SB 352 IN

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Passed One Chamber

Amends the Uniform Consumer Credit Code to provide that the authorized loan finance charge for a consumer loan, other than a supervised loan, that is entered into after June 30, 2022, may not exceed 36% (versus 25% for a consumer loan that is entered into before July 1, 2022) per year on the unpaid balances of the principal. Amends the definition of "supervised loan" to mean a consumer loan that: (1) is entered into before July 1, 2022, and with respect to which the rate of the loan finance charge exceeds the authorized 25% annual rate for consumer loans under current law; or (2) is entered into after June 30, 2022, and is made in accordance with the requirements for supervised loans set forth in the bill. Sets forth requirements and limitations with respect to the following for supervised loans made after June 30, 2022: (1) Authorized fees and charges. (2) The maximum principal amount. (3) The minimum and maximum lengths of the loan term. (4) Information and disclosures to be included in the loan contract. (5) A borrower's right to rescind a supervised loan transaction. Provides that when a borrower enters into a supervised loan, the lender shall provide the borrower with a pamphlet approved by the department of financial institutions (department) that describes: (1) the availability of debt management and credit counseling services; (2) the borrower's rights and responsibilities; and (3) the availability of the 211 telephone dialing code for human services information and referrals. Sets forth prohibited acts and practices in connection with a supervised loan. Provides that a lender may not take a security interest in real or personal property in connection with a supervised loan, other than a security interest in a personal check of the borrower. Specifies the applicability of the bill's provisions to supervised loans made by persons exempt from: (1) the bill's finance charge limitations; and (2) licensure by the department. Requires a lender that makes at least one supervised loan in Indiana during a calendar year to remit to the department: (1) an annual fee of $250; and (2) an additional fee of $250 per Indiana branch location (after the first location). Establishes the consumer financial education fund (fund), and provides that the annual fees collected from lenders making supervised loans are to be deposited in the fund. Provides that the fund is to be: (1) administered by the department; and (2) used by the department for paying expenses relating to consumer financial education. Requires a person that enters into at least one supervised loan transaction in Indiana in any calendar year to file with the department a report concerning the person's business and operations with respect to that calendar year. Requires the director of the department to prescribe: (1) the time and manner for filing the report; and (2) the information to be included in the report. Requires the department to publish and make available to the public, at least annually, an analysis of the information provided in the reports filed with the department. Sets forth the information that must be included in the department's analysis. Makes conforming amendments to existing references to supervised loans throughout the Indiana Code.

• Andy Zay · author
• Mike Bohacek Republican · author
• Chris Judy Republican · sponsor

1. Jan 11, 2022 Authored by Senator Zay · upper
2. Jan 11, 2022 First reading: referred to Committee on Insurance and Financial Institutions · upper
3. Jan 20, 2022 Committee report: amend do pass, adopted · upper
4. Jan 20, 2022 Senator Bohacek added as coauthor · upper
5. Jan 24, 2022 Amendment #2 (Lanane) failed; Roll Call 39: yeas 14, nays 33 · upper
6. Jan 24, 2022 Second reading: ordered engrossed · upper
7. Jan 25, 2022 Third reading: failed for lack of constitutional majority; Roll Call 80: yeas 24, nays 22 · upper
8. Jan 25, 2022 Senator Bohacek removed as coauthor · upper
9. Jan 25, 2022 Senator Bohacek added as second author · upper
10. Jan 25, 2022 Senator Sandlin added as coauthor · upper
11. Feb 1, 2022 Reread third time: passed; Roll Call 136: yeas 27, nays 22 · upper
12. Feb 1, 2022 House sponsor: Representative Judy · upper
13. Feb 1, 2022 Cosponsors: Representatives Lehman and Carbaugh · upper
14. Feb 2, 2022 Referred to the House · upper
15. Feb 8, 2022 First reading: referred to Committee on Financial Institutions and Insurance · lower

The published texts of this bill as it moves through the legislature. Each links to the official document on the state legislature site. Data from OpenStates.

• Senate Bill (S) · Jan 20, 2022 · PDF
• Introduced Senate Bill (S) · Jan 10, 2022 · PDF