Indiana Senate Bill 587 (Prior Session Legislation)

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Spectrum: Partisan Bill (Republican 2-0)
Status: Introduced on January 14 2019 - 25% progression, died in committee
Action: 2019-02-18 - Senator Gaskill added as second author
Pending: Senate Insurance & Financial Institutions Committee
Text: Latest bill text (Introduced) [PDF]

Consumer credit. Repeals provisions specifying indexing of and changes of dollar amounts for purposes of consumer loans. Provides for a credit service charge not to exceed 36%. (Current law provides for variation in amount of a credit service charge based on the amount outstanding.) Increases the minimum credit service charge and consumer loan finance charge from $30 to $50. Increases from at least $300 to at least $1,500 the debt that must be secured for a seller in a consumer credit sale of goods to take a security interest in the goods. With respect to consumer loans: (1) increases from 25% to 36% the amount of a loan finance charge that a lender may charge; (2) increases from 2.083% to 3% the amount in relation to the debt on a revolving loan account over which the loan finance charge is considered to exceed the maximum annual percentage rate; (3) strikes a provision specifying requirements for charging the same loan finance charge on all amounts financed within a range; (4) increases from $50 the maximum amount of a nonrefundable prepaid finance charge to $150 or $250; and (5) increases from two to three the number of nonrefundable prepaid finance charges a lender may assess in a 12 month period. Repeals provisions specific to supervised loans and applies certain supervised loan provisions to consumer loans having a loan finance charge exceeding 25%, including increasing the principal amounts on which the term of an installment payment period depends. Increases the amount that must be financed before a creditor can require property insurance. Makes conforming amendments.

Consumer credit. Repeals provisions specifying indexing of and changes of dollar amounts for purposes of consumer loans. Provides for a credit service charge not to exceed 36%. (Current law provides for variation in amount of a credit service charge based on the amount outstanding.) Increases the minimum credit service charge and consumer loan finance charge from $30 to $50. Increases from at least $300 to at least $1,500 the debt that must be secured for a seller in a consumer credit sale of goods to take a security interest in the goods. With respect to consumer loans: (1) increases from 25% to 36% the amount of a loan finance charge that a lender may charge; (2) increases from 2.083% to 3% the amount in relation to the debt on a revolving loan account over which the loan finance charge is considered to exceed the maximum annual percentage rate; (3) strikes a provision specifying requirements for charging the same loan finance charge on all amounts financed within a range; (4) increases from $50 the maximum amount of a nonrefundable prepaid finance charge to $150 or $250; and (5) increases from two to three the number of nonrefundable prepaid finance charges a lender may assess in a 12 month period. Repeals provisions specific to supervised loans and applies certain supervised loan provisions to consumer loans having a loan finance charge exceeding 25%, including increasing the principal amounts on which the term of an installment payment period depends. Increases the amount that must be financed before a creditor can require property insurance. Makes conforming amendments.

Sen. Andy Zay [R]

Sen. Mike Gaskill [R]

Date	Chamber	Action
2019-02-18	Senate	Senator Gaskill added as second author
2019-02-04	Senate	Senator Zay added as author
2019-02-04	Senate	Senator Messmer removed as author
2019-01-14	Senate	First reading: referred to Committee on Insurance and Financial Institutions
2019-01-14	Senate	Authored by Senator Messmer

Type	Source
Summary	https://iga.in.gov/legislative/2019/bills/senate/587/details
Text	http://iga.in.gov/static-documents/7/4/4/8/7448b228/SB0587.01.INTR.pdf