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Senate Bill 0405

Senate Bill 0405

ARCHIVE (2004)

Latest Information

DIGEST OF SB 405 (Updated February 18, 2004 5:41 pm - DI 108)

Small loans. Makes various changes in the small loan provisions of the Uniform Consumer Credit Code, including: (1) prohibits the renewal of a small loan; (2) removes limitations on finance charges; (3) increases delinquency charges; (4) allows a small loan to be secured by a borrower's authorization to debit an account instead of a borrower's check; (5) increases civil penalties and statutory damages from $1,000 to $2,000; and (6) prohibits a small loan if the total payable amount of the small loan exceeds 15% of the borrower's monthly gross income. (Current law provides that a small loan is prohibited if it exceeds 20% of the borrower's monthly net income.) Repeals provisions that relate to the renewal of a small loan.
    Current Status:
    Out of Committee 2nd House
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