ILLINOIS

Illinois Public Act 101-0031 provides that for sales and purchases of motor vehicles, the “selling price” includes the value of or credit given for a traded-in first division motor vehicle exceeding $10,000. While trade-in credit can exceed $10,000 to reduce the cost of the motor vehicle being purchased, for purposes of calculating Sales Tax or Use Tax due, the credit you can claim for a first division motor vehicle being traded in cannot exceed $10,000. Effective January 1, 2020.

MASSACHUSETTS

On December 4, 2019 the Massachusetts’s Office of the Consumer Affairs and Business Regulation released Bulletin 2019-09 which updated the credit life and credit accident and health rates for motor vehicle dealers. The credit life rates per one thousand dollars of insurance in force per month shall be $0.58 for single life and $0.92 for joint life. The single premium rates for each one hundred dollars of initial indebtedness shall be $0.44 for the first four years of coverage, $0.32 per annum for each of the next three years of term coverage, and $0.16 per annum for each year thereafter. Effective from January 1, 2020 – December 31, 2022. 

MICHIGAN

Signed into law on January 28, 2020, Michigan HB 4411 amends current statutes regarding credit services organizations. The new law details prohibited activities and requires certain disclosures to consumers receiving credit service organization services. Effective immediately.

NEW MEXICO

On December 30, 2019, the Office of Superintendent of Insurance (“OSI”) published Bulletin 2019-018 regarding the presumptively acceptable credit life and credit accident and health premium rates. These rates were scheduled to go into effect on January 1, 2020. Under New Mexico’s regulations, this regulatory change was not properly noticed or calculated correctly. The OSI is currently declining to take into consideration claim loss when calculating insurer’s loss ratio. The implementation of the new rates is now scheduled for April 1, 2020. Insurers can expect a 10% reduction of the prima facia rates for credit life and credit accident and health. Effective April 1, 2020.

NEW JERSEY

Signed on January 9, 2020, New Jersey SB 1712 requires new motor vehicle manufacturers, distributors, and factory branches to provide purchasers with a written statement summarizing vehicle warranty coverage for aftermarket and recycled parts. The statement is required within 90 days after the purchase or lease of a new motor vehicle. Effective immediately.

New Jersey SB 2998 was signed into law by Governor Phil Murphy on January 13. The law requires consumer lenders providing credit agreements that include lender-placed insurance to disclose the insurance. Creditors are also required to send a notice in the mail within 14 days of the placement of any such collateral protection insurance. Creditors that fail to provide these disclosures will be subject to fines of up to $25,000. The law will apply to any contract entered on or after the effective date. Effective April 12, 2020.

With SB 2252, the New Jersey legislature has supported the increased use of plug-in electric vehicles by providing incentives for the purchase or lease of such vehicles and charging equipment. The statute also aims to increase consumer awareness of the availability of incentives through a Statewide public education program. Effective immediately.

New Jersey SB 3206 establishes the “Unbanked and Underbanked Consumers Study Commission.” This Commission will evaluate how to create better access to financial services, review changes needed to address predatory banking practices, and examine the availability of banking locations in underserved areas, among other mandates. Effective immediately.

NEW YORK

New York SB 3631 amends the insurance law and increases the number of covered items under service contracts in order to protect New Yorkers leasing automobiles from unanticipated “lease-end” charges. Effective immediately.

RHODE ISLAND

Rhode Island updated the Documentary Preparation Fee motor vehicle dealers are allowed to collect within the state. 280 RICR 30-20-1 raises the minimum threshold of the vehicle purchase price on which a dealer may charge the Documentary Preparation Fee from $7,500 to $10,000. Additionally, the fee itself has now increased from $200 to $400. Effective January 19, 2020.

CONSUMER FINANCIAL PROTECTION BUREAU

On January 21, 2020, the CFPB published a new Policy Statement regarding Section 1031(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This Policy Statement seeks to give greater clarity regarding the meaning of abusive practices under the law. The Bureau wants to ensure that uncertainty surrounding the definition does not impede access to lawful financial products or services. The Policy Statement provides a framework for the exercise of supervisory and enforcement authority by the Bureau in regard to abusive acts or practices. Effective January 24, 2020.

Review of State Changes Effective in 2019

ARIZONA          

HB 2674 clarifies that Guaranteed Asset Protection Waivers are not insurance. Effective 90 days after sine die adjournment.

ARKANSAS

HB 1672 was approved by the Governor on April 8, 2019. The bill specifies that GAP waivers are not insurance. Effective July 23, 2019.

DELAWARE

House Bill 106 codifies existing legal practice which allows the Department of Justice to regulate service contracts and product warranties. Effective June 26, 2019.

FLORIDA

On August 15, 2019 Florida released credit life and disability rules. The new rates for credit disability changed for the first time in 10 years and appear to decrease as much as 20% from current rates. Effective August 15, 2019.

GEORGIA

SB 122 was signed on May 6, 2019. The bill addresses privacy requirements related to the purchase or lease of a motor vehicle. Effective July 1, 2019.

HAWAII

House Bill 154 clarifies the scope of motor vehicle service contracts subject to regulation by the Department of Insurance. Effective in part on July 1, 2019.

ILLINOIS

Senate Bill 1758 makes changes to the Consumer Installment Loan Act by defining “substantially equal installment payments.” Effective August 23, 2019.

INDIANA

The Department of State Revenue published Information Bulletin #28S regarding taxation of documentation fees in January 2019. Effective April 2, 2019.

HB 1136 amends the Indiana Uniform Consumer Credit Code and addresses the allowable delinquency charges. The bill applies to consumer credit sales (§24-4.5-2-203.5) and consumer loans (§24-4.5-3-203.5). Effective July 1, 2019.

HB 1237 became Public Law 245 on May 5, 2019. The bill creates a ceiling of $200 for a document preparation fee. The bill retroactively applies, effective July 1, 2013.

IOWA

HF 260 raises the threshold to a principal balance of $30,000 under the Superintendent’s authority to regulate the interest charge. Effective July 1, 2019.

The Governor signed SF 619 on May 16, 2019. The Act modifies provisions related to service contract providers. Effective May 16, 2019.

KANSAS

The Office of the State Bank Commissioner published an Administrative Interpretation regarding GAP waivers. Provisions effective on or after May 15, 2019.

KENTUCKY

House Bill 285 applies to consumer loan companies. Rates for supervised lending did not change, but HB 285 created a new loan processing fee. Effective 90 days after the adjournment of the legislative session.

