FEES/LICENSES/PERMITS: Changes fees charged by lenders
Summary
HB 545 amends Louisiana law governing lender fees by increasing the maximum origination fee a lender may charge on a consumer loan or revolving loan account from $50 to $75. The bill is narrow in scope and does not broadly rewrite lending law; it specifically updates R.S. 9:3530(A)(1) to allow a higher upfront fee at loan origination.
As introduced, the bill also contained provisions related to maximum loan finance charges for consumer loans, but those provisions were removed by the House Committee on Commerce. The final enacted version therefore focuses only on the origination-fee cap. The bill became law without the Governor’s signature as Act 402.
Impact
The bill directly amends R.S. 9:3530(A)(1), changing the statutory ceiling on origination fees for consumer loans and revolving loan accounts from $50 to $75. This affects lenders operating in Louisiana by allowing them to collect a higher upfront fee, and it may increase the cost of borrowing for consumers who take out covered loans or revolving accounts. No other lending charges are changed in the final version, because the committee removed the broader finance-charge language from the original bill.
Sentiment
The bill appears to have moved with little visible opposition. It passed the House on final passage by a vote of 92-0, indicating unanimous support among voting members. The lack of recorded committee testimony in the provided materials also suggests the measure was not highly contentious in the legislative process, at least in the available record.
Contention
The main point of contention was the scope of the bill. The original proposal included changes to maximum loan finance charges, but the House Committee on Commerce removed those provisions, leaving only the increase in the origination-fee cap. That amendment suggests some concern about expanding the bill beyond a single fee adjustment, even though the final measure ultimately passed unanimously. No specific opposing legislators, industry groups, or consumer advocates are identified in the provided materials.