MS HB1450

Allows small loan licensees to charge a fee for nonfiling or nonrecording insurance instead of the actual cost of recording a security instrument, with the fee capped at the Secretary of State's UCC1 financing statement filing fee.

Permits licensees to offer borrowers optional auto club membership after loan approval, with written notification that purchase is voluntary and not required for loan approval, and allows 30-day cancellation for full refund if no services used.

Requires licensee employees offering noncredit insurance to be properly licensed as insurance producers and appointed by the insurance company, and prohibits making insurance purchase a condition of obtaining credit.

Allows borrowers to pay noncredit insurance costs using funds other than loan proceeds or have costs deducted from loan proceeds.

Takes effect July 1, 2025.