Regulation 174143r places restrictions on deferred deposit transactions.

LOUISIANA

Louisiana HB 522 was signed by the Louisiana Governor on May 28, 2018. The Act relates to motor vehicle service contracts. Effective February 1, 2019.

MARYLAND

In 2018, Maryland established the Maryland Financial Consumer Protection Commission. The Commission ceased operations on June 30, 2019.

MASSACHUSETTS

HB 4086 was signed into law on January 10, 2019 and establishes and modifies certain laws regarding consumer financial and credit information.

MICHIGAN

On December 18, 2018, Governor Snyder approved HB 6498. The bill is known as the “Motor Vehicle Franchise Act.” Effective March 28, 2019.

MINNESOTA

The Minnesota Department of Commerce published guidance requiring that a company that purchases retail installment contracts from Minnesota dealers must hold a sales finance company license. Effective for contracts executed after July 1, 2019.

MISSISSSIPI

House Bill 925 revises the definition of a vehicle service contract and defines road hazards subject to those contracts. Effective July 1, 2019.

NEVADA

SB 201 aligns the state code with the federal Military Lending Act. Effective October 1, 2019, with other portions of the bill effective July 1, 2019 or July 1, 2020.

NEW JERSEY

Senate Bill 2994 requires GAP waivers to be cancellable and requires a pro rata refund of the purchase price. Effective October 17, 2019.

NEW MEXICO

HB 6 was signed by the Governor on April 4, 2019. Among other tax-related provisions, the bill increases the rate of the motor vehicle excise tax. Effective July 1, 2019.

HB 150 became law on April 3, 2019. The bill applies to installment loans covered by the Installment Loan Act and the Small Loan Act. Effective July 1, 2019.

SB 350 was signed by the Governor on April 4, 2019. The bill amends definitions related to service contracts. Effective 90 days after adjournment of the legislature.

NEW YORK

NY SB 4019 requires that a retail lessee shall not be financially liable for charges because he or she has passed away before the lease’s conclusion. Passed September 5, 2019.

NY AB 7080 amended current law to include keys or key fobs as falling under the definition of items covered under Service Contracts. Effective September 6, 2019

NORTH CAROLINA

SB 162 modifies the origination fee for a loan or extension of credit not secured by real property. The bill states that a specific loan with a principal amount of less than $5,000, the APR shall not exceed 36%, inclusive of fees. Effective April 1, 2019.

Senate Bill 385 was enacted on July 26, 2019. The law primarily concerns motor vehicle dealer licensing requirements. Effective July 26, 2019

North Carolina Servicemembers Civil Relief Act codifies into state law many provisions of the federal Servicemembers Civil Relief Act. Effective July 25, 2019

On July 5, 2019, Senate Bill 529 became law in North Carolina. This legislation changes the processing fee for a returned check from $25 to $35. Effective October 1, 2019.

NORTH DAKOTA

House Bill 1181 codifies that GAP Waiver agreements can be sold in North Dakota and are exempt from insurance laws. Effective March 21, 2019.

HB 1195 creates contract requirements applicable to service contract providers. Effective on contracts entered into after July 31, 2019.

HB 1292 amends the definition of “purchase price” as it relates to the application of sales or use tax. Effective July 1, 2019.

OKLAHOMA

The Department of Consumer Credit published dollar bracket adjustments for Retail Installment Sales under § 2-201. For loans subject to § 3-508(A), rates remain the same and the § 3-508(B) rates and brackets were updated on July1, 2019.

PENNSYLVANIA

The Pennsylvania Dept. of Banking and Securities released a comment letter clarifying the conditions for the offer of a GAP product. Effective January 31, 2019.

TEXAS

HB 3855 affects consumer loans made under Section 342.201 of the Finance Code. Effective September 1, 2019.

Effective July 1, 2019, the dollar brackets and ceilings subject to adjustment in the Texas Financial Code will increase for Consumer Loans and Retail Installment Sales.

UTAH

Governor Gary Herbert signed House Bill 378 on March 25, 2019 creating a financial technology regulatory sandbox. Enacted March 25, 2019.

VIRGINIA

House Bill 2600 was signed on March 8, 2019. The bill is meant to crack down on unsolicited telemarketing calls. Effective July 1, 2019.

Signed by the governor on March 26, 2019, a new law applies to GAP Waivers which are legal agreements and not considered insurance. Effective July 1, 2019.

SB 1325 establishes requirements for offering GAP Waivers and includes provisions relating to disclosures, cancellation, and refunds. Effective July 1, 2019.

WASHINGTON D.C.

The Washington D.C. City Council passed a bill which establishes rules for the administration and regulation of service contracts. Effective May 22, 2019.

WEST VIRGINIA

House Bill 3143 alters the rate structure of regulated consumer lenders under the Consumer Credit and Protection Act. Effective July 1, 2019.

Review of State Changes Effective in 2020

CALIFORNIA

AB 539 amends the California Financing Law. Once this bill goes into effect, a loan with a principal amount of $2,500 to $10,000 may receive charge on a rate not exceeding 36% plus the Federal Funds Rate. Effective January 1, 2020.

California’s governor signed a series of amendments to the California Consumer Privacy Act on October 11, 2019. Effective January 1, 2020.

On June 8, 2019, California published the fee adjustments to the Vehicle Code under 13 CA ADC § 423.00. Effective January 1, 2020.

HAWAII

Senate Bill 409 establishes an annual registration surcharge of $50.00 for electric and alternative fuel vehicles. Effective January 1, 2020.

ILLINOIS

The State of Illinois has adjusted its document preparation fee for the year 2020 to $300.00. Effective January 1, 2020.

The Payday Loan Reform Act allows an Illinois lender to charge a $3 fee for verifying a borrower’s information. Effective July 1, 2020.

Senate Bill 1624 made changes to the Personal Information Protection Act by putting in place new reporting requirements. Effective January 1, 2020.

NEW YORK

On July 25, 2019 Governor Andrew Cuomo signed the SHIELD Act amending New York’s current data breach notification law. Effective March 21, 2020.

OHIO

The Ohio Department of Insurance has issued a memorandum revising prima facie credit insurance rates effective January 1, 2020.

OKLAHOMA

SB 720 creates the Oklahoma Small Lenders Act. The bill creates a new license for “small lenders,” beginning on January 1, 2020.

RHODE ISLAND

House Bill 5674 defines service contracts and clarifies that service contracts are not insurance and not subject to the insurance code. Effective January 1, 2020.

