The introduction of SB3692 could significantly impact the operational costs for licensed lenders who rely on certified database providers to report loan information. By increasing the fees associated with these services, the bill may lead to higher costs that could, in turn, be passed on to consumers. This change necessitates monitoring the balance between ensuring data integrity in loan reporting and the affordability of obtaining consumer loans.
Summary
SB3692 seeks to amend the Consumer Installment Loan Act by increasing the fee charged by certified database providers for entering loan information into a consumer reporting service database from $1 to $3 per loan. This modification aims to provide a more sustainable economic framework for database providers while ensuring that licensees maintain compliance with state regulations regarding consumer loans. The bill's effective date is set for 90 days after it becomes law.
Contention
While the bill is primarily concerned with adjusting fees, it is likely to face scrutiny regarding its potential implications for consumers and financial institutions. Stakeholders may express concerns over the affordability of loans should lenders choose to pass on the increased costs to borrowers. Furthermore, there may be discussions on whether the increased fees improve the service provided by database managers or merely serve to inflate profits without substantial benefits.