Text: SF00061 Text: SF00063 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.2504, unnumbered paragraph 1, Code 1 2 1995, is amended to read as follows: 1 3 With respect to a consumer credit transaction in which the 1 4 rate of finance charge required to be disclosed in the 1 5 transaction pursuant to section 537.3201 does not exceed 1 6 eighteen percent per year, other than a consumer lease or a 1 7 consumer rental purchase agreement, the creditor may, by 1 8 agreement with the consumer, refinance the unpaid balance and 1 9 may contract for and receive a finance charge based on the 1 10 amount financed resulting from the refinancing at a rate not 1 11 exceeding that permitted by the provisions on finance charge 1 12 for consumer credit sales other than open end credit in 1 13 section 537.2201 if a consumer credit sale is refinanced, the 1 14 provisions on finance charge for a consumer loan other than a 1 15 supervised loan in section 537.2401, subsection 1, or the 1 16 provisions on finance charge for a supervised loan not 1 17 pursuant to open end credit in section 537.2401, subsection 2, 1 18 as applicable, if a consumer loan is refinanced. With respect 1 19 to a consumer credit transaction in which the rate of finance 1 20 charge required to be disclosed in the transaction to the 1 21 consumer pursuant to section 537.3201 exceeds eighteen percent 1 22 per year, other than a consumer lease or a consumer rental 1 23 purchase agreement, the creditor may by agreement with the 1 24 consumer, refinance the unpaid balance and may contract for 1 25 and receive a finance charge based on the amount financed 1 26 resulting from the refinancing at a rate of finance charge not 1 27 to exceed thatwhich was required to be disclosed in the1 28original transaction to the consumerrate permitted for 1 29 consumer credit sales pursuant to section537.3201537.2201 or 1 30 the rate permitted for consumer loans pursuant to section 1 31 537.2401, whichever is greater. For the purpose of 1 32 determining the finance charge permitted, the amount financed 1 33 resulting from the refinancing consists of: 1 34 Sec. 2. Section 537.2505, subsection 3, Code 1995, is 1 35 amended by striking the subsection and inserting in lieu 2 1 thereof the following: 2 2 3. Upon the consolidation of any debt arising from or in 2 3 combination from a consumer credit sale, lender credit card, 2 4 seller credit card, or consumer loan, the creditor may 2 5 contract for and receive the finance charge at a rate 2 6 permitted for consumer credit sales pursuant to section 2 7 537.2201 or permitted for consumer loans pursuant to section 2 8 537.2401, whichever is greater. 2 9 EXPLANATION 2 10 This bill regulates the finance charge that may be imposed 2 11 for refinancing certain consumer credit transactions in which 2 12 the rate of interest required to be disclosed pursuant to the 2 13 federal Truth in Lending Act exceeds 18 percent per year. 2 14 Currently the permitted rate is based on the amount which was 2 15 required to be disclosed in the original transaction. This 2 16 bill provides that the rate is the same as permitted for 2 17 consumer credit sales pursuant to section 537.2201 or for 2 18 consumer loans pursuant to section 537.2401, whichever is 2 19 more. 2 20 The bill also amends a section providing for the 2 21 consolidation of debts arising from consumer loans, consumer 2 22 credit sales, lender credit cards, or seller credit cards. 2 23 Currently, if the consolidated debt arises from consumer loans 2 24 the finance charge must be the same as for consumer loans as 2 25 regulated pursuant to section 537.2401. If the consolidation 2 26 includes a debt arising from a consumer credit sale, or a 2 27 lender credit card, the rate must be the same as for consumer 2 28 credit sales as regulated in section 537.2201. This bill 2 29 provides that upon consolidation of any debt arising from a 2 30 consumer credit sale, lender credit card, seller credit card, 2 31 or consumer loan, the rate must be the same as provided 2 32 pursuant to section 537.2201 or 537.2401, whichever is more. 2 33 LSB 1474SS 76 2 34 da/sc/14
Text: SF00061 Text: SF00063 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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