Relating to certain extensions of consumer credit facilitated by a credit access business for certain military personnel or their dependents.
Impact
The enactment of HB3019 is expected to have significant implications for state financial laws related to consumer credit. By formalizing the terms under which credit access businesses can assist military service members, the bill aligns with federal regulations and aims to enhance consumer protection. It seeks to prevent predatory lending practices that disproportionately affect military families who may require short-term financial relief. The legislation also reassures stakeholders that military personnel will have structured and legally compliant avenues for obtaining consumer credit.
Summary
House Bill 3019 aims to regulate the provisions of consumer credit extended by credit access businesses to military personnel and their dependents. The legislation specifically addresses the terms and limitations on deferred presentment transactions and motor vehicle title loans. Notably, the bill limits the duration of these loans to 90 days for deferred presentment transactions and 180 days for motor vehicle title loans, providing clearer parameters for financial institutions dealing with service members and their families.
Sentiment
The sentiment surrounding HB3019 appears to be largely positive, particularly among advocacy groups focused on the well-being of military families. Proponents believe that the limitations set forth in the bill provide essential protections for vulnerable service members who often find themselves in precarious financial situations. However, there may be some opposition from credit access businesses concerned about the constraints on their operations and profitability that these regulations impose.
Contention
While HB3019 has positive support aimed at enhancing the welfare of military families, contention exists regarding the implications for credit access businesses who might find the regulations restrictive. The debate centers on the balance between consumer protection and the operational flexibility of financial institutions. Additionally, the effective date of the bill ensures that current agreements are honored, which presents a dual-edge for businesses adapting to the new law while adhering to previous contractual obligations.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to a restriction on total charges charged for certain extensions of consumer credit that are facilitated by credit access businesses and entered into by consumers residing in disaster areas.
Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.