HB 676 (BR 1123) - J. Gooch, J. Vincent
AN ACT relating to title pledge lenders.
Create new sections of KRS Chapter 368 to define terms; to authorize a title pledge lender to make loans of money on pledges of titled personal property; to require a license in order to engage in the business of title loan lending; to establish the requirements to qualify for a license; to establish the information and manner of the application for a license; to require an investigation fee of $500 for each location, evidence of capital requirements, financial statements, and evidence of compliance with state labor laws to accompany each license application; to establish requirements regarding the posting of the license; to establish that a license may be renewed for the next 12 months upon payment of an annual fee of $500; to authorize the department to promulgate administrative regulations to carry out the provisions of this Act; to require each licensee to keep business records, and to prohibit a licensee from advertising that a title pledge loan will be made without identification; to establish the length of the title pledge loans, the interest rates of title pledge loans, the fees and charges permitted, the civil remedies allowed; to establish the requirements a title pledge lender must meet regarding disclosure including rates of interests, amounts owed, maturity date of the title pledge lending transaction, length of grace period, notice of how forfeiture occurs, storage fee charges, repossession fees, fees for filing a lien on a certificate of title; to require the title pledge lender to have the pledgor sign the disclosure statement and to furnish a copy to the pledgor; to establish a grace period for 30 days; to set forth that an agreement between the parties may extend the date of maturity; to establish how pledged titled personal property may be redeemed by the pledgor and when and how the title pledge lender may dispose of pledged titled personal property; to establish how personal property found in a repossessed motor vehicle will be held, noticed to the owner, and disbursed; to establish a hearing is required for license revocation; and to establish a penalty section for provisions violations.
HB 676 - AMENDMENTS
HFA (1, J. Coleman) - Require a title lender to be subject to the fee, default and other charges provided in KRS 288.530.
HCA (1, J. Gooch) - Amend to exclude mobile homes from the definition of "titled personal property"; amend to set forth that surety and capital requirements are for all offices, not for each office; amend to delete certain shareholders from the application investigation process; amend to require that financial statements be reviewed by a CPA; amend to require that reports of examination be confidential with certain exceptions; amend to require that all parties agree to an extension of the transaction; amend to limit the amount of the transaction to four thousand dollars ($4,000); amend to delete a requirement that dollar amounts of the cost to the pledgor to redeem the pledged titled property in any thirty (30) day period after the first thirty (30) day period of the transaction; amend to replace a twenty-five dollar ($25) cap on the repossession fee to the cost of the lender; and amend to require the lender to return any personal property to the owner of the vehicle found in a vehicle that has been repossessed.
Feb 20-introduced in House
Feb 23-to Banking and Insurance (H)
Feb 27-posted in committee
Mar 5-reported favorably, 1st reading, to Calendar with Committee Amendment (1)
Mar 6-2nd reading, to Rules; floor amendment (1) filed; posted for passage in the Regular Orders of the Day for March 9, 1998
Mar 16-3rd reading, passed 82-13 with committee amendment (1) and floor amendment (1)
Mar 17-received in Senate
Mar 18-to Banking and Insurance (S)