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IN SB0084

Bill

Status

Introduced

1/3/2019

Primary Sponsor

Eddie Melton

Click for details

Origin

Senate

2019 Regular Session

AI Summary

  • 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

  • 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

  • Prohibits lenders from using devices or schemes designed to evade rate limits, including sales/leaseback arrangements, catalog sales, and transactions involving purported cash rebates

  • 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

  • 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

Committee Referrals

Insurance & Financial Institutions1/3/2019

Full Bill Text

No bill text available