of The Service Contract Industry Council. “We applaud the lawmakers who helped solidify service contracts as an important option for consumers who face many unknowns when it comes to servicing their big-ticket purchases.”

The new law, championed by the Service Contract Industry Council establishes an improved service contract framework for consumers, helping to provide clarity and ease in the service contract purchasing process.