SOUTH CAROLINA

The South Carolina Dept. of Insurance published orders 2019-04, 2019-05, and 2019-06 confirming Prima Facie Credit A&H and Property rates. Effective January 1, 2020.

WYOMING

Wyoming’s Governor Mark Gordon signed HB 57 on February 19, 2019. This bill creates a financial technology sandbox. Effective January 1, 2020.

ANNUAL TILA THRESHOLD EXEMPTION

The CFPB published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For 2020 the exemption threshold amount for Regulation M and Z is increased from $57,200 to $58,300. Effective January 1, 2020.

HOEPA and ATR/QM

Specific dollar threshold adjustments were announced on August 1, 2019 through the Consumer Protection Financial Bureau. HOEPA Annual Threshold Adjustments will be $21,980, up from $21,549. The adjusted points and fees trigger will be $1,099, up from $1,077. The ATR/QM Threshold Adjustments were also reported in our newsletter:

• 8% of total loan amount for loans less than $13,737
• $1,099 for loans greater than or equal to $13,737 but less than $21,980
• 5% of total loan amount for loans greater than or equal to $21,980 but less than $65,939
• $3,297 for loans greater than or equal to $65,939 but less than $109,898

Effective January 1, 2020.

Effective State Changes 

ILLINOIS

The document preparation fee or “doc fee” has been increased for 2020 to $300. Effective January 1, 2020.

CFPB ANNUAL REGULATION M & Z ADJUSTMENTS

The CFPB published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For 2020 the exemption threshold amount for Regulation M and Z is increased from $57,200 to $58,300. Effective January 1, 2020.

PAYDAY, VEHICLE TITLE, AND CERTAIN HIGH-COST INSTALLMENT LOANS

The CFPB issued a final rule to delay the August 2019 compliance date for certain provisions of the Payday, Vehicle Title, and Certain High-Cost Installment Loans. Compliance for the mandatory underwriting provisions is now delayed until November 19, 2020. Effective August 16, 2019.

CALIFORNIA

On October 10, 2019 California governor Gavin Newsome signed AB 539 into law. This statute amends the California Financing Law. Once this bill goes into effect, a loan with a principal amount of $2,500 to $10,000 may receive charge on a rate not exceeding 36% plus the Federal Funds Rate. Existing law has no rate cap for loans in this range. The law also allows a licensee to contract for an administrative fee. The law also includes provisions relating to term limits, reporting requirements, and open-end loan requirements. Effective in part January 1, 2020 and January 1, 2021.

Governor Newsome signed AB 179 into law on October 12, 2019. This bill allows the New Motor Vehicle Board in the Department of Motor Vehicles to hear protests and appeals of their rulings, policies and decisions affecting manufacturers, distributors, and the public. Effective January 1, 2020.

The governor approved of AB 1146 on October 11, 2019. This bill alters the California Consumer Privacy Act of 2018 and exempts certain data sharing from its provisions. The law allows for a new motor vehicle dealer and the vehicle’s manufacturer to share certain information regarding vehicle ownership. The information must be used in relation to or in anticipation of a vehicle repair under warranty or recall. Effective in part January 1, 2020.

California’s governor also signed a series of amendments to the California Consumer Privacy Act on October 11, 2019. The following amendments were signed into law AB 1355 (clarifying amendments and exemptions),  AB 1202 (data broker registration), AB 25 (employee exemption), AB 1564 (consumer request for disclosure methods), AB 874 (publicly available information), and AB 1130 (data breach notification). Effective January 1, 2020.

NEW YORK

The State of New York adopted regulations on October 1, 2016 in regard to the regulating of student loan servicers. Effective October 16, 2019.

OKLAHOMA

In our April Newsletter, we reported on the annual bracket adjustments published in a Bulletin from the Oklahoma Department of Consumer Credit. In our May Newsletter, we cited SB 732, which modified the charges allowed for loans made pursuant to § 3-508B by adding two additional tiers. The Oklahoma Department of Consumer Credit released updated bracket adjustments to align with the new tiers in SB 732. The adjusted tiers are as follows:

Loan Amount	Acquisition Charge	Handling Charge
Up to $155.95		$5.20 per $26.00 of principal
$155.96-$182.00	1/10 of the amount of principal	$15.60 per month
$182.01-$364.00	1/10 of the amount of principal	$18.20 per month
$364.01-$520.00	1/10 of the amount of principal	$20.80 per month
$520.01-$780.00	1/10 of the amount of principal	$23.40 per month
$780.01-$1,040.00	1/10 of the amount of principal	$26.00 per month
$1,040.01-$1,300.00	1/10 of the amount of principal	$28.60 per month
$1,300.01-$1,560.00	1/10 of the amount of principal	$31.20 per month

Effective November 1, 2019.

OKLAHOMA

SB 720 creates a new license for “small lenders,” beginning on January 1, 2020. Under the new Oklahoma Small Lenders Act, a “small loan” is an unsecured loan that’s term is between 60 days and 12 months. Effective November 1, 2019.

FLORIDA

On August 15, 2019 Florida released credit life and disability rules 690-163.009 and 690-163.011. The new rates for credit disability changed for the first time in 10 years and appear to decrease as much as 20% from current rates. Additionally, a new rule was implemented regarding rate deviation requests. The Consumer Credit Industry Association (“CCIA”), a lobbying and advocacy group for credit insurance institutions, asked the Florida Office of Insurance Regulation (“FOIR”) for the date when the new rates were to be implemented. Although the FOIR provided no “effective date”, CCIA has counseled its members and believes the prudent course is for insurance companies to file for the new prima facie rates in an expeditious manner.

ILLINOIS

Governor John Carney signed Senate Bill 1758 into law on August 23, 2019. This bill makes changes to the Consumer Installment Loan Act by defining “substantially equal installment” as “a last regularly scheduled payment that may be less than, but not more than 5% larger than the previous scheduled payments…” Effective immediately.

Senate Bill 1624 was signed into law on July 9, 2019. The act made changes to the Personal Information Protection Act by putting in place new reporting requirements following a breach of personal information that affects 500 or more residents of the State of Illinois. Effective January 1, 2020.

NEW HAMPSHIRE

New Hampshire enacted Senate Bill 194 on August 2, 2019 which created a new Insurance Data Security Law. Effective January 1, 2020.

