HLS 12RS-890 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 424
BY REPRESENTATIVE WESLEY BISHOP
CREDIT/CONSUMER LOANS: Provides for changes to interest rates on deferred
presentments and small loans
AN ACT1
To amend and reenact R.S. 9:3578.4(A), relative to interest rates on deferred presentments2
and small loans; to decrease the maximum interest rate on deferred presentments and3
small loans; to repeal the delinquent interest rates for deferred presentments and4
small loans; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 9:3578.4(A) is hereby amended and reenacted to read as follows: 7
ยง3578.4. Finance charge and fees8
A.(1) In conjunction with a deferred presentment transaction or small loan,9
a licensee may charge a fee not to exceed sixteen and seventy-five one hundredths10
fifteen percent of the face amount of the check issued or in the case of a small loan,11
the equivalent rate of interest, provided however that such fee or interest does not12
exceed forty-five dollars, regardless of the name or type of charge.13
(2) However, if the loan remains unpaid at contractual maturity, the licensee14
may charge one of the following:15
(a) An amount equal to the rate of thirty-six percent per annum for a period16
not to exceed one year and beginning one year after contractual maturity, the rate17
shall not exceed eighteen percent per annum.18 HLS 12RS-890 ORIGINAL
HB NO. 424
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) A a one-time delinquency charge as authorized in R.S. 9:3527(A)(1).1
* * *2
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)]
Wesley Bishop HB No. 424
Abstract: Decreases the maximum interest rate on deferred presentments and small loans
and repeals the delinquent interest rates for deferred presentments and small loans.
Present law provides that in conjunction with a deferred presentment or small loan, a lender
may charge a fee not to exceed 16.75% of the face amount of the check issued or, in the case
of a small loan, the equivalent rate of interest, provided however that such fee or interest
does not exceed $45.
Proposed law decreases the maximum interest rate from 16.75% to 15%.
Present law provides that, if the loan remains unpaid at contractual maturity, the lender may
charge one of the following:
(1)An amount equal to the rate of 36% per annum for a period not to exceed one year
and beginning one year after contractual maturity, a rate not to exceed 18% per
annum.
(2)A one-time delinquency charge of 5% of the unpaid amount of the delinquent
installment, or $10, whichever is greater.
Proposed law provides that, if the loan remains unpaid at contractual maturity, the lender
may charge a one-time delinquency charge of 5% of the unpaid amount of the delinquent
installment, or $10, whichever is greater. Proposed law repeals the authority to charge a
delinquent interest rate of 36% for deferred presentments and small loans.
(Amends R.S. 9:3578.4(A))