Bill Text: OH HB682 | 2013-2014 | 130th General Assembly | Introduced
Bill Title: Relative to the extension of consumer credit to members and veterans of the U.S. armed forces, including the reserves, or of the national guard, and to members of their immediate families.
Sponsorship: Partisan Bill (Democrat 8)
Status: (Introduced - Dead) 2014-12-09 - To Military and Veterans Affairs [HB682 Detail]
Download: Ohio-2013-HB682-Introduced.html
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Representatives Pillich, Lundy
Cosponsors:
Representatives Antonio, Ashford, Barborak, Sheehy, Fedor, Hagan, R.
| To enact sections 1321.90 to 1321.94 of the Revised | 1 |
| Code relative to the extension of consumer credit | 2 |
| to members and veterans of the U.S. armed forces, | 3 |
| including the reserves, or of the national guard, | 4 |
| and to members of their immediate families. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That sections 1321.90, 1321.91, 1321.92, 1321.93, | 6 |
| and 1321.94 of the Revised Code be enacted to read as follows: | 7 |
| Sec. 1321.90. As used in sections 1321.90 to 1321.94 of the | 8 |
| Revised Code: | 9 |
| (A) "Consumer credit" means credit offered or extended to a | 10 |
| covered borrower primarily for personal, family, or household | 11 |
| purposes. "Consumer credit" does not include any of the following: | 12 |
| (1) Any credit transaction secured by an interest in the | 13 |
| covered borrower's dwelling, including a transaction to finance | 14 |
| the purchase or initial construction of a dwelling, any refinance | 15 |
| transaction, home equity loan or line of credit, or reverse | 16 |
| mortgage; | 17 |
| (2) Any credit transaction that is expressly intended to | 18 |
| finance the purchase of a motor vehicle when the credit is secured | 19 |
| by the vehicle being purchased; | 20 |
| (3) Any credit transaction that is expressly intended to | 21 |
| finance the purchase of personal property when the credit is | 22 |
| secured by the property being purchased. | 23 |
| (B) "Covered borrower" means a person who is a member or | 24 |
| veteran of the armed forces of the United States, including | 25 |
| reserve components thereof, or of the national guard, and any | 26 |
| member of the person's immediate family as defined in section | 27 |
| 102.01 of the Revised Code. | 28 |
| (C) "Creditor" means a person that is engaged in the business | 29 |
| of extending consumer credit or an assignee of such a person with | 30 |
| respect to any consumer credit extended. "Creditor" does not | 31 |
| include a national or state-chartered bank, savings bank, savings | 32 |
| and loan association, or credit union. | 33 |
| Sec. 1321.91. With respect to any extension of consumer | 34 |
| credit to a covered borrower, a creditor shall provide to the | 35 |
| borrower a written disclosure form containing all of the following | 36 |
| before the borrower becomes obligated on the transaction: | 37 |
| (A) The rate of interest applicable to the extension of | 38 |
| credit as an annual percentage rate; | 39 |
| (B) The total amount of fees and charges the borrower will be | 40 |
| required to pay in connection with the extension of credit; | 41 |
| (C) A statement, printed in boldface type of the minimum size | 42 |
| of ten points, as follows: "WARNING: The cost of this loan is | 43 |
| higher than the average cost charged by financial institutions on | 44 |
| substantially similar loans." | 45 |
| Sec. 1321.92. Notwithstanding any other provision of the | 46 |
| Revised Code to the contrary, a creditor may charge, collect, and | 47 |
| receive only the following fees and charges in connection with an | 48 |
| extension of consumer credit to a covered borrower: | 49 |
| (A) Interest calculated in compliance with 15 U.S.C. 1606, | 50 |
| and not exceeding an annual percentage rate of twenty-eight per | 51 |
| cent; | 52 |
| (B) Damages, costs, and disbursements to which the creditor | 53 |
| may become entitled to by law in connection with any civil action | 54 |
| to collect a loan after default. | 55 |
| Sec. 1321.93. A creditor shall not extend consumer credit to | 56 |
| a covered borrower if any of the following applies: | 57 |
| (A) The borrower is required to waive the borrower's right to | 58 |
| legal recourse under any otherwise applicable provision of state | 59 |
| or federal law, including any provision of the "Servicemembers | 60 |
| Civil Relief Act," 117 Stat. 2835, 50 U.S.C. App. 501. | 61 |
| (B) The creditor requires the borrower to submit to | 62 |
| arbitration or imposes onerous legal notice provisions in the case | 63 |
| of a dispute. | 64 |
| (C) The creditor demands unreasonable notice from the | 65 |
| borrower as a condition for legal action. | 66 |
| (D) The creditor uses a check or other method of access to a | 67 |
| deposit, savings, or other financial account maintained by the | 68 |
| borrower. | 69 |
| (E) The creditor knows there is no reasonable probability of | 70 |
| payment of the obligation by the borrower. | 71 |
| (F) The borrower has received two extensions of consumer | 72 |
| credit from a creditor within the immediately preceding sixty-day | 73 |
| period. | 74 |
| Sec. 1321.94. The superintendent of financial institutions | 75 |
| shall, in accordance with Chapter 119. of the Revised Code, adopt | 76 |
| any rules necessary to implement and enforce sections 1321.90 to | 77 |
| 1321.93 of the Revised Code, including a rule setting forth the | 78 |
| maximum amount a covered borrower may be indebted to creditors. | 79 |
