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IN SB0325
Bill
AI Summary
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Replaces incremental finance charge limits with a maximum annual rate of 36% of the principal for all small loans, effective July 1, 2018.
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Defines "finance charges" to include all charges for ancillary products or services and any other charges or fees incident to making or collecting a small loan, but excludes permissible default fees.
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Prohibits lenders and assignees from making, offering, assisting, arranging, or guaranteeing small loans with rates exceeding permitted amounts by any method including mail, telephone, Internet, or electronic means, regardless of whether the lender has a physical location in Indiana.
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Maintains existing prohibitions on threatening use of criminal process, misleading statements, attorney's fees, check alterations, and unfair collection practices, and adds prohibitions on entering into renewals with borrowers.
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Makes violations of these provisions subject to penalties as deceptive acts under Indiana consumer protection law.
Legislative Description
Small loan finance charges. Changes the current incremental finance charge limits that apply to a small loan to a maximum annual rate. Prohibits certain acts with respect to financing of a small loan and makes a violation a deceptive act and subject to penalties.
Last Action
Senator Messmer added as coauthor
1/29/2018