June 1996 -- Volume 13 Issue 3
State Law Changes
- Idaho - Effective: July 1, 1996 *** Law Type: Consumer Finance
- Indiana - Effective: July 1, 1996 *** Law Type: UCCC
- Ohio - Effective: June 13, 1996 *** Law Type: Mtg. Loan
- Oklahoma - Effective: July 1, 1996 *** Law Type: UCCC
- Tennessee - Effective: July 1, 1996 *** Law Type: Industrial Loan
- Texas - Effective: July 1, 1996 *** Law Type: Sales Finance/Regulated Loan
- Wyoming - Effective: July 1, 1996 *** Law Type: UCCC
Other items of interest...
State Law Changes...................
* IDAHO *
Effective: July 1, 1996 *** Law Type: Consumer Finance
The parties to a consumer credit transaction in Idaho may contract for a delinquency charge which is the greater of 5% of the payment due or $10. Payments not made in full within 15 days of the scheduled due date are subject to this charge. The current maximum is the greater of 5% of the payment due or $5.
* INDIANA *
Effective: July 1, 1996 *** Law Type: UCCC
The dollar amount brackets and ceilings relating to both consumer
loans and consumer credit sales subject to the Indiana Code will
increase to 300% of the base amounts. This most recent increase
is equivalent to 10% of the base amounts. The maximum rate
structure will reflect the changes as follows:
The greater of:
(A) 36% per annum of Amount Financed to $900 plus,
21% per annum of the excess to $3,000 plus,
15% per annum of the remainder
-or-
(B) 21% per annum Simple Interest
The maximum delinquency charge will increase to $15.00
* OHIO *
Effective: June 13, 1996 *** Law Type: Mtg. Loan
S.B. 189 amends sections of the Ohio Revised Code in order to make
revisions to the Ohio Mortgage Loan Law. The provisions regarding
loan origination charges have been amended and the maximum allowable
amounts are:
Original Principal Balance Maximum Origination Fee
less than $500 $15
$500 - $999.99 $30
$1,000 - $1,999.99 $65
$2,000 and greater Greater of:
a) $150
or
b) 1% of Principal
Origination fees may not be imposed on a borrower more frequently than once in any ninety-day period.
* OKLAHOMA *
Effective: July 1, 1996 *** Law Type: UCCC
The dollar amount brackets and ceilings relating to both
consumer loans and consumer credit sales subject to the Oklahoma
Code will increase to 320% of the base amounts. This most recent
increase is equivalent to 10% of the base amounts. The maximum
rate structure will reflect the changes as follows:
The greater of:
(A) 30% per annum of Amount Financed to $960 plus,
21% per annum of the excess to $3,200 plus,
15% per annum of the remainder
-or-
(B) 21% per annum Simple Interest
The maximum delinquency charge will increase to $16.00
* TENNESSEE *
Effective: July 1, 1996 *** Law Type: Industrial Loan
The maintenance fees an industrial loan and thrift company may
charge on a loan will increase on July 1, 1996. The new monthly
maximum allowable amounts are:
Total Amount of Loan Maximum Maintenance Fee
less than $100 $2.50/month
$100 - $750 $3.50/month
$750.01 - $1,250 $3.00/month
greater than $1,250 $2.50/month
* TEXAS *
Effective: July 1, 1996 *** Law Type: Sales Finance
The dollar amounts in the Texas Sales Finance rate structure will reflect an increase in the consumer price index.
The revised add-on rate structure is as follows:
12% per annum of Amount Financed to $2,200 plus, 10% per annum of the excess to $4,400 plus, 8% per annum of the remainder
Effective: July 1, 1996 *** Law Type: Regulated Loan
The dollar amounts in the Texas Regulated Loan rate structure will also reflect an increase in the consumer price index. The revised add-on rate structure is as follows:
18% per annum of Amount Financed to $1,320 plus, 8% per annum of the excess to $11,000
These adjustments reflect an increase to 440% of the original base amounts for both rate structures.
* WYOMING *
Effective: July 1, 1996 *** Law Type: UCCC
The Wyoming Uniform Consumer Credit Code has been revised affecting the maximum dollar amount subject to the code, maximum delinquency charges for both loans and sales, and the minimum finance charge provision for consumer loan. The highlights of the revision are:
Consumer Credit Sale
Maximum Amount - $50,000
Maximum Delinquency Charge - The greater of 5%
of the amount of the unpaid installment or $10.
Consumer Loan
Maximum Amount - $50,000
Maximum Delinquency Charge - $10
Minimum Loan Finance Charge - $30
Coming in September..........
The completion of our April research article "No Interest and the A.P.R." will appear in the September 1996 issue.
The CQ Generator gives your online system the same accurate consumer loan quoting capability as the printed rate charts and hand-held computers you have trusted from Carleton for over thirty years.
- Performs all your financial calculations
- Runs on your hardware
- Interfaces with your software
- Keeps you in compliance
Contact Ken Solnoky or Phil Hoose for more details on how the CQ Generator can easily perform all your loan quoting needs using your existing system software.
Distribution of this newsletter is made with the understanding that the information contained herein has not been certified as legally acceptable for any particular statute, law, or regulation. For more timely and detailed information, subscribe to our Consumer Finance Newsletter and/or The Cost of Personal Borrowing in the United States compliance guide which are both published and updated ten times a year.
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