NEW JERSEY

Assembly Bill 4420 became law on August 8, 2019. It modifies certain fees charged by check casher licensees. Check Cashers may charge a fee of up to 3% of the face amount of the check on checks that are payable to an entity or are in excess of $2,500. Effective immediately.

Senate Bill 1149 created an Office of the Student Loan Ombudsman within the New Jersey Department of Banking and Insurance. This bill regulates student loan servicers and requires those entities to register with the National Mortgage Licensing System and Registry. Effective 120 days after enactment.

NEW YORK

On July 25, 2019 Governor Andrew Cuomo signed the SHIELD Act (SB5575) into law. The “Stop Hacks and Improve Electronic Data Security Act” amends New York’s current data breach notification law by imposing more expansive data security and data breach notification requirements. Effective March 21, 2020.

Governor Andrew Cuomo signed NY SB 4019 on September 5, 2019. The bill requires that a retail lessee shall not be financially liable for charges when the early termination of a motor vehicle retail lease agreement occurs because he or she has passed away before the lease’s conclusion.

NY AB 7080 amended current law to include keys or key fobs as falling under the definition of items covered under Service Contracts for motor vehicle repairs. Effective immediately.

NORTH CAROLINA

Senate Bill 385 was signed by Governor Roy Cooper on July 26, 2019. The law primarily concerns motor vehicle dealer licensing requirements and fees and referral requirements. Additionally, the bill establishes that a motor vehicle dealer that does not market or extend to a covered borrower a loan or credit transaction covered by specified federal law is not in violation of North Carolina state law (which prohibits private discrimination against military personnel). This provision is retroactively extended by law to October 3, 2016. This bill defines a “covered borrower” by cross-reference to federal law. Effective July 26, 2019.

On July 25, 2019 Senate Bill 420 was approved by the governor. The North Carolina Servicemembers Civil Relief Act codifies into state law many provisions of the federal Servicemembers Civil Relief Act. Additionally, servicemembers may terminate some service contracts when called into duty and may have the extension of certain lease agreements based on that status. Effective July 25, 2019.

OHIO

The Ohio Department of Insurance has issued a memorandum revising prima facie credit insurance rates effective January 1, 2020. Credit Life rates remain unchanged for 12 months at $0.627 per $1000 per month. The Credit Disability rates will decrease 9.7%. for 12 months at $1.19 per $100 for the 14-day retroactive plan

Credit Life Premium Rates

Single Decreasing Life Coverage                                       $0.41/$100/ @ 12 Months

Single Level Life Coverage                                                  $0.75/$100/ @ 12 Months

Joint Decreasing Life Coverage                                         $0.71/$100/ @ 12 Months

Joint Level Life Coverage                                                    $1.31/$100/ @ 12 Months

*Joint life rates are 175% of corresponding single life rates.

Credit Disability Rates

14-Day Retroactive                               $1.20 per month per $100 of coverage @ 12 Months

14-Day Elimination                               $1.04 per month per $100 of coverage @ 12 Months

30-Day Retroactive                               $0.90 per month per $100 of coverage @ 12 Months

30-Day Elimination                               $0.63 per month per $100 of coverage @ 12 Months

RHODE ISLAND

Following a national trend, Rhode Island has enacted a Student Loan Bill of Rights. House Bill 5936 gives guidance to the Attorney General’s Consumer Protection Unit and other entities to review complaints of student loan borrowers. Additionally, it sets out the duties and responsibilities of loan servicers. Effective immediately.

SOUTH CAROLINA

On September 13, 2019, the South Carolina Department of Insurance published orders 2019-04, 2019-05, and 2019-06 confirming Prima Facie Credit A&H and Credit Property rates for 2020. The A&H rates for insurance sold in conjunction with consumer credit transactions in 2020 will remain unchanged from their current rates in 2019. The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

• 14-day Retro: $1.53
• 30-day Retro: $1.44

Pursuant to Order 2019-04, the 3-day retroactive A&H rate for insurance sold in conjunction with loans will remain at $0.28 per $5.00 of monthly indemnity. Effective January 1, 2020.

CONSUMER FINANCIAL PROTECTION BUREAU

Specific dollar threshold adjustments were announced on August 1, 2019 through the Consumer Protection Financial Bureau. The CPFB is required to make adjustments to dollar thresholds based on annual changes in the Consumer Price Index. Updates to the Ability to Repay/ Qualified Mortgage Rule, (“ATR/QM”) and Home Ownership Equity Protection Act (“HOEPA”), among others, were announced and become effective January 1, 2020.

HOEPA Annual Threshold Adjustments:

• The adjusted total amount of the loan threshold will be $21,980, up from $21,549
• The adjusted points and fees trigger will be $1,099, up from $1,077

ATR/QM Threshold Adjustments – To meet qualified mortgage criteria, the combined points and fees can’t exceed the following:

• 8% of total loan amount for loans less than $13,737
• $1,099 for loans greater than or equal to $13,737 but less than $21,980
• 5% of total loan amount for loans greater than or equal to $21,980 but less than $65,939
• $3,297 for loans greater than or equal to $65,939 but less than $109,898
• 3% of total loan amount for loans greater than or equal to $109,898

NEW JERSEY

Governor Phil Murphy signed Senate Bill 2994 on July 19. The act requires GAP waivers to be cancellable and requires a pro rata refund of the purchase price following the cancellation of such waiver. Effective October 17, 2019.

NORTH CAROLINA

On July 5, 2019, Senate Bill 529 became law in North Carolina. This legislation changes the processing fee for a returned check from $25 to $35. Effective October 1, 2019.

TEXAS

HB 3855 affects consumer loans made under Section 342.201 of the Finance Code. The bill adds language that interest must be charged using the scheduled installment earnings method or the true daily earnings method.  Effective September 1, 2019.

Effective State Changes

DELAWARE

Governor John Carney signed House Bill 106 into law on June 26, 2019. This bill codifies existing legal practice allowing the Department of Justice to regulate service contracts and product warranties. These contracts and products are not regulated like insurance products. The Department of Justice began regulating these markets following a letter issued by the Department of Insurance in 1993 and Domestic/Foreign Insurers Bulletin No. 5 in 1997. Effective immediately.

HAWAII

On June 26, 2019 Governor David Ige signed House Bill 154 into law. The legislation clarifies the scope of motor vehicle service contracts subject to regulation by the Department of Insurance. Services specifically allowed in this bill include the repair or replacement of tires following contact with road hazards, the use of paintless dent removal services, windshield replacement from road hazard damage, and the replacement of key-fobs. Effective in part on July 1, 2019.

