HB 5294

Abstract

Amends the Interest Act. Provides limitations for the increase in the annual percentage rate of interest for credit card accounts under revolving credit arrangements until after the listed time periods for the required notices. Provides that, in the case of any credit card account under a revolving credit arrangement, no fee, including any annual fee, late payment fee, or over-the-limit fee, may be imposed on the account before the end of the 30-day period beginning on the date the obligor receives a specific notice of the imposition of the fee. Provides that, in the case of any credit card account under a revolving credit arrangement containing a universal default provision, no increase in any annual percentage rate of interest due to universal default, applicable to the account, or any portion of any outstanding balance on the account may take effect or apply to any outstanding balance of credit under the plan until the beginning of the billing cycle that begins not less than 30 days after the obligor receives a specific notice of the increase. Requires the notice to be mailed or emailed, if the consumer has requested to receive such notices electronically, to the obligor separately from any statement or other notice and without any advertising or other disclosures. Provides that the notice must have highlighted in a clear and conspicuous manner and in bold and capitalized print any changes to the customers current policy. Provides that in case of a fee, the notice shall include an explanation of how, when, and why a fee will be imposed and what options the obligor may have for addressing the imposition of the fee or any reason for the imposition, including the prevention of any future imposition of the fee. Requires the Department of Financial and Professional Regulation to establish a State-wide data collection of universal default information and rules for the collection of universal default information. Establishes reporting requirements for lenders of revolving credit accounts containing universal default provisions. Requires the Department to file a written report with the General Assembly no later than July 1, 2007, and no later than every July 1 thereafter concerning the universal default information collection. Effective immediately.