Comments: IN SB0587 | 2019 | Regular Session

Bill Title: Consumer credit. Repeals provisions specifying indexing of and changes of dollar amounts for purposes of consumer loans. Provides for a credit service charge not to exceed 36%. (Current law provides for variation in amount of a credit service charge based on the amount outstanding.) Increases the minimum credit service charge and consumer loan finance charge from $30 to $50. Increases from at least $300 to at least $1,500 the debt that must be secured for a seller in a consumer credit sale of goods to take a security interest in the goods. With respect to consumer loans: (1) increases from 25% to 36% the amount of a loan finance charge that a lender may charge; (2) increases from 2.083% to 3% the amount in relation to the debt on a revolving loan account over which the loan finance charge is considered to exceed the maximum annual percentage rate; (3) strikes a provision specifying requirements for charging the same loan finance charge on all amounts financed within a range; (4) increases from $50 the maximum amount of a nonrefundable prepaid finance charge to $150 or $250; and (5) increases from two to three the number of nonrefundable prepaid finance charges a lender may assess in a 12 month period. Repeals provisions specific to supervised loans and applies certain supervised loan provisions to consumer loans having a loan finance charge exceeding 25%, including increasing the principal amounts on which the term of an installment payment period depends. Increases the amount that must be financed before a creditor can require property insurance. Makes conforming amendments.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2019-02-18 - Senator Gaskill added as second author [SB0587 Detail]

Text: Latest bill text (Introduced) [PDF]

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