Senate Bill 409 was signed into law by the governor on July 10, 2019. The bill establishes an annual registration surcharge of $50.00 for electric and alternative fuel vehicles. Effective January 1, 2020.

MAINE

Senate Bill 995 was signed by the governor on June 20, 2019. This bill establishes a Student Loan Bill of Rights and regulates student loan servicers. Additionally, the bill institutes a licensing procedure for servicers, complete with a background investigation. Effective January 1, 2020.

NEW JERSEY

Governor Phil Murphy signed Senate Bill 2994 on July 19. The act requires GAP waivers to be cancellable and requires a pro rata refund of the purchase price following the cancellation of such waiver. A fee no greater than $50 may be deducted from the refund. The law also requires any refund due from early termination to be received within 60 days of termination or the receipt of such termination. Effective October 17, 2019.

NORTH CAROLINA

On July 5, 2019, Senate Bill 529 became law in North Carolina. This legislation changes the processing fee for a returned check from $25 to $35. Effective October 1, 2019.

RHODE ISLAND

House Bill 5674 was signed July 15, 2019 by Governor Gina Raimondo. This act would define service contracts and clarify that service contracts are not insurance and not subject to the insurance code. This legislation defines service contracts and details numerous items which are subject to removal, replacement, or repair. Effective January 1, 2020.

TEXAS

House Bill 4390 was signed into law on June 14, 2019 by Governor Greg Abbott. This legislation increases the requirements following a computerized-data breach of sensitive personal information. The bill inserts a 60-day limit to notify the Attorney General of said breach and details the information which must be included in the notification. Effective January 1, 2020.

VERMONT

Senate Bill 18 / Act 74 became law in Vermont without the Governor’s signature on June 19, 2019. The law is entitled the “Model State Consumer Justice Enforcement Act” and lists out numerous terms which are prohibited in standard-form contracts. Unconscionable terms include a waiver to an individual’s right to a jury trial, a waiver of an individual’s right to seek punitive damages, and any requirement that resolution of legal claims must take place in an “inconvenient venue.” Additionally, this legislation provides for damages, attorney’s fees, and a reasonable cost reimbursement if the drafting party includes any of these unconscionable provisions in a standard-form contract and a court determines an unfair and deceptive practice has been committed. Effective October 1, 2020.

Effective State Changes

ARKANSAS

On April 8, 2019 the Governor signed HB 1672 (Act 787), creating the Guaranteed Asset Protector Waivers subchapter of the Arkansas Code (“GAP Waiver Law”). The Law regulates the sale of GAP waivers in vehicle transactions. It outlines the various requirements and definitions related to the sale of GAP waivers. Motor vehicles are broadly defined to include “a self-propelled or towed vehicle designed for personal or commercial use.” This includes motorcycles, RV’s, boats, etc. Effective July 23, 2019.

CALIFORNIA

California is one of the states that has recently instituted regulations for licensing and operational requirements for student loan servicers. These new requirements instituted by the Department of Business Oversight went into effect on March 28. Under the new requirements, all student loan servicers must now register under the state’s registry system. Effective March 28, 2019.

On June 8, 2019, California published the fee adjustments to the Vehicle Code under 13 CA ADC § 423.00. These fee adjustments affect, among other fees: processing, registration and title fees. Effective January 1, 2020.

COLORADO

HB 1289 was signed by the Governor on May 23, 2019. The bill amends the definition of “unfair or deceptive trade practices” and modifies the allowable penalty for a violation of Article 1 of the Colorado Revised Statutes (up to $20,000 for a single violation; removing the $500,000 cap for related series of violations). Effective May 23, 2019.

SB 2 enacts Article 20 – the Colorado Student Loan Servicers Act. The Act regulates Student Loan Servicers. A license is required for Student Loan Servicers beginning on January 31, 2020. The Act addresses licensing requirements and prohibited acts of licensees. Effective August 2, 2019.

GEORGIA

SB 122 was signed by the Georgia Governor on May 6, 2019. The bill addresses privacy requirements related to the purchase or lease of a motor vehicle. It includes certain safeguards, notice requirements, and record retention requirements. The bill limits the use of consumer data. Unrelated to privacy requirements, the bill also addresses uniform warranty reimbursement policies among dealers and unlawful activities by franchisors. Effective July 1, 2019.

IOWA

The Governor signed SF 619 on May 16, 2019. The Act modifies provisions related to service contract providers. The bill provides a definition for a “motor vehicle service contract,” listing specified types of services and products. It also clarifies certain licensing requirements. The bill amends and replaces the contract form requirements for service contracts. Effective May 16, 2019.

KANSAS

On April 30, 2019, the Office of the State Bank Commissioner published Amended Administrative Interpretation No. 1004 regarding Guaranteed Asset Protection waiver agreements. The interpretation provided certain guidelines for excluding the cost of GAP waiver agreements from the calculation of the finance charge under the UCCC. If the guidelines are not followed, the cost of GAP products must be included in the finance charge and disclosed accordingly. The interpretation exclusively applies to finance agreements for a consumer vehicle. Effective on GAP waiver agreements executed on or after May 15, 2019.

KENTUCKY

Regulation 174143r places restrictions on deferred deposit transactions. Included in these restrictions are limitations that licensees can only have two deferred deposit transactions from an individual customer at one time and the total proceeds received from a customer cannot exceed $500. The regulation also requires the commissioner to implement a common database for licensees to access and verify deferred deposit transactions.

MARYLAND

Like California and Colorado, Maryland modified its laws relating to Student Loan Servicers under HB 594. Effective October 1, 2019.

NEVADA

AB 477 adds a new chapter to the code entitled “Consumer Protection from the Accrual of Predatory Interest After Default Act.” The Act voids choice-of-law provisions selecting other state jurisdictions for contracts entered into while the consumer resides in Nevada. Enforcement of the contract must be governed by Nevada. Similarly, forum selection clauses are void. The Act adds additional contract provision requirements and restrictions. And it specifies allowable pre-judgment and post-judgment interest. Effective October 1, 2019.

SB 161 establishes a “Regulatory Experimentation Program for Product Innovation” which provides temporary exemptions from some statutory and regulatory requirements related to financial products and services. To participate in the program, the act requires, among other things: a written application, establishment of a physical or virtual location, and a description of how the product or services is innovative. Absent special permission, participants cannot receive or transmit more than $2,500 in any single transaction, or more than $25,000 in any series of transactions. The bill also revises provisions relating to lenders who loan exclusively over the internet. Effective January 1, 2020.

