IN SB0614

Legislative Description

Financial services. Makes the following change to the Uniform Consumer Credit Code (UCCC): (1) Amends the provisions authorizing specified additional charges for consumer credit sales and consumer loans to: (A) permit a seller or a lender, as applicable, to contract for and receive a charge not to exceed $10 for procuring a credit report; and (B) in the case of a revolving loan account, permit a lender to contract for and receive a transaction fee that may not exceed the greater of: (i) 2% of the amount of the transaction; or (ii) $10. (Current law authorizes the lender to charge a transaction fee in the lesser of these two amounts.) (2) Replaces the authorized $5 delinquency charge (subject to indexing by the department of financial institutions) for consumer credit sales and consumer loans with a nonindexed delinquency charge of: (A) $5 if installments are due every 14 days or less; (B) $25 if installments are due every 15 days or more; or (C) $25, in the case of a single installment due at least 30 days after the consumer credit sale or consumer loan is made. (3) Specifies that a creditor may not charge or collect a delinquency charge on a payment that: (A) is paid within 10 days after its scheduled due date; and (B) is otherwise a full payment of the payment due for the applicable installment period; if the only delinquency with respect to a consumer credit sale or a consumer loan is attributable to a delinquency charge assessed on an earlier installment. Amends a provision in the chapter in the Uniform Commercial Code concerning secured transactions to provide that upon a secured party's failure to comply with the chapter in the case of a transaction in which consumer goods serve as collateral, a debtor or secondary obligor at the time of the secured party's failure may recover in an individual action specified amounts. (Current law does not specify that the specified amounts must be recovered in an individual action.)

Last Action

Committee Referrals