Text: HSB00111                          Text: HSB00113
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 112

Bill Text

PAG LIN
  1  1    Section 1.  Section 537.2502, Code 1999, is amended to read
  1  2 as follows:
  1  3    537.2502  DELINQUENCY CHARGES.
  1  4    1.  With respect to a precomputed consumer credit
  1  5 transaction sale, a consumer loan, open-end credit, or a home
  1  6 equity line of credit under section 535.10, the parties may
  1  7 contract for a delinquency charge on any installment or
  1  8 payment not paid in full within ten days after its due date,
  1  9 as originally scheduled or as deferred, in an amount not
  1 10 exceeding the greater of either of the following:
  1 11    a.  Five percent of the unpaid amount of the installment or
  1 12 payment, or a maximum of twenty dollars.
  1 13    b.  The deferral charge that would be permitted to defer
  1 14 the unpaid amount of the installment or payment for the period
  1 15 that it is delinquent.
  1 16    2.  A delinquency charge under subsection 1, paragraph "a",
  1 17 may be collected only once on an installment or payment
  1 18 however long it remains in default.  No A delinquency charge
  1 19 may shall not be collected with respect to a deferred
  1 20 installment or payment unless the installment or payment is
  1 21 not paid in full within ten days after its deferred due date.
  1 22 A delinquency charge may be collected at the time it accrues
  1 23 or at any time afterward.
  1 24    3.  No A delinquency charge may shall not be collected
  1 25 under subsection 1, paragraph "a", on an installment or
  1 26 payment which is paid in full within ten days after its
  1 27 scheduled or deferred installment or payment due date even
  1 28 though an earlier maturing installment or payment or a
  1 29 delinquency or deferral charge on an earlier installment or
  1 30 payment may not have been paid in full.  For purposes of this
  1 31 subsection payments on a consumer credit sale, a consumer
  1 32 loan, or a home equity line of credit under section 535.10 are
  1 33 applied first to current installments or payments and then to
  1 34 delinquent installments or payments, and payments on open-end
  1 35 credit are applied first to an amount due for the current
  2  1 billing cycle and then to delinquent payments.
  2  2    4.  With respect to open-end credit, the parties may
  2  3 contract for a delinquency charge on any payment not paid in
  2  4 full when due, as originally scheduled or as deferred, in an
  2  5 amount up to fifteen dollars.
  2  6    5.  A delinquency charge under subsection 4 may be
  2  7 collected only once on a payment however long it remains in
  2  8 default.  A delinquency charge shall not be collected with
  2  9 respect to a deferred payment unless the payment is not paid
  2 10 in full on or before its deferred due date.  A delinquency
  2 11 charge may be collected at the time it accrues or at any time
  2 12 afterward.
  2 13    6.  A delinquency charge shall not be collected under
  2 14 subsection 4 on a payment which is paid in full on or before
  2 15 its scheduled or deferred due date even though an earlier
  2 16 maturing payment or a delinquency or deferred charge on an
  2 17 earlier payment has not been paid in full.  For purposes of
  2 18 this subsection, payments are applied first to amounts due for
  2 19 the current billing cycle and then to delinquent payments.  
  2 20                           EXPLANATION
  2 21    This bill amends Code section 537.2502 relating to
  2 22 delinquency charges associated with certain consumer credit
  2 23 transactions.  The bill provides that the parties to a
  2 24 consumer credit sale, a consumer loan, or a home equity line
  2 25 of credit may contract for a delinquency charge on any
  2 26 installment or payment not paid in full within 10 days after
  2 27 its due date, as originally scheduled or as deferred, in an
  2 28 amount not exceeding the greater of five percent of the unpaid
  2 29 amount of the installment or payment, or a maximum of $20; or
  2 30 a deferral charge that would be permitted to defer the unpaid
  2 31 amount of the installment or payment for the period that it is
  2 32 delinquent.  Under current law, such delinquency charge
  2 33 applies only to precomputed consumer credit transactions.
  2 34    The bill increases the maximum delinquency charge which may
  2 35 be assessed with respect to open-end credit from $15 to the
  3  1 greater of $20 or a deferral charge that would be permitted to
  3  2 defer the unpaid amount for the period that it is delinquent.
  3  3 The bill also provides that a delinquency charge shall not be
  3  4 collected with respect to an amount that is paid in full
  3  5 within 10 days after its scheduled or deferred due date.
  3  6 Currently, there is no 10-day grace period and a delinquency
  3  7 charge can be collected if a payment amount is not paid in
  3  8 full on or before its scheduled or deferred due date.  
  3  9 LSB 2153HC 78
  3 10 mj/sc/14
     

Text: HSB00111                          Text: HSB00113
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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