SB 201 adopts certain provisions to align the state code with the federal Military Lending Act. Included in these provisions is the limitation against a lender charging an APR greater than 36%. It also requires specified disclosures and prohibitions on additional loan terms. Effective October 1, 2019, with other portions of the bill effective July 1, 2019 or July 1, 2020.

NEW JERSEY

S52 was approved by the Governor on May 10, 2019. The bill adds additional items to the definition of “personal information” for the purpose of security breaches. The new definition includes user names and email addresses. The bill adds notification requirements specifically related to breaches of security involving user names or passwords. Effective September 1, 2019.

OREGON

HB 2089 affects title loan lenders and payday loan lenders. The bill adds a new restriction that a lender cannot make a loan to a consumer who has not fully repaid an outstanding payday or title loan. Effective on the 91^st day following adjournment sine die.

SB 366 was signed by the Governor on May 24. The bill repeals the sunset provision in Section 11 of Chapter 523, which specifies requirements for GAP waivers. The GAP waiver provisions now are still in effect. Effective January 1, 2020.

SB 684 amends data breach notification requirements related to third-party vendors. The bill expands the definition of “Covered Entity” but states this does not include a person acting solely as a vendor. A “Vendor” is defined separately. Under the bill, there are data breach requirements that specifically apply to vendors, including notification provisions. The bill also includes a user name or other identifying data in the definition of “Personal information.” Effective January 1, 2020.

TEXAS

HB 3855 affects consumer loans made under Section 342.201 of the Finance Code. The bill adds language that interest must be charged using the scheduled installment earnings method or the true daily earnings method by either “(1) applying the applicable daily rate to each part of the unpaid principal balance corresponding to the brackets described by Subsection (e) for the actual or scheduled number of days during a payment period; or (2) applying a single equivalent daily rate to the unpaid principal balance for the actual or scheduled number of days during a payment period, where the single equivalent daily rate is determined at the inception of the loan using the scheduled installment earnings method and would earn an amount of interest authorized under Subsection (e) if the debt were paid to maturity according to the schedule of payments.” Effective September 1, 2019.

 

Reminders

INDIANA

HB 1136 / SB 80 amended the Indiana UCCC by modifying the allowable delinquency charge for consumer credit sales and consumer loans based on the payment frequency. The bill also modifies the allowable transaction fees for a revolving loan account. Effective July 1, 2019.

IOWA

HF 260 updated the threshold for the regulation of consumer loans, increasing the threshold from $10,000 to $30,000. Effective July 1, 2019.

KENTUCKY

HB 285 created new licensing requirements for licensing consumer loan companies. The bill also replaced a credit investigation fee with a loan processing fee. Effective June 27, 2019.

SB 145 was signed on March 19, 2019. This bill creates two distinct licenses for check cashing and deferred deposit services. Effective June 27, 2019.

OKLAHOMA

The Department of Consumer Credit published its dollar bracket adjustments for Retail Installment Sales and Consumer Loans. Effective July 1, 2019.

TEXAS

Texas published its dollar brackets and ceilings subject to adjustment for Retail Installment Sales and Consumer Loans. Effective July 1, 2019.

UTAH

HB 95 increased the collection costs for a dishonored check from $20 to $35. Effective May 14, 2019.

WEST VIRGINIA

HB 3143 altered the rate structure of regulated consumer lenders under the West Virginia Consumer Credit and Protection Act, modifying the limits from $2,000 to $3,500 and $10,000 to $15,000. Effective Date June 7, 2019.

HB 2674 was signed by the Governor on April 22, 2019. The bill clarifies that Guaranteed Asset Protection Waivers are not insurance and provides a definition of Guarantee Asset Protection Waivers. Effective 90 days after sine die adjournment.

INDIANA

HB 1136 was signed by the Governor on May 6, 2019. The bill amends the Indiana Uniform Consumer Credit Code and addresses the allowable delinquency charge. The bill applies to consumer credit sales (§24-4.5-2-203.5) and consumer loans (§24-4.5-3-203.5). It changes the permitted delinquency charge from an adjustable amount to a set amount, depending on the transaction’s payment frequency. Delinquent payments are payments that are not paid within 10 days after the scheduled due date. Under the bill, the allowable delinquency charges are:

• $5, if installments are due every 14 days or less
• $25, if installments are due every 15 days or more; or
• $25, on a single installment due at least 30 days after the sale or loan is made.

The bill adds a provision that states a creditor may not charge a delinquency charge if the only delinquency is attributable to a delinquency charge assessed on an earlier installment.

The bill also modifies the allowable transaction fees for a revolving loan account, stating the fee may not exceed the greater (previously the “lesser”) of 2% of the amount of the transaction or $10. SB 80 similarly changes the language to “the greater of.” Effective July 1, 2019.

HB 1237 became Public Law 245 on May 5, 2019. The bill retroactively creates a ceiling of $200 for a “fair” document preparation fee. The bill retroactively applies, effective July 1, 2013.

MARYLAND

HB 1154 and SB 693 modify the Maryland Personal Information Protection Act. The Act creates security breach investigation and notification requirements. Effective October 1, 2019.

NEW YORK

On April 29, 2019, the Department of Financial Services announced the appointment of Katherine A. Lemire to its newly created Consumer Protection and Financial Enforcement Division (also known as the “mini-CFPB”).

OKLAHOMA

SB 720 creates the Oklahoma Small Lenders Act. The bill creates a new license for “small lenders,” beginning on January 1, 2020. The bill terminates all Deferred Deposit Lending Act licenses, effective August 1, 2020. Under the new Oklahoma Small Lenders Act, a “small loan” is an unsecured loan that’s term is between 60 days and 12 months. To make a small loan, the lender must be licensed by the Department of Consumer Credit, beginning on August 1, 2020. The act specifies the applicable license requirements. It also creates disclosure requirements, including that each customer must be given a written explanation, in clear, understandable language, of the fees and charges to be charged by the licensee. Effective November 1, 2019.

SB 732 was signed by the Governor on April 25, 2019. The bill modifies the charges allowed for loans made pursuant to § 3-508B, as follows:

Loan Amount*                  Acquisition Charge                                    Handling Charge

Up to $29.99                     1/10 of the amount of principal              $1.00 per $5.00 of principal

$30.00-$35.00                 1/10 of the amount of principal              $3.00 per month

$35.01-$70.00                  1/10 of the amount of principal              $3.50 per month

$70.01-$100.00                1/10 of the amount of principal              $4.00 per month

$100.01-$150.00              1/10 of the amount of principal              $4.50 per month

$150.01-$200.00             1/10 of the amount of principal              $5.00 per month

$200.01-$250.00            1/10 of the amount of principal              $5.50 per month

$250.01-$300.00            1/10 of the amount of principal              $6.00 per month

Effective November 1, 2019.

