Introduced Version
HOUSE BILL No. 1174
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 24-4.5; IC 28-7-5-28; IC 35-45-7-2.
Synopsis: Charges for supervised loans. Provides that for a supervised
loan that is made under the Uniform Consumer Credit Code (UCCC)
and that: (1) is entered into after June 30, 2025; (2) is not secured by
an interest in land or by personal property used or expected to be used
as the debtor's principal dwelling; and (3) has a principal amount that
does not exceed $5,000; a lender may contract for and receive, in
addition to the loan finance charge and any other permitted charges and
fees, a monthly service fee that is based on the amount of principal
originally contracted for. Provides that for a supervised loan that: (1)
is entered into after June 30, 2025; (2) is not secured by an interest in
land or by personal property used or expected to be used as the debtor's
principal dwelling; (3) has a principal amount that is more than $5,000
but does not exceed $25,000; and (4) is for a term of at least six
months; a lender may contract for and receive a loan finance charge not
exceeding 36% per year on the unpaid balances of the principal. For a
supervised loan that qualifies for the flat 36% annual finance charge
(instead of the blended loan finance charge that applies to all other
supervised loans), requires the lender to: (1) report the borrower's
payments on the loan to at least one nationwide consumer reporting
agency; and (2) offer to the borrower, at or before the consummation
of the loan and at no cost to the borrower, a consumer credit education
program provided by the lender or a third party provider. Provides that,
based on information contained in annual composite reports filed with
the department of financial institutions (department) by creditors
required to be licensed under the UCCC, the department shall publish
annually on the department's website a report that contains specified
(Continued next page)
Effective: July 1, 2025.
Teshka, Judy, Heaton
January 8, 2025, read first time and referred to Committee on Financial Institutions.
2025 IN 1174—LS 6725/DI 101 Digest Continued
information concerning supervised loans made after June 30, 2025, by
nondepository licensees during the reporting period covered by the
composite reports. Makes conforming amendments to: (1) the UCCC;
and (2) the statutes governing: (A) pawnbrokers; and (B) loansharking.
2025 IN 1174—LS 6725/DI 1012025 IN 1174—LS 6725/DI 101 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1174
A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 24-4.5-3-203.5, AS AMENDED BY P.L.129-2020,
2 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 203.5. Delinquency Charges — (1) With respect
4 to a consumer loan, refinancing, or consolidation, the parties may
5 contract for a delinquency charge of not more than the following:
6 (a) Five dollars ($5) on any installment or minimum payment due
7 that is not paid in full not later than ten (10) days after its
8 scheduled due date, in the case of a consumer loan, refinancing,
9 or consolidation that is made before July 1, 2019. The amount of
10 five dollars ($5) in this subdivision is subject to change under
11 IC 24-4.5-1-106. In addition, the parties may provide by contract
12 for a delinquency charge that is subject to change. If the parties
13 provide by contract for a delinquency charge that is subject to
14 change, the lender shall disclose in the contract that the amount
15 of the delinquency charge is subject to change under
2025 IN 1174—LS 6725/DI 101 2
1 IC 24-4.5-1-106 or this section.
2 (b) In the case of a consumer loan, refinancing, or consolidation
3 that is made after June 30, 2019, the following:
4 (i) Five dollars ($5) on any installment or minimum payment
5 due that is not paid in full not later than ten (10) days after its
6 scheduled due date, if installments under the consumer loan,
7 refinancing, or consolidation are due every fourteen (14) days
8 or less. The amount of five dollars ($5) in this clause is not
9 subject to change under IC 24-4.5-1-106.
10 (ii) Twenty-five dollars ($25) on any installment or minimum
11 payment due that is not paid in full not later than ten (10) days
12 after its scheduled due date, if installments under the
13 consumer loan, refinancing, or consolidation are due every
14 fifteen (15) days or more. The amount of twenty-five dollars
15 ($25) in this clause is not subject to change under
16 IC 24-4.5-1-106.
17 (iii) Twenty-five dollars ($25) on any installment or minimum
18 payment due that is not paid in full not later than ten (10) days
19 after its scheduled due date, in the case of a consumer loan,
20 refinancing, or consolidation that is payable in a single
21 installment that is due at least thirty (30) days after the
22 consumer loan, refinancing, or consolidation is made. The
23 amount of twenty-five dollars ($25) in this clause is not
24 subject to change under IC 24-4.5-1-106.
25 (2) A delinquency charge under this section may be collected only
26 once on an installment however long it remains in default. With regard
27 to a delinquency charge on consumer loans made under a revolving
28 loan account, the delinquency charge may be applied each month that
29 the payment is less than the minimum required payment on the
30 account. A delinquency charge may be collected any time after it
31 accrues. A delinquency charge may not be collected if:
32 (a) the installment has been deferred and a deferral charge (IC
33 24-4.5-3-204) has been paid or incurred;
34 (b) a charge for a skip-a-payment service under
35 IC 24-4.5-3-202(1)(i) has been paid or incurred, as provided in
36 IC 24-4.5-3-202(1)(i)(iii); or
37 (c) a charge for an optional expedited payment service under
38 IC 24-4.5-3-202(1)(j) has been paid or incurred, as provided in
39 IC 24-4.5-3-202(1)(j)(v).
40 (3) A creditor may not, directly or indirectly, charge or collect a
41 delinquency charge on a payment that:
42 (a) is paid not later than ten (10) days after its scheduled due date;
2025 IN 1174—LS 6725/DI 101 3
1 and
2 (b) is otherwise a full payment of the payment due for the
3 applicable installment period;
4 if the only delinquency with respect to the consumer loan, refinancing,
5 or consolidation is attributable to a delinquency charge assessed on an
6 earlier installment.
7 (4) If two (2) or more installments, or parts of two (2) or more
8 installments, of a precomputed loan are in default for ten (10) days or
9 more, the lender may elect to convert the loan from a precomputed loan
10 to a loan in which the finance charge is based on unpaid balances. A
11 lender that makes this election shall make a rebate under the provisions
12 on rebates upon prepayment (IC 24-4.5-3-210) as of the maturity date
13 of the first delinquent installment, and thereafter may make a loan
14 finance charge as authorized by the provisions on loan finance charges
15 for consumer loans (IC 24-4.5-3-201) or supervised loans (IC
16 24-4.5-3-508). (section 508, 508.1, or 508.2 of this chapter, as
17 applicable). The amount of the rebate shall not be reduced by the
18 amount of any permitted minimum charge. (IC 24-4.5-3-210). Any
19 deferral charges made on installments due at or after the maturity date
20 of the first delinquent installment shall be rebated, and no further
21 deferral charges shall be made.
