Kansas House Bill HB2812

Kansas 2023-2024 Regular Session

• Introduced: 2/20/24
• Refer: 2/20/24
• Failed: 4/30/24

Caption

Modifying certain terms, definitions, deadlines and provisions contained in the uniform consumer credit code and transferring certain mortgage provisions from the uniform consumer credit code to the Kansas mortgage business act.

Impact

If enacted, HB 2812 would markedly impact consumer lending practices across Kansas. The adjustments in finance charge limits and repayment terms are intended to provide more flexible and consumer-friendly lending options. By increasing thresholds for consumer loans, the bill aims to expand access to credit for more individuals, which could stimulate economic activity. Additionally, the stricter regulations surrounding consumer credit insurance and the provisions for credit card surcharges will likely enhance consumer protections and ensure that borrowers are more informed about their loans.

Summary

House Bill 2812 addresses significant reforms to the Kansas mortgage business act and updates the uniform consumer credit code. The bill defines terms and conditions for consumer loans, modifies finance charges, and clarifies the requirements for supervised lenders. Notably, the bill seeks to modernize the regulatory framework to better protect consumers while facilitating financial transactions. Changes include raising thresholds for certain loans and amending regulations on insurance associated with credit transactions, all aimed at bolstering consumer rights in credit financing.

Contention

Debate surrounding HB 2812 has uncovered various points of contention, particularly about the potential effects on both lenders and consumers. Opponents argue that while the bill aims to protect consumers, the amendments might lead to unintended consequences, such as higher costs for credit due to increased liabilities for lenders. Conversely, supporters believe that the reforms will simplify the consumer credit processes and ultimately help vulnerable consumers by providing clearer information and protection against discriminatory lending practices. Stakeholders in the financial sector have expressed concerns that the bill may impose overly complex regulations that could hinder their operations.