AN ACT to amend the Indiana Code concerning financial institutions.
determination of the office of Medicaid policy and planning or
of a contractor of the office of Medicaid policy and planning
was in error; and
(C) with respect to each finding, action, or determination of
the office of Medicaid policy and planning or of a contractor
of the office of Medicaid policy and planning, the statutes or
rules that support the provider's contentions of error.
Not more than thirty (30) days after filing a petition for review
under this section, and upon a finding of good cause by the
administrative law judge, a person may amend the statement of
issues contained in a petition for review to add one (1) or more
additional issues.
(3) Is filed:
(A) if with respect to an order described in section 4, 5,
6(a)(1), or 6(a)(2), or 6(a)(5) of this chapter, with the ultimate
authority for the agency issuing the order within fifteen (15)
days after the person is given notice of the order or any longer
period set by statute; or
(B) if with respect to a determination described in section
6(a)(3) or 6(a)(4) of this chapter, with the office of Medicaid
policy and planning not more than one hundred eighty (180)
days after the hospital is provided notice of the determination.
The issuance of an amended notice of program reimbursement by
the office of Medicaid policy and planning does not extend the
time within which a hospital must file a petition for review from
the original notice of program reimbursement under clause (B),
except for matters that are the subject of the amended notice of
program reimbursement.
If the petition for review is denied, the petition shall be treated as a
petition for intervention in any review initiated under subsection (d).
(b) If an agency denies a petition for review under subsection (a)
and the petitioner is not allowed to intervene as a party in a proceeding
resulting from the grant of the petition for review of another person, the
agency shall serve a written notice on the petitioner that includes the
following:
(1) A statement that the petition for review is denied.
(2) A brief explanation of the available procedures and the time
limit for seeking administrative review of the denial under
subsection (c).
(c) An agency shall assign an administrative law judge to conduct
a preliminary hearing on the issue of whether a person is qualified
under subsection (a) to obtain review of an order when a person
requests reconsideration of the denial of review in a writing that:
(1) states facts demonstrating that the person filed a petition for
review of an order described in section 4, 5, or 6 of this chapter;
(2) states facts demonstrating that the person was denied review
without an evidentiary hearing; and
(3) is filed with the ultimate authority for the agency denying the
review within fifteen (15) days after the notice required by
subsection (b) was served on the petitioner.
Notice of the preliminary hearing shall be given to the parties, each
person who has a pending petition for intervention in the proceeding,
and any other person described by section 5(d) of this chapter. The
resulting order must be served on the persons to whom notice of the
preliminary hearing must be given and include a statement of the facts
and law on which it is based.
(d) If a petition for review is granted, the petitioner becomes a party
to the proceeding and the agency shall assign the matter to an
administrative law judge or certify the matter to another agency for the
assignment of an administrative law judge (if a statute transfers
responsibility for a hearing on the matter to another agency). The
agency granting the administrative review or the agency to which the
matter is transferred may conduct informal proceedings to settle the
matter to the extent allowed by law.
examination. Under the authority of the state examiner, the oral
examinations may be transcribed with the reasonable expense paid by
the examined person in the same manner as the compensation of the
field examiner is paid. The subpoenas shall be served by any person
authorized to serve civil process from any court in this state. If a
witness duly subpoenaed refuses to attend, refuses to produce
information required in the subpoena, or attends and refuses to be
sworn or affirmed, or to testify when called upon to do so, the examiner
may apply to the circuit court having jurisdiction of the witness for the
enforcement of attendance and answers to questions as provided by the
law governing the taking of depositions.
JULY 1, 2007]: Sec. 102. Purposes; Rules of Construction_(1) This
article shall be liberally construed and applied to promote its
underlying purposes and policies.
(2) The underlying purposes and policies of this article are:
(a) to simplify, clarify, and modernize the law governing retail
installment sales, consumer credit, small loans, and usury;
(b) to provide rate ceilings to assure an adequate supply of credit
to consumers;
(c) to further consumer understanding of the terms of credit
transactions and to foster competition among suppliers of
consumer credit so that consumers may obtain credit at
reasonable cost;
(d) to protect consumer buyers, lessees, and borrowers against
unfair practices by some suppliers of consumer credit, having due
regard for the interests of legitimate and scrupulous creditors;
(e) to permit and encourage the development of fair and
economically sound consumer credit practices;
(f) to conform the regulation of consumer credit transactions to
the policies of the Federal Consumer Credit Protection Act; and
(g) to make uniform the law including administrative rules among
the various jurisdictions.
(3) A reference to a requirement imposed by this article includes
reference to a related rule of the department adopted pursuant to this
article.
(4) A reference to a federal law in IC 24-4.5 is a reference to the law
in effect December 31, 2005. 2006.
state if a writing signed by the debtor and evidencing the debt is
received by the lender or a person acting on behalf of the lender
in this state.