22 SECTION 2. IC 24-4.5-3-205, AS AMENDED BY P.L.85-2020,
23 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2025]: Sec. 205. Loan Finance Charge on Refinancing —
25 With respect to a consumer loan, refinancing, or consolidation, the
26 lender may by agreement with the debtor refinance the unpaid balance
27 and may contract for and receive a loan finance charge based on the
28 principal resulting from the refinancing at a rate not exceeding that
29 permitted by the provisions on a loan finance charge for consumer
30 loans (IC 24-4.5-3-201) or the provisions on a loan finance charge for
31 supervised loans (IC 24-4.5-3-508), (section 508, 508.1, or 508.2 of
32 this chapter, as applicable), whichever is appropriate. For the purpose
33 of determining the loan finance charge permitted, the principal
34 resulting from the refinancing comprises the following:
35 (a) If:
36 (i) the transaction was not precomputed, the total of the unpaid
37 balance and the accrued charges on the date of the refinancing;
38 or
39 (ii) the transaction was precomputed, in the case of a
40 transaction entered into before July 1, 2020, the amount which
41 the debtor would have been required to pay upon prepayment
42 pursuant to the provisions on rebate upon prepayment (IC
2025 IN 1174—LS 6725/DI 101 4
1 24-4.5-3-210) on the date of refinancing.
2 (b) Appropriate additional charges (IC 24-4.5-3-202), payment of
3 which is deferred.
4 SECTION 3. IC 24-4.5-3-206, AS AMENDED BY P.L.85-2020,
5 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 206. Loan Finance Charge on Consolidation —
7 (1) If a debtor owes an unpaid balance to a lender with respect to a
8 consumer loan, refinancing, or consolidation, and becomes obligated
9 on another consumer loan, refinancing, or consolidation with the same
10 lender, the parties may agree to a consolidation resulting in a single
11 schedule of payments. If the previous consumer loan, refinancing, or
12 consolidation was not precomputed, the parties may agree to add the
13 unpaid amount of principal and accrued charges on the date of
14 consolidation to the principal with respect to the subsequent loan. If the
15 previous consumer loan, refinancing, or consolidation was
16 precomputed, in the case of a transaction entered into before July 1,
17 2020, the parties may agree to refinance the unpaid balance pursuant
18 to the provisions on refinancing (IC 24-4.5-3-205) and to consolidate
19 the principal resulting from the refinancing by adding it to the principal
20 with respect to the subsequent loan. In either case the lender may
21 contract for and receive a loan finance charge based on the aggregate
22 principal resulting from the consolidation at a rate not in excess of that
23 permitted by the provisions on loan finance charge for consumer loans
24 (IC 24-4.5-3-201) or the provisions on loan finance charge for
25 supervised loans (IC 24-4.5-3-508), (section 508, 508.1, or 508.2 of
26 this chapter, as applicable), whichever is appropriate.
27 (2) The parties may agree to consolidate the unpaid balance of a
28 consumer loan with the unpaid balance of a consumer credit sale. The
29 parties may agree to refinance the previous unpaid balance pursuant to
30 the provisions on refinancing sales (IC 24-4.5-2-205) or the provisions
31 on refinancing loans (IC 24-4.5-3-205), whichever is appropriate, and
32 to consolidate the amount financed resulting from the refinancing or
33 the principal resulting from the refinancing by adding it to the amount
34 financed or principal with respect to the subsequent sale or loan. The
35 aggregate amount resulting from the consolidation shall be deemed
36 principal, and the creditor may contract for and receive a loan finance
37 charge based on the principal at a rate not in excess of that permitted
38 by the provisions on loan finance charge for consumer loans (IC
39 24-4.5-3-201) or the provisions on loan finance charge for supervised
40 loans (IC 24-4.5-3-508), (section 508, 508.1, or 508.2 of this chapter,
41 as applicable), whichever is appropriate.
42 SECTION 4. IC 24-4.5-3-208 IS AMENDED TO READ AS
2025 IN 1174—LS 6725/DI 101 5
1 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 208. Advances to
2 Perform Covenants of Debtor — (1) If the agreement with respect to a
3 consumer loan, refinancing, or consolidation contains covenants by the
4 debtor to perform certain duties pertaining to insuring or preserving
5 collateral and if the lender pursuant to the agreement pays for
6 performance of the duties on behalf of the debtor, the lender may add
7 the amounts paid to the debt. Within a reasonable time after advancing
8 any sums, he the lender shall state to the debtor in writing the amount
9 of the sums advanced, any charges with respect to this amount, and any
10 revised payment schedule and, if the duties of the debtor performed by
11 the lender pertain to insurance, a brief description of the insurance paid
12 for by the lender including the type and amount of coverages. No
13 further information need be given.
14 (2) A loan finance charge may be made for sums advanced pursuant
15 to subsection (1) at a rate not exceeding the rate stated to the debtor
16 pursuant to the provisions on disclosure (Part 3) with respect to the
17 loan, refinancing, or consolidation, except that with respect to a
18 revolving loan account the amount of the advance may be added to the
19 unpaid balance of the debt and the lender may make a loan finance
20 charge not exceeding that permitted by the provisions on loan finance
21 charge for consumer loans (IC 24-4.5-3-201) or for supervised loans
22 (24-4.5-3-508), (section 508, 508.1, or 508.2 of this chapter, as
23 applicable), whichever is appropriate.
24 SECTION 5. IC 24-4.5-3-210, AS AMENDED BY P.L.85-2020,
25 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2025]: Sec. 210. Rebate upon Prepayment — (1) Except for
27 subsections (2) and (9), this section applies only to a loan agreement
28 entered into before July 1, 2020. Except as provided in subsection (2),
29 upon prepayment in full of the unpaid balance of a precomputed
30 consumer loan, refinancing, or consolidation, an amount not less than
31 the unearned portion of the loan finance charge calculated according
32 to this section shall be rebated to the debtor. If the rebate otherwise
33 required is less than one dollar ($1), no rebate need be made.
34 (2) Upon prepayment in full of a consumer loan, refinancing, or
35 consolidation, other than one (1) under a revolving loan account, if the
36 loan finance charge earned is less than any permitted minimum loan
37 finance charge (IC 24-4.5-3-201(7), or IC 24-4.5-3-508(7)) or section
38 508(7), 508.1(7), or 508.2(5) of this chapter, as applicable)
39 contracted for, whether or not the consumer loan, refinancing, or
40 consolidation is precomputed, the lender may collect or retain the
41 minimum loan finance charge, as if earned, not exceeding the loan
42 finance charge contracted for.
2025 IN 1174—LS 6725/DI 101 6
1 (3) The unearned portion of the loan finance charge is a fraction of
2 the loan finance charge of which the numerator is the sum of the
3 periodic balances scheduled to follow the computational period in
4 which prepayment occurs, and the denominator is the sum of all
5 periodic balances under either the loan agreement or, if the balance
6 owing resulted from a refinancing (IC 24-4.5-3-205) or a consolidation
7 (IC 24-4.5-3-206), under the refinancing agreement or consolidation
8 agreement.
