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IN HB1098
Bill
Status
1/7/2019
Primary Sponsor
Carey Hamilton
Click for details
AI Summary
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Replaces Indiana's tiered finance charge structure for small loans (previously 15% on first $250, 13% on $250-$400, 10% on $400-$550) with a single maximum annual rate of 36%
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Expands the definition of "finance charges" to include all charges for ancillary products, services, and any fees incident to making or collecting a small loan
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Prohibits lenders from using devices or arrangements designed to charge more than allowed, including sales/leaseback schemes, catalog sales, or fake cash rebate transactions
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Bans making or arranging small loans with rates exceeding permitted limits by any method—mail, telephone, Internet, or electronic means—regardless of whether the lender has a physical location in Indiana
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Effective date: July 1, 2019
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
First reading: referred to Committee on Financial Institutions
1/7/2019