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House Bill (S)

Authored by

DIGEST

Small loans and unsecured consumer installment loans. Authorizes a lender that is licensed by the department of financial institutions (department) to make small loans under the Uniform Consumer Credit Code (UCCC) to make unsecured consumer installment loans under the same license. Defines an "unsecured consumer installment loan" as a loan: (1) with a principal amount that is: (A) more than $605 and not more than $1,500; and (B) payable in three or more substantially equal periodic payments; and (2) in which the lender holds one or more checks of the borrower for a specific period, or receives the borrower's authorization Small loans and unsecured consumer installment loans. Authorizes a lender that is licensed by the department of financial institutions (department) to make small loans under the Uniform Consumer Credit Code (UCCC) to make unsecured consumer installment loans under the same license. Defines an "unsecured consumer installment loan" as a loan: (1) with a principal amount that is: (A) more than $605 and not more than $1,500; and (B) payable in three or more substantially equal periodic payments; and (2) in which the lender holds one or more checks of the borrower for a specific period, or receives the borrower's authorization to debit the borrower's account on one or more occasions for a specific period, before the lender deposits the check or debits the account. Amends the UCCC chapter governing small loans to establish the following with respect to unsecured consumer installment loans: (1) An authorized finance charge and monthly maintenance fee. (2) A $25 returned check fee. (3) Mandatory consumer disclosures, including the inclusion in the mandatory consumer pamphlet of information about the 211 telephone dialing code. (4) An annual fee assessed on lenders of $1,000 per license and $1,000 per Indiana branch location, for the department's use in supporting financial education programs. (5) A requirement that the loan term be at least three months but not more than 12 months. (6) Restrictions with respect to consecutive unsecured consumer installment loans. (7) Lending prohibitions based on a borrower's monthly gross income. (8) Provisions concerning a lender's duties upon payments made by a borrower. (9) Prohibitions against prepayment penalties and loan renewals. (10) Prohibitions against a borrower having: (A) a small loan and an unsecured consumer installment loan; or (B) more than one unsecured consumer installment; outstanding at the same time. (11) Permissible and prohibited remedies upon a borrower's default. (12) Remedies and damages for violations by licensees and unlicensed persons. (13) Prohibited acts by a lender. Removes from the chapter governing small loans and unsecured consumer installment loans provisions specifying a reference base index for use by the department in adjusting specified dollar amounts designated as subject to change. Makes conforming adjustments to specified dollar amounts in provisions concerning small loans. ... View more