9 (4) In this section:
10 (a) "periodic balance" means the amount scheduled to be
11 outstanding on the last day of a computational period before
12 deducting the payment, if any, scheduled to be made on that day;
13 (b) "computation period" means one (1) month if one-half (1/2)
14 or more of the intervals between scheduled payments under the
15 agreement is one (1) month or more, and otherwise means one (1)
16 week;
17 (c) the "interval" to the due date of the first scheduled installment
18 or the final scheduled payment date is measured from the date of
19 a loan, refinancing, or consolidation, and includes either the first
20 or last day of the interval; and
21 (d) if the interval to the due date of the first scheduled installment
22 does not exceed one (1) month by more than fifteen (15) days
23 when the computational period is one (1) month, or eleven (11)
24 days when the computational period is one (1) week, the interval
25 shall be considered as one (1) computational period.
26 (5) This subsection applies only if the schedule of payments is not
27 regular.
28 (a) If the computational period is one (1) month and:
29 (i) if the number of days in the interval to the due date of the
30 first scheduled installment is less than one (1) month by more
31 than five (5) days, or more than one (1) month by more than
32 five (5) but not more than fifteen (15) days, the unearned loan
33 finance charge shall be increased by an adjustment for each
34 day by which the interval is less than one (1) month and, at the
35 option of the lender, may be reduced by an adjustment for each
36 day by which the interval is more than one (1) month; the
37 adjustment for each day shall be one-thirtieth (1/30) of that
38 part of the loan finance charge earned in the computational
39 period prior to the due date of the first scheduled installment
40 assuming that period to be one (1) month; and
41 (ii) if the interval to the final scheduled payment date is a
42 number of computational periods plus an additional number of
2025 IN 1174—LS 6725/DI 101 7
1 days less than a full month, the additional number of days shall
2 be considered a computational period only if sixteen (16) days
3 or more. This clause applies whether or not clause (i) applies.
4 (b) Notwithstanding subdivision (a), if the computational period
5 is one (1) month, the number of days in the interval to the due
6 date of the first installment exceeds one (1) month by not more
7 than fifteen (15) days, and the schedule of payments is otherwise
8 regular, the lender, at the lender's option, may exclude the extra
9 days and the charge for the extra days in computing the unearned
10 loan finance charge; but if the lender does so and a rebate is
11 required before the due date of the first scheduled installment, the
12 lender shall compute the earned charge for each elapsed day as
13 one-thirtieth (1/30) of the amount the earned charge would have
14 been if the first interval had been one (1) month.
15 (c) If the computational period is one (1) week and:
16 (i) if the number of days in the interval to the due date of the
17 first scheduled installment is less than five (5) days, or more
18 than nine (9) days, but not more than eleven (11) days, the
19 unearned loan finance charge shall be increased by an
20 adjustment for each day by which the interval is less than
21 seven (7) days and, at the option of the lender, may be reduced
22 by an adjustment for each day by which the interval is more
23 than seven (7) days; the adjustment for each day shall be
24 one-seventh (1/7) of that part of the loan finance charge earned
25 in the computational period prior to the due date of the first
26 scheduled installment, assuming that period to be one (1)
27 week; and
28 (ii) if the interval to the final scheduled payment date is a
29 number of computational periods plus an additional number of
30 days less than a full week, the additional number of days shall
31 be considered a computational period only if five (5) days or
32 more. This clause applies whether or not clause (i) applies.
33 (6) If a deferral (IC 24-4.5-3-204) has been agreed to, the unearned
34 portion of the loan finance charge shall be computed without regard to
35 the deferral. The amount of deferral charge earned at the date of
36 prepayment shall also be calculated. If the deferral charge earned is
37 less than the deferral charge paid, the difference shall be added to the
38 unearned portion of the loan finance charge. If any part of a deferral
39 charge has been earned but has not been paid, that part shall be
40 subtracted from the unearned portion of the loan finance charge or shall
41 be added to the unpaid balance.
42 (7) This section does not preclude the collection or retention by the
2025 IN 1174—LS 6725/DI 101 8
1 lender of delinquency charges (IC 24-4.5-3-203.5).
2 (8) If the maturity is accelerated for any reason and judgment is
3 obtained, the debtor is entitled to the same rebate as if payment had
4 been made on the date judgment is entered.
5 (9) Upon prepayment in full of a consumer loan by the proceeds of
6 consumer credit insurance (as defined in IC 24-4.5-4-103), the debtor
7 or the debtor's estate shall pay the same loan finance charge or receive
8 the same rebate as though the debtor had prepaid the agreement on the
9 date the proceeds of the insurance are paid to the lender, but no later
10 than ten (10) business days after satisfactory proof of loss is furnished
11 to the lender. This subsection applies whether or not the loan is
12 precomputed.
13 (10) Upon prepayment in full of a transaction with a term of more
14 than sixty-one (61) months, the unearned loan finance charge shall be
15 computed by applying the disclosed annual percentage rate that would
16 yield the loan finance charge originally contracted for to the unpaid
17 balances of the amount financed for the full computational periods
18 following the prepayment, as originally scheduled or as deferred.
19 SECTION 6. IC 24-4.5-3-505, AS AMENDED BY P.L.197-2023,
20 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 505. (1) Every creditor required to be licensed
22 under this article shall maintain records in conformity with United
23 States generally accepted accounting principles and practices, or in any
24 other form that may be preapproved at the discretion of the director, in
25 a manner that will enable the department to determine whether the
26 licensee is complying with the provisions of this article. The record
27 keeping system of a licensee shall be sufficient if the licensee makes
28 the required information reasonably available. The department shall
29 determine the sufficiency of the records and whether the licensee has
30 made the required information reasonably available. The department
31 shall be given free access to the records wherever located. The records
32 pertaining to any loan shall be retained for two (2) years after making
33 the final entry relating to the loan, but in the case of a revolving loan
34 account the two (2) years is measured from the date of each entry. A
35 person licensed or required to be licensed under this chapter is subject
36 to IC 28-1-2-30.5 with respect to any records maintained by the person.
37 A person that is exempt (either under this article or under
38 IC 24-4.4-1-202(b)(8)) from licensing and that sponsors one (1) or
39 more licensed mortgage loan originators as permitted by
40 IC 24-4.4-1-202(b)(8) or by 750 IAC 9, shall:
41 (a) cooperate with the department; and
42 (b) provide access to records and documents;
2025 IN 1174—LS 6725/DI 101 9
1 as required by the department in carrying out examinations of the
2 activities of the licensed mortgage loan originators sponsored by the
3 person.
4 (2) The unique identifier of any person originating a mortgage
5 transaction must be clearly shown on all mortgage transaction
6 application forms and any other documents as required by the director.
7 (3) Every licensee that engages in mortgage transactions shall use
8 automated examination and regulatory software designated by the
9 director, including third party software. Use of the software consistent
10 with guidance documents and policies issued by the director is not a
11 violation of IC 28-1-2-30.