*Note: The Loan Amounts are as listed in the Code, but these are subject to the annual changes in dollar amounts by the Oklahoma Department of Consumer Credit. We reported the 2019 dollar adjustments in the April newsletter.  At the moment, there does not appear to be alignment between the provisions of this bill and the 2019 bracket adjustments.

TEXAS

The dollar amount brackets and ceilings subject to adjustment in the Texas Financial Code will increase as follows:

Consumer Loans – §342.201

(Add-On Rates)

$18 per $100 per annum of the cash advance to $2,130 plus,

$  8 per $100 per annum of the excess to $17,750

OR

(Simple Melded Rates)

30% per annum of the cash advance to $3,550 plus,

24% of the excess to $7,455 plus,

18% of the remainder to $17,750

Retail Installment Sales (“Other Goods”) – §345.055

$12 per $100 per annum of the principal balance to $3,550 plus,

$10 per $100 per annum of the excess to $7,100 plus,

$  8 per $100 per annum of the remainder.

Effective July 1, 2019.

WASHINGTON

HB 1071 regulates breaches of security systems that protect personal information. The bill adds new definitions relating to the “breach of the security of the system.” The bill amends certain notice requirements for breaches of particular types of data, such as username and password. The act also provides the specific information which must be included in a notice of a potential breach to the attorney general. Notice to consumers must be provided within 30 calendar days of when the breach was discovered (changed from 45 days). The bill identifies what constitutes compliance with the security requirements based on the type of institution (e.g. a financial institution as certain criteria). Effective March 1, 2020.

Effective State Changes

ARIZONA

HB 2177 was signed on April 1, 2019. It modifies the Arizona Regulatory Sandbox Program. Effective 90 days after adjournment.

HB 2418, approved on April 9, 2019, adds a provision to the Arizona Code requiring dealers to follow certain data protection requirements. Under the bill, dealers may submit or push data to manufacturers or third parties but may not allow these parties access to their dealer data system. The bill further restricts what a manufacturer or third party may do with the data they receive from a dealer. Effective 90 days after adjournment.

ARKANSAS

HB 1672 was approved by the Governor on April 8, 2019. The bill specifies that GAP waivers are not insurance. The bill includes definitions related to GAP waivers, requirements for offering GAP waivers, required disclosures, and cancellation requirements. Effective 90 days after adjournment.

SB 494 was approved on March 20, 2019 and establishes a $10 processing fee for the use of an expedited title processing service. Effective 90 days after adjournment.

IDAHO

HB 86 adds a sales tax exemption on a motor vehicle dealer’s labor or service charges when installing accessories to new factory-delivered vehicles. Effective July 1, 2019.

IOWA

HF 260 was signed by the Governor on April 15, 2019. Under the Act, the threshold for the superintendent to establish the maximum rate of interest charges on consumer loans increases to an unpaid principal balance of $30,000 (up from $10,000). The act also includes a restriction on the collection of a minimum charge upon prepayment when the creditor has collected a service charge. Effective July 1, 2019.

INDIANA

The Department of State Revenue published Information Bulletin #28S regarding taxation of documentation fees in January 2019. Specifically, the bulletin states that “fees that meet the definition of a separately stated ‘convenience fee’ are not subject to sales tax.” But dealers may still charge a separate documentation fee, in addition to the convenience fee, which will be subject to sales tax. Effective April 2, 2019.

MARYLAND

In 2018, Maryland established the Maryland Financial Consumer Protection Commission. Because the legislature failed to reauthorize the commission, it will sunset on June 30, 2019.

MICHIGAN

On December 18, 2018, Governor Snyder approved HB 6498. The bill is known as the “motor vehicle franchise act.” Under the act, among other provisions, a manufacturer is prohibited from preventing a dealer from charging a consumer a documentary preparation fee. Effective March 28, 2019.

MINNESOTA

The Minnesota Department of Commerce published guidance on licensing requirements in the state on April 5, 2019. The guidance formalizes the Department’s requirement that a company that purchases retail installment contracts from Minnesota dealers must hold a sales finance company license. This applies to companies regardless of whether they have a physical presence in Minnesota. Effective for contracts executed after July 1, 2019.

NEW MEXICO

HB 6 was signed by the Governor on April 4, 2019. Among other tax-related provisions, the bill increases the rate of the motor vehicle excise tax. The applicable excise tax under the bill is 4% and is applied to the price paid for the vehicle or the reasonable value of the vehicle, under certain conditions. Allowances granted for vehicle trade-ins may be deducted from the price paid for the vehicle or the reasonable value. Effective July 1, 2019.

HB 150 became law on April 3, 2019. The bill applies to installment loans covered by the Installment Loan Act and the Small Loan Act. The bill expands annual lender reporting requirements and clarifies allowable loan insurance. The bill applies the limitation on permitted charges (not to exceed the lesser of $200 or 10% of the principal) specifically to a precomputed loan transaction, as opposed to simply “any such installment loan.” The bill prohibits any additional fee, interest or any other charge not specifically permitted for under the section. Effective July 1, 2019.

SB 350 was signed by the Governor on April 4, 2019. The bill amends definitions related to service contracts. It addresses a holder’s right to return a service contract, refund requirements, and restrictions on automatic renewal notices. Effective 90 days after adjournment of the Legislature.

NEW YORK

SB 7074 was signed on December 28, 2018. The bill raises the threshold for the exclusion of the plain language contract requirement to agreements involving amounts of $100,000 or less. Effective for contracts entered into after June 26, 2019.

NORTH CAROLINA

SB 162 modifies the origination fee banks or savings institutions may charge for a loan or extension of credit not secured by real property to the following:

Principal Amount	Maximum Origination Fee
Loans with principal of $100,000 or greater:	1/4 of 1% of the principal amount
Loans with principal of less than $100,000:
$0 to $1,499.99	$100
$1,500 to $19,999.99	$150
$20,000 to $29,999.99	$175
$30,000 to $49,999.99	$200
$50,000 to $99,999.99	$250

The bill states that a specific loan with a principal amount of less than $5,000, the APR shall not exceed 36%, inclusive of fees. The APR is to be computed in accordance with the Truth in Lending Act. There is no limit on fees for loans in excess of $300,000.  The bill also amends late charges for loan contracts made by banks or savings institutions, limiting the amount of late charges for loans with an original principal balance of greater than or equal to $1,500, to: the greater of $35 or 4% of the amount of the payment past due. Effective immediately (April 1, 2019).

