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IN SB0084
Bill
Status
1/3/2019
Primary Sponsor
Eddie Melton
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AI Summary
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Replaces the existing tiered finance charge structure for small loans (15% on first $250, 13% on $250-$400, 10% on $400-$550) with a single maximum annual rate of 36% of principal
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Expands the definition of "finance charges" to include all charges for ancillary products or services and any fees incident to making or collecting a small loan
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Prohibits lenders from using devices or schemes designed to evade rate limits, including sales/leaseback arrangements, catalog sales, and transactions involving purported cash rebates
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Bans making, offering, or guaranteeing small loans with rates exceeding permitted limits through 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 Insurance and Financial Institutions
1/3/2019