12 (4) Each:
13 (a) creditor that is licensed by the department to engage in
14 mortgage transactions; and
15 (b) person that is exempt (either under this article or under
16 IC 24-4.4-1-202(b)(8)) from licensing and that:
17 (i) employs one (1) or more licensed mortgage loan
18 originators; or
19 (ii) sponsors one (1) or more licensed mortgage loan
20 originators as permitted by IC 24-4.4-1-202(b)(8) or by 750
21 IAC 9;
22 shall submit to the NMLSR a call report, which must be in the form
23 and contain information the NMLSR requires.
24 (5) Every creditor required to be licensed under this article shall file
25 with the department a composite report as required by the department,
26 but not more frequently than annually, in the form prescribed by the
27 department relating to all consumer loans made by the licensee. The
28 department shall consult with comparable officials in other states for
29 the purpose of making the kinds of information required in the reports
30 uniform among the states. Information contained in the reports shall be
31 confidential and may be published only in composite form. The
32 department may impose a fee in an amount fixed by the department
33 under IC 28-11-3-5 for each day that a creditor fails to file the report
34 required by this subsection.
35 (6) Based on the information contained in the composite reports
36 filed with the department under subsection (5), the department
37 shall publish on the department's website, on an annual basis, a
38 report that contains the following information, in composite form,
39 concerning supervised loans made under section 508.1 of this
40 chapter after June 30, 2025, by nondepository licensees during the
41 reporting period covered by the composite reports filed under
42 subsection (5):
2025 IN 1174—LS 6725/DI 101 10
1 (a) The total number of supervised loans made during the
2 reporting period, categorized by the following ranges of the
3 principal (as defined in section 107(3) of this chapter) of the
4 supervised loans:
5 (i) Supervised loans with a principal that is two thousand
6 dollars ($2,000) or less.
7 (ii) Supervised loans with a principal that is more than two
8 thousand dollars ($2,000) but does not exceed four
9 thousand dollars ($4,000).
10 (iii) Supervised loans with a principal that is more than
11 four thousand dollars ($4,000) but does not exceed ten
12 thousand dollars ($10,000).
13 (iv) Supervised loans with a principal that is more than ten
14 thousand dollars ($10,000).
15 (b) For each range of principal identified under subdivision
16 (a), the aggregate dollar amount of the supervised loans made
17 in that range during the reporting period.
18 (c) For the data reported in each range of principal under
19 subdivisions (a) and (b), the change in the reported data for
20 the reporting period as compared to the corresponding
21 reported data in the immediately preceding reporting period.
22 (7) Based on the information contained in the composite reports
23 filed with the department under subsection (5), the department
24 shall publish on the department's website, on an annual basis, a
25 report that contains the following information, in composite form,
26 concerning supervised loans made under section 508.2 of this
27 chapter after June 30, 2025, by nondepository licensees during the
28 reporting period covered by the composite reports filed under
29 subsection (5):
30 (a) The total number of supervised loans made during the
31 reporting period, categorized by the following ranges of the
32 principal (as defined in section 107(3) of this chapter) of the
33 supervised loans:
34 (i) Supervised loans with a principal that is more than five
35 thousand dollars ($5,000) but does not exceed ten thousand
36 dollars ($10,000).
37 (ii) Supervised loans with a principal that is more than ten
38 thousand dollars ($10,000) but does not exceed fifteen
39 thousand dollars ($15,000).
40 (iii) Supervised loans with a principal that is more than
41 fifteen thousand dollars ($15,000) but does not exceed
42 twenty-five thousand dollars ($25,000).
2025 IN 1174—LS 6725/DI 101 11
1 (b) For each range of principal identified under subdivision
2 (a), the aggregate dollar amount of the supervised loans made
3 in that range during the reporting period.
4 (c) For the data reported in each range of principal under
5 subdivisions (a) and (b), the change in the reported data for
6 the reporting period as compared to the corresponding
7 reported data in the immediately preceding reporting period.
8 (6) (8) A creditor required to be licensed under this article shall file
9 notification with the department if the licensee:
10 (a) has a change in name, address, or principals;
11 (b) opens a new branch, closes an existing branch, or relocates an
12 existing branch;
13 (c) files for bankruptcy or reorganization; or
14 (d) is subject to revocation or suspension proceedings by a state
15 or governmental authority with regard to the licensee's activities;
16 not later than thirty (30) days after the date of the event described in
17 this subsection.
18 (7) (9) Every licensee shall file notification with the department if
19 the licensee or any director, executive officer, or manager of the
20 licensee has been convicted of a felony under the laws of Indiana or
21 any other jurisdiction. The licensee shall file the notification required
22 by this subsection not later than thirty (30) days after the date of the
23 event described in this subsection.
24 SECTION 7. IC 24-4.5-3-508, AS AMENDED BY P.L.29-2022,
25 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2025]: Sec. 508. Loan Finance Charge for Supervised Loans
27 ) (1) This section applies only to the following:
28 (a) A supervised loan entered into before July 1, 2025.
29 (b) A supervised loan that is secured by:
30 (i) an interest in land; or
31 (ii) personal property used or expected to be used as the
32 principal dwelling of the debtor;
33 regardless of when the supervised loan is entered into.
34 With respect to a supervised loan, including a loan pursuant to a
35 revolving loan account, a supervised lender may contract for and
36 receive a loan finance charge not exceeding that permitted by this
37 section.
38 (2) The loan finance charge, calculated according to the actuarial
39 method, may not exceed the equivalent of the greater of:
40 (a) the total of:
41 (i) thirty-six percent (36%) per year on that part of the unpaid
42 balances of the principal (as defined in section 107(3) of this
2025 IN 1174—LS 6725/DI 101 12
1 chapter) which is two thousand dollars ($2,000) or less;
2 (ii) twenty-one percent (21%) per year on that part of the
3 unpaid balances of the principal (as defined in section 107(3)
4 of this chapter) which is more than two thousand dollars
5 ($2,000) but does not exceed four thousand dollars ($4,000);
6 and
7 (iii) fifteen percent (15%) per year on that part of the unpaid
8 balances of the principal (as defined in section 107(3) of this
9 chapter) which is more than four thousand dollars ($4,000); or
10 (b) twenty-five percent (25%) per year on the unpaid balances of
11 the principal (as defined in section 107(3) of this chapter).
12 (3) In the case of a loan agreement entered into before July 1, 2020,
13 this section does not limit or restrict the manner of contracting for the
14 loan finance charge, whether by way of add-on, discount, or otherwise,
15 so long as the rate of the loan finance charge does not exceed that
16 permitted by this section. If the loan is precomputed:
17 (a) the loan finance charge may be calculated on the assumption
18 that all scheduled payments will be made when due; and
19 (b) the effect of prepayment is governed by the provisions on
20 rebate upon prepayment in section 210 of this chapter.
21 After June 30, 2020, a loan agreement may not be entered into for a
22 precomputed supervised loan. The loan finance charge authorized by
23 this section must be contracted for between the lender and the debtor,
24 and must be calculated by applying a rate not exceeding the rate set
25 forth in subsection (2) to unpaid balances of the principal (as defined
26 in section 107(3) of this chapter).