(d) A sale, lease, or loan transaction occurs in Indiana if a
consumer who is a resident of Indiana enters into a consumer
sale, lease, or loan transaction with a creditor in another state
and the creditor has advertised or solicited sales, leases, or
loans in Indiana by any means, including by mail, brochure,
telephone, print, radio, television, the Internet, or electronic
means. However, during the period beginning July 1, 2007,
and ending June 30, 2009, this subdivision does not apply to
an affiliate or a subsidiary of a financial corporation issued a
certificate of authority to operate as an industrial loan and
investment company under IC 28-5 if all of the following
apply:
(i) The industrial loan and investment company notifies the
department in writing that an affiliate or a subsidiary of
the industrial loan and investment company engages or
plans to engage in activity involving Indiana residents at
an out of state location. The notification required by this
clause must list all states other than Indiana in which
consumer loans may be made and must describe the nature
of the proposed transactions.
(ii) The industrial loan and investment company provides
written consent allowing the department to consult with
and review information provided by other state regulators,
as may be requested by the department, concerning the
activities identified in clause (i) of any affiliate or
subsidiary engaging in consumer lending to Indiana
residents in the states identified under clause (i).
(iii) The industrial loan and investment company provides
written consent allowing the department to inspect or
examine all out of state locations in which an affiliate or a
subsidiary of the industrial loan and investment company
engages in the activities identified under clause (i), for the
purpose of investigating the affiliate's or subsidiary's
consumer lending practices involving Indiana residents. An
inspection or examination performed by the department
under this clause is subject to the schedule of fees
established by the department under IC 28-11-3-5.
For purposes of subdivisions (a) through (c), an offer is received by
a creditor in Indiana if the offer is physically delivered, or
otherwise transmitted or communicated, to a person who has
actual or apparent authority to act for the creditor in Indiana,
regardless of whether approval, acceptance, or ratification by any
other agent or representative of the creditor in another state is
necessary to give legal consequence to the consumer credit
transaction.
(2) With respect to sales made pursuant to a revolving charge
account (IC 24-4.5-2-108), this article applies if the buyer's
communication or indications of the buyer's intention to establish the
account is received by the seller in this state. If no communication or
indication of intention is given by the buyer before the first sale, this
article applies if the seller's communication notifying the buyer of the
privilege of using the account is mailed or personally delivered in this
state.
(3) With respect to loans made pursuant to a lender credit card or
similar arrangement, this article applies if the debtor's communication
or indication of the debtor's intention to establish the arrangement with
the lender is received by the lender in this state. If no communication
or indication of intention is given by the debtor before the first loan,
this article applies if the lender's communication notifying the debtor
of the privilege of using the arrangement is mailed or personally
delivered in this state.
(4) (2) IC 24-4.5-5-101 through IC 24-4.5-5-108 apply to actions or
other proceedings brought in this state to enforce rights arising from
consumer credit sales, consumer leases, or consumer loans, or
extortionate extensions of credit, wherever made.
(5) If a consumer credit sale, consumer lease, or consumer loan, or
modification thereof, is made in another state to a person who is a
resident of this state when the sale, lease, loan, or modification is made,
the following provisions apply as though the transaction occurred in
this state:
(a) a seller, a lessor, a lender, or an assignee of the seller's,
lessor's, or assignee's rights, may not collect charges through
actions or other proceedings in excess of those permitted by
IC 24-4.5-2, IC 24-4.5-3, or IC 24-4.5-7; and
(b) a seller, a lessor, a lender, or an assignee of the seller's,
lessor's, or assignee's rights, may not enforce rights against the
buyer, lessee, or debtor, with respect to the provisions of
agreements which violate the provisions on limitations on
agreements and practices of IC 24-4.5-2, IC 24-4.5-3, or
IC 24-4.5-7.
(6) (3) Except as provided in subsection (4), (2), a sale, lease, loan,
or modification thereof, made in another state to a person who was not
a resident of this state when the sale, lease, loan, or modification was
made is valid and enforceable in this state according to its terms to the
extent that it is valid and enforceable under the laws of the state
applicable to the transaction.
(7) (4) For the purposes of this article, the residence of a buyer,
lessee, or debtor is the address given by the buyer, lessee, or debtor as
the buyer's, lessee's, or debtor's residence in any writing signed or
electronic communication made by the buyer, lessee, or debtor in
connection with a credit transaction. Until the buyer, lessee, or debtor
notifies the creditor of a new or different address, the given address is
presumed to be unchanged.
(7.5) With respect to a consumer credit sale, consumer lease, or
consumer loan, or modification thereof, to which this article does not
otherwise apply by reason of subsections (1) through (3), if pursuant to
a solicitation relating to a consumer credit sale, consumer lease, or
consumer loan, a person who is a resident of this state sends a signed
writing evidencing the obligation or offer of the person to a creditor in
another state and receives the goods or service purchased, the goods
leased, or the cash proceeds of the loan in this state:
(a) a seller, a lessor, a lender or an assignee of the seller's, lessor's,
or lender's rights may not contract for or receive charges in excess
of those permitted by IC 24-4.5-2, IC 24-4.5-3, or IC 24-4.5-7;
(b) the provisions of IC 24-4.5-2-301, IC 24-4.5-3-301, and
IC 24-4.5-7-301 shall apply as though the sale, lease, or loan were
made in this state; and
(c) the provisions of IC 24-4.5-6-101 through IC 24-4.5-6-117
shall apply as though the sale, lease, or loan were made in this
state.
