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S1410.......................................by COMMERCE AND HUMAN RESOURCES
CONSUMER CREDIT - Amends existing law to increase the maximum amount of
certain charges allowed in regulated consumer credit transactions; and to
provide that parties may contract for delinquency charges on installments
or scheduled payments not paid in full within ten days after the scheduled
due date.
02/08 Senate intro - 1st rdg - to printing
02/11 Rpt prt - to Com/HuRes
02/22 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 27-8-0
AYES -- Andreason, Boatright, Brandt, Bunderson, Burtenshaw, Davis,
Deide, Dunklin, Geddes, Goedde, Hill, Ingram, Keough, King-Barrutia,
Little, Lodge, Marley, Noh, Risch, Sandy, Schroeder, Sims, Stegner,
Stennett, Thorne, Wheeler, Williams
NAYS -- Branch(Bartlett), Cameron, Darrington, Frasure, Hawkins,
Ipsen, Richardson, Sorensen
Absent and excused -- None
Floor Sponsor - Schroeder
Title apvd - to House
02/28 House intro - 1st rdg - to Bus
03/08 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
Rls susp - PASSED - 50-10-10
AYES -- Aikele, Barraclough, Bedke, Bell, Block, Bolz, Bradford,
Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy, Deal,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Gould, Hadley, Hammond, Henbest, Higgins, Hornbeck, Jaquet, Jones,
Kellogg, Kendell, Kunz, Lake, Meyer, Montgomery, Mortensen, Pearce,
Pischner, Pomeroy, Raybould, Roberts, Shepherd, Smith(33), Smylie,
Stevenson, Stone, Tilman, Wheeler, Mr. Speaker
NAYS -- Barrett, Loertscher, Martinez, McKague, Ridinger, Robison,
Sali, Schaefer, Trail, Young
Absent and excused -- Bieter, Black, Boe, Harwood, Langford, Mader,
Moyle, Sellman, Smith(23), Wood
Floor Sponsor - Deal
Title apvd - to Senate
03/12 To enrol
03/13 Rpt enrol - Pres signed
Sp signed
03/14 To Governor
03/26 Governor signed
Session Law Chapter 302
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1410
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO FINANCE CHARGES; AMENDING SECTION 28-42-301, IDAHO CODE, TO
3 INCREASE THE MAXIMUM AMOUNT OF CERTAIN CHARGES ALLOWED IN PRECOMPUTED CON-
4 SUMER CREDIT TRANSACTIONS, CONSUMER LOANS SECURED BY SECURITY INTERESTS IN
5 REAL PROPERTY AND ALL OTHER REGULATED CONSUMER CREDIT TRANSACTIONS AND TO
6 PROVIDE THAT PARTIES MAY CONTRACT FOR DELINQUENCY CHARGES ON INSTALLMENTS
7 OR SCHEDULED PAYMENTS NOT PAID IN FULL WITHIN TEN DAYS AFTER THE SCHEDULED
8 DUE DATE.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 28-42-301, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 28-42-301. DELINQUENCY CHARGES. (1) With respect to a precomputed regu-
13 lated consumer credit transaction, the parties may contract for a delinquency
14 charge on any installment not paid in full within ten (10) days after its due
15 date, as originally scheduled or as deferred, in an amount which is not more
16 than five percent (5%) of the unpaid amount of the installment, or five twelve
17 dollars and fifty cents ($5.012.50), whichever is greater.
18 (2) With respect to a regulated consumer loan secured by a security
19 interest in real property which is used or expected to be used as the resi-
20 dence of the debtor which is not a precomputed regulated consumer loan, the
21 parties may contract for a delinquency charge on any installment not paid in
22 full within fifteen (15) days after its scheduled due date in an amount not
23 exceeding five percent (5%) of the unpaid amount of the installment, or five
24 fifteen dollars ($15.00), whichever is greater.
25 (3) With respect to all other regulated consumer credit transactions,
26 whether secured or unsecured, and whether such credit transactions are classi-
27 fied as open-end credit or closed-end credit, the parties may contract for a
28 delinquency charge on any installment or scheduled payment not paid in full
29 within fifteen ten (150) days after its scheduled due date in an amount not
30 exceeding five percent (5%) of the unpaid amount of the installment or sched-
31 uled payment, or ten fifteen dollars ($105.00), whichever is greater.
32 (4) A delinquency charge under subsection (1), subsection (2) or subsec-
33 tion (3) of this section may be collected only once on an installment or
34 scheduled payment, however long it remains in default. No delinquency charge
35 may be collected if the installment or scheduled payment has been deferred and
36 a deferral charge, section 28-42-302, Idaho Code, has been paid or incurred. A
37 delinquency charge may be collected at the time it accrues or at any time
38 thereafter.
39 (5) No delinquency charge may be collected on an installment or payment
40 which is paid in full within ten (10) days after its scheduled due date even
41 though an earlier maturing installment or scheduled payment or a delinquency
42 charge on an earlier installment or scheduled payment may not have been paid
43 in full. For purposes of this subsection, payments are applied first to cur-
2
1 rent installments or scheduled payments and then to delinquent installments
2 or scheduled payments.
3 (6) If two (2) installments or parts thereof of a precomputed regulated
4 consumer credit transaction are in default for ten (10) days or more, the
5 creditor may elect to convert the credit transaction from a precomputed regu-
6 lated consumer credit transaction to one in which the finance charge is based
7 on unpaid balances. In this event, he shall make a rebate pursuant to the pro-
8 visions on rebate upon prepayment, section 28-42-307, Idaho Code, as of the
9 maturity date of the first delinquent installment, and thereafter may make a
10 finance charge as authorized by the provisions on finance charge for regulated
11 consumer credit transactions. The amount of the rebate shall not be reduced by
12 the amount of any permitted minimum charge, section 28-42-307, Idaho Code.
STATEMENT OF PURPOSE
RS 11911C1
Relating to consumer credit, this legislation increases the
minimum delinquency charge that may be assessed by a creditor
when a payment in a consumer credit transaction is not paid in
full within ten or fifteen days after its due date. The existing
statutory minimum delinquency charges have not been increased
since 1996 and are lower than the charges allowed in most of our
surrounding states. Moreover, many out-of-state creditors rely on
federal preemptive statutes to charge a higher delinquency charge
than that allowed to local creditors under state law. As a
consequence, Idaho businesses are placed in a disadvantaged
position because customers tend to pay out-of-state creditors
before they pay local creditors. This legislation does not
increase the minimum delinquency charges in consumer transactions
to the level allowed in most of the states surrounding Idaho, but
it does place Idaho businesses in a better position to encourage
their customers to make timely payments.
FISCAL IMPACT
This legislation applies only to private transactions and will
have no fiscal impact on state or local government.
Contact
Name: Mike Brassey, Hopkins, Roden Crockett, Hansen & Hoopes PLLC
Phone: 336-7930
STATEMENT OF PURPOSE/FISCAL NOTE S 1410