27 (4) The term of a loan for the purposes of this section commences
28 on the date the loan is made. Differences in the lengths of months are
29 disregarded, and a day may be counted as one-thirtieth (1/30) of a
30 month. Subject to classifications and differentiations the lender may
31 reasonably establish, a part of a month in excess of fifteen (15) days
32 may be treated as a full month if periods of fifteen (15) days or less are
33 disregarded and that procedure is not consistently used to obtain a
34 greater yield than would otherwise be permitted.
35 (5) Subject to classifications and differentiations the lender may
36 reasonably establish, the lender may make the same loan finance
37 charge on all principal amounts within a specified range. A loan
38 finance charge does not violate subsection (2) if:
39 (a) when applied to the median amount within each range, it does
40 not exceed the maximum permitted in subsection (2); and
41 (b) when applied to the lowest amount within each range, it does
42 not produce a rate of loan finance charge exceeding the rate
2025 IN 1174—LS 6725/DI 101 13
1 calculated according to subdivision (a) by more than eight percent
2 (8%) of the rate calculated according to subdivision (a).
3 (6) The amounts of two thousand dollars ($2,000) and four thousand
4 dollars ($4,000) in subsection (2) and thirty dollars ($30) in subsection
5 (7) are subject to change pursuant to the provisions on adjustment of
6 dollar amounts (IC 24-4.5-1-106). However, notwithstanding
7 IC 24-4.5-1-106(1), for the adjustment of the amount of thirty dollars
8 ($30), the Reference Base Index to be used is the Index for October
9 1992. Notwithstanding IC 24-4.5-1-106(1), for the adjustment of the
10 amounts of two thousand dollars ($2,000) and four thousand dollars
11 ($4,000), the Reference Base Index to be used is the Index for October
12 2012.
13 (7) With respect to a supervised loan not made pursuant to a
14 revolving loan account, the lender may contract for and receive a
15 minimum loan finance charge of not more than thirty dollars ($30). The
16 minimum loan finance charge allowed under this subsection may be
17 imposed only if the lender does not assess a nonrefundable prepaid
18 finance charge under subsection (8) and:
19 (a) the debtor prepays in full a consumer loan, refinancing, or
20 consolidation, regardless of whether the loan, refinancing, or
21 consolidation is precomputed;
22 (b) the loan, refinancing, or consolidation prepaid by the debtor
23 is subject to a loan finance charge that:
24 (i) is contracted for by the parties; and
25 (ii) does not exceed the rate prescribed in subsection (2); and
26 (c) the loan finance charge earned at the time of prepayment is
27 less than the minimum loan finance charge contracted for under
28 this subsection.
29 (8) Except as provided in subsections (7) and (10)(c), in addition to
30 the loan finance charge provided for in this section and to any other
31 charges and fees permitted by this chapter, the lender may contract for
32 and receive a nonrefundable prepaid finance charge of not more than
33 fifty dollars ($50) if the loan agreement is entered into before July 1,
34 2020, or, if the loan agreement is entered into after June 30, 2020, not
35 more than the following:
36 (a) Seventy-five dollars ($75), in the case of a loan agreement for
37 a principal amount which is two thousand dollars ($2,000) or less.
38 (b) One hundred fifty dollars ($150) in the case of a loan
39 agreement for a principal amount which is more than two
40 thousand dollars ($2,000) but does not exceed four thousand
41 dollars ($4,000).
42 (c) Two hundred dollars ($200) in the case of a loan agreement
2025 IN 1174—LS 6725/DI 101 14
1 for a principal amount which is more than four thousand dollars
2 ($4,000).
3 The amounts in this subsection are not subject to change under
4 IC 24-4.5-1-106.
5 (9) The nonrefundable prepaid finance charge provided for in
6 subsection (8) is not subject to refund or rebate. However, for any
7 supervised loan entered into after June 30, 2020, any amount charged
8 by the lender, other than by a lender that is a depository institution (as
9 defined in IC 24-4.5-1-301.5(12)), under subsection (8) that exceeds
10 the applicable amount permitted by subsection (8) constitutes a
11 violation of this article under IC 24-4.5-6-107.5(l) and is subject to
12 refund. Any amount charged by a depository institution (as defined in
13 IC 24-4.5-1-301.5(12)) under subsection (8) that exceeds the applicable
14 amount set forth in subsection (8) is subject to refund.
15 (10) Notwithstanding subsections (8) and (9), in the case of a
16 supervised loan that is not secured by an interest in land, if a lender
17 retains any part of a nonrefundable prepaid finance charge charged on
18 a loan that is paid in full by a new loan from the same lender, the
19 following apply:
20 (a) If the loan is paid in full by the new loan within three (3)
21 months after the date of the prior loan, the lender may not charge
22 a nonrefundable prepaid finance charge on the new loan, or, in the
23 case of a revolving loan, on the increased credit line.
24 (b) The lender may not assess more than two (2) nonrefundable
25 prepaid finance charges in any twelve (12) month period.
26 (c) Subject to subdivisions (a) and (b), if a supervised loan that is
27 entered into by a lender and a debtor before July 1, 2020, is paid
28 in full by a new supervised loan from the same lender after June
29 30, 2020, the lender may contract for and receive a nonrefundable
30 prepaid finance charge in the amount set forth in subsection (8)
31 for loan agreements entered into after June 30, 2020.
32 (11) In the case of a supervised loan that is secured by an interest in
33 land, this section does not prohibit a lender from contracting for and
34 receiving a fee for preparing deeds, mortgages, reconveyances, and
35 similar documents under section 202(1)(d)(ii) of this chapter, in
36 addition to the nonrefundable prepaid finance charge provided for in
37 subsection (8).
38 SECTION 8. IC 24-4.5-3-508.1 IS ADDED TO THE INDIANA
39 CODE AS A NEW SECTION TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2025]: Sec. 508.1. (1) This section applies
41 only to a supervised loan that:
42 (a) is entered into after June 30, 2025;
2025 IN 1174—LS 6725/DI 101 15
1 (b) is not secured by:
2 (i) an interest in land; or
3 (ii) personal property used or expected to be used as the
4 principal dwelling of the debtor; and
5 (c) is not described in section 508.2 of this chapter.
6 With respect to a supervised loan to which this section applies,
7 including a loan pursuant to a revolving loan account, a supervised
8 lender may contract for and receive a loan finance charge not
9 exceeding that permitted by this section.
10 (2) The loan finance charge, calculated according to the
11 actuarial method, may not exceed the equivalent of the greater of:
12 (a) the total of:
13 (i) thirty-six percent (36%) per year on that part of the
14 unpaid balances of the principal (as defined in section
15 107(3) of this chapter) which is two thousand dollars
16 ($2,000) or less;
17 (ii) twenty-one percent (21%) per year on that part of the
18 unpaid balances of the principal (as defined in section
19 107(3) of this chapter) which is more than two thousand
20 dollars ($2,000) but does not exceed four thousand dollars
21 ($4,000); and
22 (iii) fifteen percent (15%) per year on that part of the
23 unpaid balances of the principal (as defined in section
24 107(3) of this chapter) which is more than four thousand
25 dollars ($4,000); or
26 (b) twenty-five percent (25%) per year on the unpaid balances
27 of the principal (as defined in section 107(3) of this chapter).
