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House Bill 1083

House Bill 1083

ARCHIVE (2013)

Latest Information

DIGEST OF HB 1083 (Updated February 12, 2013 1:58 pm - DI 101)

Charges for consumer loans and credit sales. Makes the following changes for purposes of the statutes that prescribe the maximum credit service charge for a consumer credit sale (other than a sale involving a revolving charge account) and the maximum loan finance charge for a supervised loan: (1) Increases the applicable amounts financed that are subject to the graduated service charge or loan finance charge percentages. (2) Increases the service charge or loan finance charge percentage that applies if the graduated percentages do not apply from 21% to 25%. Increases from 21% to 25% the permitted loan finance charge for consumer loans other than supervised loans. Provides that a lender may contract for and receive a loan origination fee of not more than $50 for consumer loans other than supervised loans and for supervised loans. (Current law provides that the permitted origination fee is 2% of the loan amount (or 2% of the line of credit for a revolving loan) for consumer loans other than supervised loans, and does not provide for any origination fee for supervised loans.) Specifies that a lender may impose the permitted minimum loan finance charge only if the lender does not assess a loan origination fee. Provides that if a lender retains any part of a loan origination fee charged on a loan that is paid in full by a new loan from the lender within three months of the prior loan, the lender may not charge a loan origination fee on the new loan.
Current Status:
Defeated - first House
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