LEGISLATIVE


LEGISLATIVE CHANGES EFFECTIVE JULY 1, 2019

by - Posted 1 year ago

THAT YOU SHOULD KNOW

H.B. 1237 – DOCUMENT FEES

Retroactive to July 1, 2013, provides that it is an unfair practice for a dealer to charge a document preparation fee in excess of $ 200, which may be adjusted annually. The fee must be included in the advertised price of the vehicle and affirmatively disclosed in writing during negotiations and as a separate line item on a bill of sale of other purchase contract.

H.B. 1136 – DELINQUENCY CHARGES AND LATE FEES

The new law replaces the authorized $5 delinquency charge that is currently indexed to

$19, for consumer credit sales and consumer loans with a non-indexed "flat" delinquency charge permitted to be contracted for after July 1, 2019 of:

*$5, if installments or minimum payments are due every 14 days or less and the installment is not paid within 10 days after its scheduled due date;

*$25, if installments are due every 15 days or more and the installment is not paid within 10 days after its scheduled due date; or

*$25, on a single installment due at least 30 days after the sale or loan is made if the

installment is not paid within 10 days after its scheduled due date.

The bill also amends the IUCCC's late charge provisions to prohibit a creditor from collecting a late charge on any payment that is paid within 10 days after its scheduled due date and is otherwise a full payment of the payment due for the applicable installment period, if the only delinquency with respect to a consumer credit sale or a consumer loan is attributable to a delinquency charge for an earlier installment.