28 (3) A loan agreement may not be entered into for a precomputed
29 supervised loan. The loan finance charge authorized by this section
30 must be contracted for between the lender and the debtor, and
31 must be calculated by applying a rate not exceeding the rate set
32 forth in subsection (2) to unpaid balances of the principal (as
33 defined in section 107(3) of this chapter).
34 (4) The term of a loan for the purposes of this section
35 commences on the date the loan is made. Differences in the lengths
36 of months are disregarded, and a day may be counted as
37 one-thirtieth (1/30) of a month. Subject to classifications and
38 differentiations the lender may reasonably establish, a part of a
39 month in excess of fifteen (15) days may be treated as a full month
40 if periods of fifteen (15) days or less are disregarded and that
41 procedure is not consistently used to obtain a greater yield than
42 would otherwise be permitted.
2025 IN 1174—LS 6725/DI 101 16
1 (5) Subject to classifications and differentiations the lender may
2 reasonably establish, the lender may make the same loan finance
3 charge on all principal amounts within a specified range. A loan
4 finance charge does not violate subsection (2) if:
5 (a) when applied to the median amount within each range, it
6 does not exceed the maximum permitted in subsection (2); and
7 (b) when applied to the lowest amount within each range, it
8 does not produce a rate of loan finance charge exceeding the
9 rate calculated according to subdivision (a) by more than
10 eight percent (8%) of the rate calculated according to
11 subdivision (a).
12 (6) The amounts of two thousand dollars ($2,000) and four
13 thousand dollars ($4,000) in subsection (2) and thirty dollars ($30)
14 in subsection (7) are subject to change pursuant to the provisions
15 on adjustment of dollar amounts (IC 24-4.5-1-106). However,
16 notwithstanding IC 24-4.5-1-106(1), for the adjustment of the
17 amount of thirty dollars ($30), the Reference Base Index to be used
18 is the Index for October 1992. Notwithstanding IC 24-4.5-1-106(1),
19 for the adjustment of the amounts of two thousand dollars ($2,000)
20 and four thousand dollars ($4,000), the Reference Base Index to be
21 used is the Index for October 2012.
22 (7) With respect to a supervised loan not made pursuant to a
23 revolving loan account, the lender may contract for and receive a
24 minimum loan finance charge of not more than thirty dollars ($30).
25 The minimum loan finance charge allowed under this subsection
26 may be imposed only if the lender does not assess a nonrefundable
27 prepaid finance charge under subsection (9) and:
28 (a) the debtor prepays in full a supervised loan, refinancing,
29 or consolidation;
30 (b) the loan, refinancing, or consolidation prepaid by the
31 debtor is subject to a loan finance charge that:
32 (i) is contracted for by the parties; and
33 (ii) does not exceed the rate prescribed in subsection (2);
34 and
35 (c) the loan finance charge earned at the time of prepayment
36 is less than the minimum loan finance charge contracted for
37 under this subsection.
38 (8) In addition to the loan finance charge provided for in this
39 section and any other charges and fees permitted by this chapter,
40 the lender may contract for and receive a monthly service fee if:
41 (a) the amount of principal (as defined in section 107(3) of this
42 chapter) originally contracted for does not exceed five
2025 IN 1174—LS 6725/DI 101 17
1 thousand dollars ($5,000); and
2 (b) the monthly service fee, based on the amount of principal
3 (as defined in section 107(3) of this chapter) originally
4 contracted for, does not exceed the following:
5 (i) Eight percent (8%) per month for an original principal
6 amount that is two thousand five hundred dollars ($2,500)
7 or less.
8 (ii) Six percent (6%) per month for an original principal
9 amount that is more than two thousand five hundred
10 dollars ($2,500) but does not exceed four thousand dollars
11 ($4,000).
12 (iii) Five percent (5%) per month for an original principal
13 amount that is more than four thousand dollars ($4,000)
14 but does not exceed five thousand dollars ($5,000).
15 (9) Except as provided in subsection (7), in addition to the loan
16 finance charge provided for in this section and to any other charges
17 and fees permitted by this chapter, the lender may contract for and
18 receive a nonrefundable prepaid finance charge of not more than
19 the following:
20 (a) Seventy-five dollars ($75), in the case of a loan agreement
21 for a principal amount that is two thousand dollars ($2,000)
22 or less.
23 (b) One hundred fifty dollars ($150) in the case of a loan
24 agreement for a principal amount that is more than two
25 thousand dollars ($2,000) but does not exceed four thousand
26 dollars ($4,000).
27 (c) Two hundred dollars ($200) in the case of a loan
28 agreement for a principal amount that is more than four
29 thousand dollars ($4,000).
30 The amounts in this subsection are not subject to change under
31 IC 24-4.5-1-106.
32 (10) The nonrefundable prepaid finance charge provided for in
33 subsection (9) is not subject to refund or rebate. However, any
34 amount charged by the lender, other than by a lender that is a
35 depository institution (as defined in IC 24-4.5-1-301.5(12)), under
36 subsection (9) that exceeds the applicable amount permitted by
37 subsection (9) constitutes a violation of this article under
38 IC 24-4.5-6-107.5(l) and is subject to refund. Any amount charged
39 by a depository institution (as defined in IC 24-4.5-1-301.5(12))
40 under subsection (9) that exceeds the applicable amount set forth
41 in subsection (9) is subject to refund.
42 (11) Notwithstanding subsections (9) and (10), in the case of a
2025 IN 1174—LS 6725/DI 101 18
1 supervised loan to which this section applies, if a lender retains any
2 part of a nonrefundable prepaid finance charge charged on a
3 supervised loan that is paid in full by a new loan from the same
4 lender, the following apply:
5 (a) If the loan is paid in full by the new loan within three (3)
6 months after the date of the prior loan, the lender may not
7 charge a nonrefundable prepaid finance charge on the new
8 loan, or, in the case of a revolving loan, on the increased credit
9 line.
10 (b) The lender may not assess more than two (2)
11 nonrefundable prepaid finance charges in any twelve (12)
12 month period.
13 (c) Subject to subdivisions (a) and (b), if a supervised loan that
14 is entered into by a lender and a debtor under section 508 of
15 this chapter before July 1, 2020, is paid in full by a new
16 supervised loan under this section from the same lender after
17 June 30, 2025, the lender may contract for and receive a
18 nonrefundable prepaid finance charge in the amount set forth
19 in subsection (9).
