HB 2458 Summary

• Caps annual percentage rate at 36% for consumer credit extended to active duty military members (on orders exceeding 30 days or active guard/reserve duty), veterans discharged within 12 months, and their dependents.

• Requires creditors to provide covered borrowers with written and verbal disclosures before credit issuance, including the annual percentage rate, Truth in Lending Act disclosures, and clear payment obligations.

• Prohibits creditors from rolling over/refinancing credit with new credit proceeds, requiring waiver of legal rights, imposing mandatory arbitration, using deposit accounts or vehicle titles as security, requiring military allotments, or charging prepayment penalties.

• Makes violations a class 1 misdemeanor and creates civil liability of at least $500 per violation plus actual damages, punitive damages, attorney fees, and court costs; agreements violating the chapter are void.

• Declares arbitration agreements unenforceable against covered members and dependents, and prevents the chapter's protections from being waived based on nonresident or military status.