SB 233 (BR 2181) - T. Jensen
AN ACT relating to consumer loans.
Amend KRS 288.530 to: authorize an alternative loan charge and interest, not to exceed 8%, on consumer loans of $100 to $1000, notwithstanding other provisions of law; to provide that the minimum term for such loans shall be 3 months and the maximum term shall be 15 months; require the refund of the installment account handling charge when such a loan is prepaid in full; provide that no insurance charge or any other charge of any nature is permitted on such loans, except a one time delinquent payment charge of the greater of $10 or 5% of the delinquent installment, a return check charge, lawful fees actually paid by the licensee for filing, recording or releasing any instrument securing the loan, a fee or premium for insurance in lieu of perfecting a security interest, attorney's fees and court costs actually incurred in collection of the loan, and interest after maturity at a rate equal to the lesser of the annual percentage rate on the loan or 36% per annum; loan charges may not be allowed on such a loan to a borrower with more than one loan with the same licensee, except a licensee may make a loan having the charges allowed to pay off the balance due under any other loan made by the licensee, provided the aggregate of the loans does not exceed $1,000, or if an affiliate of the licensee acquires in a bulk transaction of loans made under this subsection a loan under this subsection shall not be a violation of this subsection or any other provision of law; provide that repayment of such loans shall be in substantially equal monthly installments and such loan may be prepaid by a loan from the same licensee who made the initial loan until at least 61 days after the initial loan date; amend KRS 288.533 to increase the charge for credit investigations from $1 to $1.50 for each $50, or a portion thereof, of the principal amount of the loan.
Feb 27-introduced in Senate
Mar 1-to Banking and Insurance (S)