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H. B. No. 682 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Representatives Pillich, Lundy
Cosponsors:
Representatives Antonio, Ashford, Barborak, Sheehy, Fedor, Hagan, R.
A BILL
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
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.
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