NORTH DAKOTA

HB 1195 creates contract requirements applicable to service contract providers. Effective on contracts entered after July 31, 2019.

HB 1292 amends the definition of “purchase price” as it relates to the application of sales or use tax. Effective July 1, 2019.

OKLAHOMA

The Department of Consumer Credit published dollar bracket adjustments. Included in the adjustments are the following:

Retail Installment Sales, § 2-201:

The greater of:

The dollar amounts under § 3-508(A) remain the same.

The maximum delinquency charge for consumer credit sales and consumer loans will increase from $25.50 to $26.00. Effective July 1, 2019.

UTAH

HB 95 was signed by the Governor on March 25, 2019. The bill increases the collection costs for a dishonored check from $20 to $35. Effective 60 days following adjournment of the legislature.

VIRGINIA

SB 1325 was approved on March 25, 2019. The bill establishes requirements for offering GAP Waivers and includes provisions relating to disclosures, cancellation, and refunds. Effective July 1, 2019.

OHIO

Ohio HB 123 applies to loans made after April 26, 2019. This affects Small Loans (§§ 1321.01-1321.19), Short-term Loans (§§ 1321.35-1321.48), and Second Mortgage Loans (§§ 1321.51-1321.60).  The Act defines lending criteria for Small Loan Licensees, revises allowable fees, addresses restrictions for Short-Term Loan Licensees and adds disclosure requirements, among other requirements. Effective on loans made after April 26, 2019.

MASSACHUSETTS

HB 4086 went into effect on April 11, 2019. The bill established and modified certain laws regarding consumer financial and credit information.

The State of Alabama proposed a new rule regarding the processing of registrations and other records for persons applying to be vehicle protection product warrantors. The Insurance Commissioner propagated this rule and the fee for registration and yearly renewal is $250.00—Chapter 482-1-162.  Effective April 21, 2019.

KENTUCKY

Governor Matt Bevin signed House Bill 285 on March 26, 2019. The law applies to consumer loan companies and creates a new application and appeal process for licensure. Additionally, it requires applicants to submit specific information for licensure, increases the licensing application fee, and establishes other financial requirements. The statute also changes how the commissioner may take adverse action against a licensee. The rates for supervised lending did not change, but HB 285 replaces a credit investigation fee with a loan processing fee. This new loan processing fee is 5% of the original principal amount up to $150.00.  Effective date 90 days after the end of the legislative session.

MISSISSIPPI

House Bill 925 was signed by Governor Phil Bryant on March 21, 2019. The act revises the definition of a vehicle service contract and defines road hazards subject to those contracts.  Effective July 1, 2019.

NORTH DAKOTA

House Bill 1204 allows a collection agency to collect a transaction fee of up to two and one-half percent of a payment over and beyond the principal amount owed by a debtor.  In order to collect the transaction fee, a collection agency must provide a no-cost payment option that it discloses to the debtor at the time when credit card information is taken.  The bill was signed by Governor Doug Burgum on March 6, 2019.  Effective August 1, 2019.

House Bill 1181 was signed by the governor on March 20, 2019. This bill clarifies that Guaranteed Asset Protection (“GAP”) Waiver agreements can be sold in North Dakota. These GAP Waiver agreements are not considered insurance and are exempt from insurance laws. Additionally a free-look period must be offered to the consumer and the agreement is subject tonumerous disclosures.

PENNSYLVANIA

The Pennsylvania Department of Banking and Securities released a comment letter on January 31, 2019 regarding the sale of GAP insurance products offered by licensees operating under the Consumer Discount Company Act. The letter clarifies the conditions that must be in place for the offer of a GAP product. The most important aspect of the sale of this GAP product wasthe licensee charged nothing in excess of the premium it was given under the GAP Master Policy. Effective immediately.

UTAH

The State of Utah joins a growing list of states creating their own financial technology regulatory sandbox. Governor Gary Herbert signed House Bill 378 on March 25, 2019.

VIRGINIA

House Bill 2600 was signed into law by Governor Ralph Northam on March 8, 2019. The bill is meant to crack down on unsolicited telemarketing calls. The law also establishes certain communications which would be exempt from prosecution, such as calls regarding debt collection, state and federal elections, and charity drives.  Effective July 1, 2019.

House Bill 2109 and its counterpart legislation Senate Bill 1325 both passed their respective caucuses in the Virginia General Assembly. Signed by the governor on March 26, 2019, this law applies to GAP Waivers. These products are agreements and not considered insurance under Virginia’s insurance laws. The measure prohibits a creditor from conditioning an extension or term of credit on the purchase of a GAP Waiver, requires a GAP Waiver to include particular disclosures, and allows for a free-look period for a purchaser. Finally, the law also establishes requirements for the cancellation of GAP Waivers and the refunding of consumers.  Effective July 1, 2019.

WEST VIRGINIA

On March 26, 2019, Governor Jim Justice signed House Bill 3143 into law. The bill alters the rate structure of regulated consumer lenders under the West Virginia Consumer Credit and ProtectionAct. Previously the law had limits of $2,000 and $10,000 to serve as boundaries for different applied interest rates.

Those rates have not changed but the limit amounts have been increased to $3,500 and $15,000 respectively. For loans up to and including $3,500, a regulated consumer lender may contract for an amount of 31% per year on the unpaid balance of the principal amount.  For loans from $3,500.01 up to and including $15,000, a regulated consumer lender may contract for an amount of 27% per year on the unpaid balance of the principal amount. For loans of $15,000.01 and greater, a regulated consumer lender may contract for an amount of 18% per year on the unpaid balance of the principal amount.  Effective Date July 1, 2019.

WYOMING

Wyoming’s Governor Mark Gordon signed HB 57 on February 19, 2019. This bill creates a financial technology sandbox and authorizes the Banking Commissioner or the Secretary of State to waive specified statutes or rules which impede the testing of innovative financial products or services. Only financial products or services which cannot be made available under existing law are eligible. The envisioned products or services can be tested in the financial sandbox for up to two years with the possibility of extension.  Effective January 1, 2020.