Relating to interest rates and charges on regulated loans, and consumer credit transaction service charges

This bill relates to interest rates and charges on regulated loans, and consumer credit transaction service charges. The bill eliminates provisions under current law relating to the superintendent of banking’s investigations of the conditions of regulated loans, and authority to redetermine and refix the maximum rate of interest or charges on regulated loans. The bill eliminates provisions under current law establishing the rate of interest or charges upon the class or classes of regulated loans, and instead sets the rate of interest or charges for all regulated loans at 3 percent per month. Under current law, for a consumer credit transaction, in addition to finance charges, a creditor may contract for and receive a service charge in an amount not to exceed the lesser of 10 percent of the amount financed or $30. Under the bill, such service charge shall not exceed the lesser of 10 percent of the amount financed or $100.