Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Impact
The introduction of this bill is anticipated to have significant ramifications on existing state laws regarding consumer credit and financial services. By enforcing a specific limit on the APR for credit extensions, HB1350 aligns with other consumer protection measures aiming to enhance the financial safety of citizens. The bill would also impact credit access businesses by defining more transparent fee structures and requiring clear disclosure of charges, potentially leading to more informed consumer choices.
Summary
House Bill 1350 seeks to impose a cap on the total charges that can be applied to extensions of consumer credit by credit services organizations. Specifically, the bill stipulates that the annual percentage rate (APR) for consumer credit obtained through these organizations may not exceed 36 percent. This regulation is designed to protect consumers from excessively high fees and interest rates associated with credit services, aiming to promote fairer lending practices and reduce predatory financial behaviors.
Contention
While supporters of HB1350 argue that the bill serves as an essential measure to combat predatory lending and promote equitable access to credit, there may be opposition from some financial service providers and lobbyists. Critics might express concerns that imposing a cap on interest rates could limit the availability of credit options for consumers, particularly those with lower credit scores who may require these services. Thus, the bill is likely to prompt discussions on finding a balance between consumer protection and financial service viability.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Prohibits utility companies from limiting the eligibility of a net metering site based on prior consumption and requires excess energy not consumed under the net metering system to be credited to the consumer.
Requires entities that access a consumer's consumer credit report to notify such consumer of their right to obtain a security freeze, in addition to other information necessary to place, temporarily lift or permanently lift such security freeze; prohibits notices to consumers of their right to obtain a security freeze from containing advertising for paid services.