HLS 11RS-46 ORIGINAL
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2011
HOUSE BILL NO. 183
BY REPRESENTATIVE ARNOLD
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CREDIT/CONSUMER: Provides relative to the rebate of prepaid finance charges
AN ACT1
To amend and reenact R.S. 9:3532(A), relative to the prepayment of consumer credit2
transactions; to provide for a rebate of prepaid finance charges in the amount of ten3
dollars or greater; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:3532(A) is hereby amended and reenacted to read as follows: 6
ยง3532. Rebate upon prepayment7
A. Upon prepayment in full of a precomputed consumer credit transaction,8
the extender of credit shall refund unearned loan finance charges or credit service9
charges and such refund shall represent at least as great a proportion of the loan10
finance charge or credit service charge after first deducting from such charge a11
prepayme nt charge of not more than twenty-five dollars as the sum of the monthly12
time balances beginning one month after the month in which prepayment is made,13
bears to the sum of all the monthly time balances under the schedule of payments in14
the contract; this method of rebate upon prepayment is commonly referred to as the15
"Rule of 78's" or the "Sum of Digits" rebate method. If more than one-half of the16
term of the installment contract has elapsed, the rebate shall be computed without17
deducting a prepayment charge. For the purposes of rebate upon prepayment,18
deferral charges are not required to be rebated. No rebate less than one dollar, ten19
dollars, or to the extent provided for by federal law , is required.20
* * *21 HLS 11RS-46 ORIGINAL
HB NO. 183
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Arnold HB No. 183
Abstract: Increases the minimum amount of prepaid finance charges that must be refunded
to the consumer.
Present law requires, upon prepayment in full of a precomputed consumer credit transaction,
the extender of credit to refund unearned loan finance charges or credit service charges.
Proposed law maintains present law.
Present law further provides that no rebate less than $1, or to the extent provided for by
federal law, is required.
Proposed law changes the minimum amount of a rebate from $1 to $10.
(Amends R.S. 9:3532(A))