20 SECTION 9. IC 24-4.5-3-508.2 IS ADDED TO THE INDIANA
21 CODE AS A NEW SECTION TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2025]: Sec. 508.2. (1) This section applies
23 only to a supervised loan that:
24 (a) is entered into after June 30, 2025;
25 (b) is not secured by:
26 (i) an interest in land; or
27 (ii) personal property used or expected to be used as the
28 principal dwelling of the debtor;
29 (c) has a principal (as defined in section 107(3) of this chapter)
30 that is more than five thousand dollars ($5,000) but does not
31 exceed twenty-five thousand dollars ($25,000);
32 (d) is for a term of at least six (6) months;
33 (e) is repayable in monthly installments;
34 (f) requires the lender to report the borrower's payments on
35 the loan to at least one (1) consumer reporting agency that
36 compiles and maintains files on consumers on a nationwide
37 basis (as defined in 15 U.S.C. 1681a(p)), as set forth in
38 subsection (9); and
39 (g) includes a consumer credit education program that is
40 offered to the borrower at no cost at or before consummation
41 of the loan, as described in subsection (10).
42 (2) With respect to a supervised loan to which this section
2025 IN 1174—LS 6725/DI 101 19
1 applies, including a loan pursuant to a revolving loan account, a
2 supervised lender may contract for and receive a loan finance
3 charge not exceeding thirty-six percent (36%) per year on the
4 unpaid balances of the principal (as defined in section 107(3) of this
5 chapter).
6 (3) A loan agreement may not be entered into for a precomputed
7 supervised loan. The loan finance charge authorized by this section
8 must be contracted for between the lender and the debtor, and
9 must be calculated by applying a rate not exceeding the rate set
10 forth in subsection (2) to unpaid balances of the principal (as
11 defined in section 107(3) of this chapter).
12 (4) The term of a loan for the purposes of this section
13 commences on the date the loan is made. Differences in the lengths
14 of months are disregarded, and a day may be counted as
15 one-thirtieth (1/30) of a month. Subject to classifications and
16 differentiations the lender may reasonably establish, a part of a
17 month in excess of fifteen (15) days may be treated as a full month
18 if periods of fifteen (15) days or less are disregarded and that
19 procedure is not consistently used to obtain a greater yield than
20 would otherwise be permitted.
21 (5) With respect to a supervised loan not made pursuant to a
22 revolving loan account, the lender may contract for and receive a
23 minimum loan finance charge of not more than thirty dollars ($30).
24 The minimum loan finance charge allowed under this subsection
25 may be imposed only if the lender does not assess a nonrefundable
26 prepaid finance charge under subsection (6) and:
27 (a) the debtor prepays in full a supervised loan, refinancing,
28 or consolidation;
29 (b) the loan, refinancing, or consolidation prepaid by the
30 debtor is subject to a loan finance charge that:
31 (i) is contracted for by the parties; and
32 (ii) does not exceed the rate prescribed in subsection (2);
33 and
34 (c) the loan finance charge earned at the time of prepayment
35 is less than the minimum loan finance charge contracted for
36 under this subsection.
37 The amounts of five thousand dollars ($5,000) and twenty-five
38 thousand dollars ($25,000) in subsection (1) and thirty dollars ($30)
39 in this subsection are subject to change pursuant to the provisions
40 on adjustment of dollar amounts (IC 24-4.5-1-106). However,
41 notwithstanding IC 24-4.5-1-106(1), for the adjustment of the
42 amount of thirty dollars ($30), the Reference Base Index to be used
2025 IN 1174—LS 6725/DI 101 20
1 is the Index for October 1992. Notwithstanding IC 24-4.5-1-106(1),
2 for the adjustment of the amounts of five thousand dollars ($5,000)
3 and twenty-five thousand dollars ($25,000), the Reference Base
4 Index to be used is the Index for October 2012.
5 (6) Except as provided in subsection (5), in addition to the loan
6 finance charge provided for in this section and to any other charges
7 and fees permitted by this chapter, the lender may contract for and
8 receive a nonrefundable prepaid finance charge of not more than
9 two hundred dollars ($200). The amount of two hundred dollars
10 ($200) in this subsection is not subject to change under
11 IC 24-4.5-1-106.
12 (7) The nonrefundable prepaid finance charge provided for in
13 subsection (6) is not subject to refund or rebate. However, any
14 amount charged by the lender, other than by a lender that is a
15 depository institution (as defined in IC 24-4.5-1-301.5(12)), under
16 subsection (6) that exceeds the amount permitted by subsection (6)
17 constitutes a violation of this article under IC 24-4.5-6-107.5(l) and
18 is subject to refund. Any amount charged by a depository
19 institution (as defined in IC 24-4.5-1-301.5(12)) under subsection
20 (6) that exceeds the amount set forth in subsection (6) is subject to
21 refund.
22 (8) Notwithstanding subsections (6) and (7), in the case of a
23 supervised loan to which this section applies, if a lender retains any
24 part of a nonrefundable prepaid finance charge charged on a
25 supervised loan that is paid in full by a new loan from the same
26 lender, the following apply:
27 (a) If the loan is paid in full by the new loan within three (3)
28 months after the date of the prior loan, the lender may not
29 charge a nonrefundable prepaid finance charge on the new
30 loan, or, in the case of a revolving loan, on the increased credit
31 line.
32 (b) The lender may not assess more than two (2)
33 nonrefundable prepaid finance charges in any twelve (12)
34 month period.
35 (c) Subject to subdivisions (a) and (b), if a supervised loan that
36 is entered into by a lender and a debtor under section 508 of
37 this chapter before July 1, 2020, is paid in full by a new
38 supervised loan from the same lender under this section after
39 June 30, 2025, the lender may contract for and receive a
40 nonrefundable prepaid finance charge in the amount set forth
41 in subsection (6).
42 (9) With respect to a supervised loan made under this section,
2025 IN 1174—LS 6725/DI 101 21
1 a lender must report the borrower's payments on the supervised
2 loan to at least one (1) consumer reporting agency that compiles
3 and maintains files on consumers on a nationwide basis (as defined
4 in 15 U.S.C. 1681a(p)) in accordance with the federal Fair Credit
5 Reporting Act (15 U.S.C. 1681 et seq.).
6 (10) At or before the consummation of a supervised loan to
7 which this section applies, the lender shall offer to the borrower, at
8 no cost to the borrower, a consumer credit education program
9 provided by the lender or a third party provider. The program
10 may be provided in written form or through an online platform
11 and may include instruction on one (1) or more of the following
12 topics:
13 (a) The importance of and methods for establishing a
14 household budget.
15 (b) The impact and value of and ways to improve a credit
16 score.
17 (c) The importance of and methods for establishing household
18 savings.
19 (d) How to obtain a free copy of a consumer report (as defined
20 in 15 U.S.C. 1681a(d)).
21 (e) How to dispute an error in a consumer report (as defined
22 in 15 U.S.C. 1681a(d)).
23 (f) Ways to manage and prevent identity theft.
24 (g) Other similar topics concerning consumer credit or
25 personal finance.
