To enact sections 1321.90 to 1321.94 of the Revised Code relative to the extension of consumer credit to members and veterans of the U.S. armed forces, including the reserves, or of the national guard, and to members of their immediate families.

Section 1.  That sections 1321.90, 1321.91, 1321.92, 1321.93, and 1321.94 of the Revised Code be enacted to read as follows:

Sec. 1321.90.  As used in sections 1321.90 to 1321.94 of the Revised Code:

(A) "Consumer credit" means credit offered or extended to a covered borrower primarily for personal, family, or household purposes. "Consumer credit" does not include any of the following:

(1) Any credit transaction secured by an interest in the covered borrower's dwelling, including a transaction to finance the purchase or initial construction of a dwelling, any refinance transaction, home equity loan or line of credit, or reverse mortgage;

(2) Any credit transaction that is expressly intended to finance the purchase of a motor vehicle when the credit is secured by the vehicle being purchased;

(3) Any credit transaction that is expressly intended to finance the purchase of personal property when the credit is secured by the property being purchased.

(B) "Covered borrower" means a person who is a member or veteran of the armed forces of the United States, including reserve components thereof, or of the national guard, and any member of the person's immediate family as defined in section 102.01 of the Revised Code.

(C) "Creditor" means a person that is engaged in the business of extending consumer credit or an assignee of such a person with respect to any consumer credit extended. "Creditor" does not include a national or state-chartered bank, savings bank, savings and loan association, or credit union.

Sec. 1321.91.  With respect to any extension of consumer credit to a covered borrower, a creditor shall provide to the borrower a written disclosure form containing all of the following before the borrower becomes obligated on the transaction:

(A) The rate of interest applicable to the extension of credit as an annual percentage rate;

(B) The total amount of fees and charges the borrower will be required to pay in connection with the extension of credit;

(C) A statement, printed in boldface type of the minimum size of ten points, as follows: "WARNING: The cost of this loan is higher than the average cost charged by financial institutions on substantially similar loans."

Sec. 1321.92.  Notwithstanding any other provision of the Revised Code to the contrary, a creditor may charge, collect, and receive only the following fees and charges in connection with an extension of consumer credit to a covered borrower:

(A) Interest calculated in compliance with 15 U.S.C. 1606, and not exceeding an annual percentage rate of twenty-eight per cent;

(B) Damages, costs, and disbursements to which the creditor may become entitled to by law in connection with any civil action to collect a loan after default.

Sec. 1321.93.  A creditor shall not extend consumer credit to a covered borrower if any of the following applies:

(A) The borrower is required to waive the borrower's right to legal recourse under any otherwise applicable provision of state or federal law, including any provision of the "Servicemembers Civil Relief Act," 117 Stat. 2835, 50 U.S.C. App. 501.

(B) The creditor requires the borrower to submit to arbitration or imposes onerous legal notice provisions in the case of a dispute.

(C) The creditor demands unreasonable notice from the borrower as a condition for legal action.

(D) The creditor uses a check or other method of access to a deposit, savings, or other financial account maintained by the borrower.

(E) The creditor knows there is no reasonable probability of payment of the obligation by the borrower.

(F) The borrower has received two extensions of consumer credit from a creditor within the immediately preceding sixty-day period.

Sec. 1321.94.  The superintendent of financial institutions shall, in accordance with Chapter 119. of the Revised Code, adopt any rules necessary to implement and enforce sections 1321.90 to 1321.93 of the Revised Code, including a rule setting forth the maximum amount a covered borrower may be indebted to creditors.