Bill Text: IN HB1410 | 2011 | Regular Session | Amended
Bill Title: Information about credit counseling services.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2011-02-22 - First reading: referred to Committee on Insurance and Financial Institutions [HB1410 Detail]
Download: Indiana-2011-HB1410-Amended.html
Citations Affected: IC 24-4.5.
Effective: Upon passage.
January 18, 2011, read first time and referred to Committee on Financial Institutions.
February 10, 2011, amended, reported _ Do Pass.
Digest Continued
each year, the information provided through: (1) the lender's toll free telephone number; and (2) any web page maintained by lender; to ensure that the information is consistent with that available from the United States Trustee or a bankruptcy administrator. Provides that the toll free telephone number required to be maintained: (1) may connect a borrower to an automated system, such as an interactive voice response system; and (2) may be a telephone number designed to receive customer service calls generally, if the option to receive the required information is in the first menu of options given to the borrower.
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(2) In addition to the requirements of subsection (1), the lender must conspicuously display in bold type a notice to the public both in the lending area of each business location and in the loan documents the following statement:
"WARNING: A small loan is not intended to meet long term financial needs. A small loan should be used only to meet short term cash needs. The cost of your small loan may be higher than loans offered by other lending institutions. Small loans are regulated by the State of Indiana Department of Financial
Institutions.
A borrower may rescind a small loan without cost by paying the
cash amount of the principal of the small loan to the lender not
later than the end of the business day immediately following the
day on which the small loan was made.".
(3) The statement required in subsection (2) must be in:
(a) 14 point bold face type in the loan documents; and
(b) not less than one (1) inch bold print in the lending area of the
business location.
(4) After December 31, 2011, a lender shall do the following:
(a) Subject to subsection (5), conspicuously:
(i) display, using the print size and type specified in
subsection (3)(b), in the lending area of each business
location of the lender; and
(ii) include in each pamphlet provided to a borrower under
subsection (6) after December 31, 2011;
a toll free telephone number that the borrower may call to
receive information about accessing credit counseling
services.
(b) Maintain the toll free telephone number described in
subdivision (a) in the manner prescribed by subsection (5).
(5) The following apply with respect to the requirements set
forth in subsection (4):
(a) For purposes of subsection (4), "credit counseling service"
means a nonprofit budget and credit counseling agency
approved by the United States Trustee or a bankruptcy
administrator under 11 U.S.C. 111(a)(1) to provide credit
counseling services in Indiana.
(b) The toll free telephone number described in subsection (4)
and the Internet web site address described in subdivision (c)
shall be printed immediately below the statement required by
subsection (2) on each display in the lending area of the
lender's business locations.
(c) In addition to the information required by subsection
(4)(a), the lender shall print on each display described in
subdivision (b), or on the pamphlet described in subsection
(6), an Internet web site address that the borrower may access
to receive information about accessing credit counseling
services. An Internet web site address provided under this
subdivision may be for either of the following:
(i) An Internet web site that is maintained by the lender
and through which the borrower may access the
information required by subdivision (d) for at least three
(3) credit counseling services, as described in subdivision
(d). The Internet web site address provided by the lender
must be for a direct link to the specific Internet web page
where the lender maintains the information described in
this clause.
(ii) The United States Trustee's Internet web page through
which the borrower may directly access the information
described in subdivision (d) for credit counseling services
in Indiana.
(d) The lender shall provide:
(i) through the toll free telephone number required to be
maintained under subsection (4)(b) and through any
Internet web site that the lender chooses to maintain under
subdivision (c)(i); and
(ii) to the extent available from the United States Trustee
or a bankruptcy administrator;
the name, street address, telephone number, and Internet web
site address for at least three (3) credit counseling services.
For purposes of clause (ii), the information required to be
provided by this subdivision is available from the United
States Trustee or a bankruptcy administrator if it is available
through the Internet web page described in subdivision (c)(ii).
If one (1) or more items of information required by this
subdivision are not available through the Internet web page
described in subdivision (c)(ii) with respect to a particular
credit counseling service, a lender complies with this
subdivision if the lender provides each item of information
required by this subdivision that is available through the
Internet web page described in subdivision (c)(ii) with respect
to the particular credit counseling service.
(e) Not later than December 31 of each year, the lender shall
update the information provided under subdivision (d)
through the lender's toll free telephone number to ensure that
the information provided is consistent with that available
from the United States Trustee or a bankruptcy
administrator. The lender shall also, by the date required by
this subdivision, ensure that the Internet web site address
provided by the lender under subdivision (c) is accurate. If the
lender chooses to maintain an Internet web site described in
subdivision (c)(i), the lender shall also, by the date required by
this subdivision, update the information available on the
specific Internet web page where the lender maintains the
information described in subdivision (d), to ensure that the
information provided is consistent with that available from
the United States Trustee or a bankruptcy administrator.
(f) The toll free telephone number required to be maintained
under subsection (4)(b):
(i) may connect a borrower to an automated system, such
as an interactive voice response system, through which the
borrower may obtain the information required by
subdivision (d) by inputting information using a touch tone
telephone or similar device; and
(ii) may be a toll free telephone number designed to receive
customer service calls generally, as long as the option to
receive the information required by subdivision (d) is listed
as one (1) of the options in the first menu of options given
to the borrower.
(4) (6) When a borrower enters into a small loan, the lender shall
provide the borrower with a pamphlet approved by the department that
describes the following:
(a) The availability of debt management and credit counseling
services. and After December 31, 2011, the information
included in the pamphlet under this subdivision must include:
(i) the toll free telephone number described in subsection
(4)(a); and
(ii) an Internet web site address described in subsection
(5)(c).
(b) The borrower's rights and responsibilities in the transaction.