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| To enact sections 1321.90 to 1321.94 of the Revised | 1 |
| Code relative to the extension of consumer credit | 2 |
| to members and veterans of the U.S. armed forces, | 3 |
| including the reserves, or of the national guard, | 4 |
| and to members of their immediate families. | 5 |
| Section 1. That sections 1321.90, 1321.91, 1321.92, 1321.93, | 6 |
| and 1321.94 of the Revised Code be enacted to read as follows: | 7 |
| Sec. 1321.90. As used in sections 1321.90 to 1321.94 of the | 8 |
| Revised Code: | 9 |
| (A) "Consumer credit" means credit offered or extended to a | 10 |
| covered borrower primarily for personal, family, or household | 11 |
| purposes. "Consumer credit" does not include any of the following: | 12 |
| (1) Any credit transaction secured by an interest in the | 13 |
| covered borrower's dwelling, including a transaction to finance | 14 |
| the purchase or initial construction of a dwelling, any refinance | 15 |
| transaction, home equity loan or line of credit, or reverse | 16 |
| mortgage; | 17 |
| (2) Any credit transaction that is expressly intended to | 18 |
| finance the purchase of a motor vehicle when the credit is secured | 19 |
| by the vehicle being purchased; | 20 |
| (3) Any credit transaction that is expressly intended to | 21 |
| finance the purchase of personal property when the credit is | 22 |
| secured by the property being purchased. | 23 |
| (B) "Covered borrower" means a person who is a member or | 24 |
| veteran of the armed forces of the United States, including | 25 |
| reserve components thereof, or of the national guard, and any | 26 |
| member of the person's immediate family as defined in section | 27 |
| 102.01 of the Revised Code. | 28 |
| (C) "Creditor" means a person that is engaged in the business | 29 |
| of extending consumer credit or an assignee of such a person with | 30 |
| respect to any consumer credit extended. "Creditor" does not | 31 |
| include a national or state-chartered bank, savings bank, savings | 32 |
| and loan association, or credit union. | 33 |
| Sec. 1321.91. With respect to any extension of consumer | 34 |
| credit to a covered borrower, a creditor shall provide to the | 35 |
| borrower a written disclosure form containing all of the following | 36 |
| before the borrower becomes obligated on the transaction: | 37 |
| (A) The rate of interest applicable to the extension of | 38 |
| credit as an annual percentage rate; | 39 |
| (B) The total amount of fees and charges the borrower will be | 40 |
| required to pay in connection with the extension of credit; | 41 |
| (C) A statement, printed in boldface type of the minimum size | 42 |
| of ten points, as follows: "WARNING: The cost of this loan is | 43 |
| higher than the average cost charged by financial institutions on | 44 |
| substantially similar loans." | 45 |
| Sec. 1321.92. Notwithstanding any other provision of the | 46 |
| Revised Code to the contrary, a creditor may charge, collect, and | 47 |
| receive only the following fees and charges in connection with an | 48 |
| extension of consumer credit to a covered borrower: | 49 |
| (A) Interest calculated in compliance with 15 U.S.C. 1606, | 50 |
| and not exceeding an annual percentage rate of twenty-eight per | 51 |
| cent; | 52 |
| (B) Damages, costs, and disbursements to which the creditor | 53 |
| may become entitled to by law in connection with any civil action | 54 |
| to collect a loan after default. | 55 |
| Sec. 1321.93. A creditor shall not extend consumer credit to | 56 |
| a covered borrower if any of the following applies: | 57 |
| (A) The borrower is required to waive the borrower's right to | 58 |
| legal recourse under any otherwise applicable provision of state | 59 |
| or federal law, including any provision of the "Servicemembers | 60 |
| Civil Relief Act," 117 Stat. 2835, 50 U.S.C. App. 501. | 61 |
| (B) The creditor requires the borrower to submit to | 62 |
| arbitration or imposes onerous legal notice provisions in the case | 63 |
| of a dispute. | 64 |
| (C) The creditor demands unreasonable notice from the | 65 |
| borrower as a condition for legal action. | 66 |
| (D) The creditor uses a check or other method of access to a | 67 |
| deposit, savings, or other financial account maintained by the | 68 |
| borrower. | 69 |
| (E) The creditor knows there is no reasonable probability of | 70 |
| payment of the obligation by the borrower. | 71 |
| (F) The borrower has received two extensions of consumer | 72 |
| credit from a creditor within the immediately preceding sixty-day | 73 |
| period. | 74 |
| Sec. 1321.94. The superintendent of financial institutions | 75 |
| shall, in accordance with Chapter 119. of the Revised Code, adopt | 76 |
| any rules necessary to implement and enforce sections 1321.90 to | 77 |
| 1321.93 of the Revised Code, including a rule setting forth the | 78 |
| maximum amount a covered borrower may be indebted to creditors. | 79 |