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IN HB1319
Bill
Status
2/1/2018
Primary Sponsor
Martin Carbaugh
Click for details
AI Summary
HB 1319 Summary
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Creates a new loan product called "unsecured consumer installment loans" with principal amounts between $605 and $1,500, payable in three or more equal installment payments.
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Allows lenders licensed to make small loans to also make unsecured consumer installment loans under the same license, subject to the same licensing requirements and procedures.
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Establishes finance charge limits of 15% on the first $605 and 7.5% on amounts over $605, plus a monthly maintenance fee up to $8 per $100 of original principal.
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Restricts loan terms to 3-12 months, prohibits consecutive loans within 7 days of payoff, and limits total monthly payments to 20% of borrower's monthly gross income.
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Imposes $1,000 annual license fee per location to support financial education programs and requires lenders to provide borrowers with information about the 211 telephone dialing code for human services.
Legislative Description
Small loans and unsecured consumer installment loans. Authorizes a lender that is licensed by the department of financial institutions (department) to make small loans under the Uniform Consumer Credit Code (UCCC) to make unsecured consumer installment loans under the same license. Defines an "unsecured consumer installment loan" as a loan: (1) with a principal amount that is: (A) more than $605 and not more than $1,500; and (B) payable in three or more substantially equal periodic payments; and (2) in which the lender holds one or more checks of the borrower for a specific period, or receives the borrower's authorization
Last Action
First reading: referred to Committee on Commerce and Technology
2/1/2018