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Senate Bill 0238


Senate Bill 0238

ARCHIVE (2013)

Latest Information

 

DIGEST OF SB 238 (Updated April 8, 2013 6:00 pm - DI 84)


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. For consumer loans other than supervised loans, provides that the lender may contract for and receive a loan origination fee of not more than: (1) 2% of the loan amount (or line of credit, for a revolving loan), in the case of a loan secured by an interest in land; or (2) $50, in the case of a loan not secured by an interest in land. (Current law provides that the permitted origination fee is not more than 2% of the loan amount or line of credit (and is limited to the part of the loan that does not exceed $2,000 if the loan is not primarily secured by land). For supervised loans, provides that the lender may contract for and receive a loan origination fee of not more than $50. (Current law does not provide for an origination fee for supervised loans.) For both supervised loans and consumer loans other than supervised loans, provides the following: (1) That the permitted minimum loan finance charge may be imposed only if the lender does not assess a loan origination fee. (2) That in the case of a loan not secured by an interest in land, 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 same lender, the following apply: (A) If the loan is paid in full by the new loan within three months after the date of the prior loan, the lender may not charge a loan origination fee on the new loan (or on the increased credit line, for a revolving loan). (B) The lender may not assess more than two loan origination fees in any 12 month period.
    Current Status:
     Law Enacted
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