SB3514 Summary

• Amends the Consumer Installment Loan Act to regulate income share agreements (ISAs), which are transactions where borrowers commit to pay a percentage of future income in exchange for money or tuition financing.

• Requires ISA providers to disclose specified terms including amount advanced, payment percentage, maximum required payments, payment cap, annual percentage rate calculations, grace periods, and borrower rights, at least 3 business days before transaction consummation.

• Imposes limits on ISAs: contractual payment percentage cannot exceed 5% of qualified income, maximum term of 60 months, payment cap cannot exceed 1.10 times the advance amount, and advances cannot exceed $5,000.

• Prohibits payment collection while borrower is enrolled in a covered educational program or during a 6-month grace period after leaving; requires borrowers to exhaust federal student loans and state grants before entering educational ISAs.

• Establishes consumer protections including prohibitions on unfair/deceptive practices, confessions of judgment, wage assignment provisions, discrimination based on protected characteristics, and requires providers to implement dispute resolution processes with timely investigation and appeal procedures.