HSB 69

This bill relates to service charges on consumer credit transactions. Current law authorizes a creditor to contract for and receive a service charge in an amount not to exceed the lesser of percent of the amount financed or $30 for an interest-bearing consumer credit transaction. Additionally, current law prohibits a creditor from collecting a minimum charge upon prepayment of a consumer credit transaction if the creditor collected a service charge in association with an interest-bearing consumer credit transaction. The bill strikes from both of these provisions the requirement that the consumer credit transaction bear interest.