26 A lender may not require a borrower to participate in a consumer
27 credit education program as a condition for the extension of credit
28 under this section.
29 SECTION 10. IC 24-4.5-4-107, AS AMENDED BY P.L.85-2020,
30 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2025]: Sec. 107. Maximum Charge by Creditor for Insurance
32 - (1) Except as provided in subsection (2), if a creditor contracts for or
33 receives a separate charge for insurance, the amount charged to the
34 debtor for the insurance may not exceed the premium to be charged by
35 the insurer, as computed at the time the charge to the debtor is
36 determined, conforming to any rate filings required by law and made
37 by the insurer with the insurance commissioner.
38 (2) A creditor who provides consumer credit insurance in relation
39 to a revolving charge account (as defined in IC 24-4.5-2-108) or
40 revolving loan account (as defined in IC 24-4.5-3-108) may calculate
41 the charge to the debtor in each billing cycle by applying the current
42 premium rate to one (1) of the following:
2025 IN 1174—LS 6725/DI 101 22
1 (a) The average daily unpaid balance of the debt in the cycle.
2 (b) The unpaid balance of the debt or a median amount within a
3 specified range of unpaid balances of debt on approximately the
4 same day of the cycle. The day of the cycle need not be the day
5 used in calculating the credit service charge (IC 24-4.5-2-201(6))
6 or loan finance charge (IC 24-4.5-3-201, and IC 24-4.5-3-508),
7 IC 24-4.5-3-508, IC 24-4.5-3-508.1, or IC 24-4.5-3-508.2, as
8 applicable), but the specified range shall be the range used for
9 that purpose.
10 (c) The unpaid balances of principal calculated according to the
11 actuarial method.
12 (d) The amount of the insurance benefit for the cycle.
13 SECTION 11. IC 24-4.5-7-102, AS AMENDED BY P.L.69-2018,
14 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 102. (1) Except as otherwise provided, all
16 provisions of this article applying to consumer loans, including
17 IC 24-4.5-3-502.2, apply to small loans, as defined in this chapter.
18 (2) Subject to subsection (7), a person may not regularly engage in
19 Indiana in any of the following actions unless the department first
20 issues to the person a license under this chapter:
21 (a) The making of small loans.
22 (b) Taking assignments of small loans.
23 (c) Undertaking the direct collection of payments from or the
24 enforcement of rights against debtors arising from small loans.
25 (3) Subject to subsection (4), a person that seeks licensure under
26 this chapter:
27 (a) shall apply to the department for a license in the form and
28 manner prescribed by the department; and
29 (b) is subject to the same licensure requirements and procedures
30 as an applicant for a license to make consumer loans (other than
31 mortgage transactions) under IC 24-4.5-3-502.
32 (4) A person that seeks to make, take assignments of, or undertake
33 the direct collection of payments from or the enforcement of rights
34 against debtors arising from both:
35 (a) small loans under this chapter; and
36 (b) consumer loans (other than mortgage transactions) that are not
37 small loans;
38 must obtain a separate license from the department for each type of
39 loan, as described in IC 24-4.5-3-502(5).
40 (5) This chapter applies to:
41 (a) a lender;
42 (b) a bank, savings association, credit union, or other state or
2025 IN 1174—LS 6725/DI 101 23
1 federally regulated financial institution except those that are
2 specifically exempt regarding limitations on interest rates and
3 fees; or
4 (c) a person, if the department determines that a transaction is:
5 (i) in substance a disguised loan; or
6 (ii) the application of subterfuge for the purpose of avoiding
7 this chapter.
8 (6) A loan that:
9 (a) does not qualify as a small loan under section 104 of this
10 chapter;
11 (b) is for a term shorter than that specified in section 401(1) of
12 this chapter; or
13 (c) is made in violation of section 201, 401, 402, 404, or 410 of
14 this chapter;
15 is subject to this article. The department may conform the loan finance
16 charge for a loan described in this subsection to the limitations set forth
17 in IC 24-4.5-3-508(2). IC 24-4.5-3-508.1(2).
18 (7) Notwithstanding IC 24-4.5-1-301.5, for purposes of subsection
19 (2), a person "regularly engages" in any of the activities described in
20 subsection (2) with respect to a small loan if the person:
21 (a) performed any of the activities described in subsection (2)
22 with respect to a small loan at least one (1) time in the preceding
23 calendar year; or
24 (b) performs or will perform any of the activities described in
25 subsection (2) with respect to a small loan at least one (1) time in
26 the current calendar year if the person did not perform any of the
27 activities described in subsection (2) with respect to a small loan
28 at least one (1) time in the preceding calendar year.
29 SECTION 12. IC 24-4.5-7-411 IS AMENDED TO READ AS
30 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 411. Finance charges
31 made in compliance with this chapter are exempt from:
32 (a) IC 24-4.5-3-508;
33 (b) IC 24-4.5-3-508.1; and
34 (c) IC 35-45-7.
35 SECTION 13. IC 28-7-5-28 IS AMENDED TO READ AS
36 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 28. (a) The maximum
37 rate of interest charged by pawnbrokers shall be the same as the
38 maximum loan finance charge for supervised lenders loans under
39 IC 24-4.5-3-508(2). IC 24-4.5-3-508.1(2). For purposes of this
40 subsection:
41 (1) the term of a loan commences on the date on which the loan
42 is made;
2025 IN 1174—LS 6725/DI 101 24
1 (2) differences in lengths of months are disregarded; and
2 (3) each day is counted as one-thirtieth (1/30) of a month.
3 The minimum term of a loan made by a pawnbroker is one (1) month.
4 However, on loans paid in full within the first month, the pawnbroker
5 may charge one (1) month's interest.
6 (b) Interest shall not be deducted in advance, neither shall the
7 pawnbroker induce or permit any borrower to split up or divide any
8 loan or loans for the purpose of evading any provisions of this chapter.
9 (c) If a pawnbroker charges or receives interest in excess of that
10 provided in this section, or makes any charges not authorized by this
11 chapter, the pawnbroker shall forfeit principal and interest and return
12 the pledge upon demand of the pledger and surrender of the pawn
13 ticket without the principal or interest. If such excessive or
14 unauthorized charges have been paid by the pledger, the pledger may
15 recover the same, including the principal if paid, in a civil action
16 against the pawnbroker.
17 SECTION 14. IC 35-45-7-2, AS AMENDED BY P.L.158-2013,
18 SECTION 536, IS AMENDED TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2025]: Sec. 2. A person who, in exchange for
20 the loan of any property, knowingly or intentionally receives or
21 contracts to receive from another person any consideration, at a rate
22 greater than two (2) times the rate specified in IC 24-4.5-3-508(2)(a)(i),
23 IC 24-4.5-3-508.2(2), commits loansharking, a Level 6 felony.
24 However, loansharking is a Level 5 felony if force or the threat of force
25 is used to collect or to attempt to collect any of the property loaned or
26 any of the consideration for the loan.
2025 IN 1174—LS 6725/DI 101