(7.6) For the purpose of this section, a solicitation, relating to a
consumer credit sale, consumer lease, or consumer loan, includes: (a)
with respect to sales and leases, an offer by a catalog, pamphlet, flier,
letter, or similar written material to sell or lease goods or to sell
services if the terms for the extension of credit are contained therein
and regardless of whether or not the instrument of solicitation is sent
or delivered at the request of the buyer or lessee; (b) with respect to
loans, an offer by pamphlet, flier, letter, or similar written material to
make loans if the terms for the extension of credit are contained therein
and regardless of whether or not the instrument of solicitation is sent
or delivered at the request of the debtor; and (c) with respect to sales,
leases, and loans, an offer by telephone to extend credit if initiated by
the seller, lessor, or lender.
of the charge to the department indicating how the charge would
be assessed and the value or benefit to the buyer. Supporting
documents may be required by the department. The department
shall determine whether the charge would be of benefit to the
buyer and is reasonable in relation to the benefits.
(d) A charge not to exceed twenty twenty-five dollars ($20) ($25)
for each return by a bank or other depository institution of a
dishonored check, negotiable order of withdrawal, or share draft
issued by the debtor.
(e) Annual or periodic participation fees assessed in connection
with a revolving charge account. Annual participation fees
must:
(i) be reasonable in amount;
(ii) bear a reasonable relationship to the seller's costs to
maintain and monitor the charge account; and
(iii) not be assessed for the purpose of circumvention or
evasion of this article, as determined by the department.
(2) An additional charge may be made for insurance written in
connection with the sale, other than insurance protecting the seller
against the buyer's default or other credit loss:
(a) with respect to insurance against loss of or damage to
property, or against liability, if the seller furnishes a clear and
specific statement in writing to the buyer, setting forth the cost of
the insurance if obtained from or through the seller and stating
that the buyer may choose the person, subject to the seller's
reasonable approval, through whom the insurance is to be
obtained; and
(b) with respect to consumer credit insurance providing life,
accident, unemployment or other loss of income, or health
coverage, if the insurance coverage is not a factor in the approval
by the seller of the extension of credit and is clearly disclosed in
writing to the buyer, and if, in order to obtain the insurance in
connection with the extension of credit, the buyer gives specific,
affirmative, written indication of the desire to do so after written
disclosure of the cost.
(3) With respect to a debt secured by an interest in land, the
following closing costs, if the costs are bona fide, reasonable in
amount, and not for the purpose of circumvention or evasion of this
article:
(a) fees for title examination, abstract of title, title insurance,
property surveys, or similar purposes;
(b) fees for preparing deeds, mortgages, and reconveyance,
settlement, and similar documents;
(c) notary and credit report fees;
(d) amounts required to be paid into escrow or trustee accounts if
the amounts would not otherwise be included in the loan finance
charge; and
(e) appraisal fees.
explanation of the charge to the department indicating how the
charge would be assessed and the value or benefit to the debtor.
Supporting documents may be required by the department. The
department shall determine whether the charge would be of
benefit to the debtor and is reasonable in relation to the benefits.
(f) A charge not to exceed twenty twenty-five dollars ($20) ($25)
for each return by a bank or other depository institution of a
dishonored check, negotiable order of withdrawal, or share draft
issued by the debtor.
(g) With respect to a revolving loan account, a fee not to exceed
twenty twenty-five dollars ($20) ($25) in each billing cycle
during which the balance due under the revolving loan account
exceeds by more than one hundred dollars ($100) the maximum
credit limit for the account established by the lender.
(h) With respect to a revolving loan account, a transaction fee that
may not exceed the lesser of the following:
(i) Two percent (2%) of the amount of the transaction.
(ii) Ten dollars ($10).
The additional charges provided for in paragraphs subdivisions (f), (g),
and (h) are not subject to refund or rebate.
(2) An additional charge may be made for insurance in connection
with the loan, other than insurance protecting the lender against the
debtor's default or other credit loss:
(a) with respect to insurance against loss of or damage to property
or against liability, if the lender furnishes a clear and specific
statement in writing to the debtor, setting forth the cost of the
insurance if obtained from or through the lender and stating that
the debtor may choose the person, subject to the lender's
reasonable approval, through whom the insurance is to be
obtained; and
(b) with respect to consumer credit insurance providing life,
accident, unemployment or other loss of income, or health
coverage, if the insurance coverage is not a factor in the approval
by the lender of the extension of credit and this fact is clearly
disclosed in writing to the debtor, and if, in order to obtain the
insurance in connection with the extension of credit, the debtor
gives specific affirmative written indication of the desire to do so
after written disclosure of the cost of the insurance.
one pursuant to a revolving loan account or one on which only loan
finance charges are payable prior to the time that the final scheduled
payment is due, if any scheduled payment is more than twice as large
as the average of earlier scheduled payments, the debtor has the right
to refinance the amount of that payment at the time it is due without
penalty. The terms of the refinancing shall be no less favorable to the
debtor than the terms of the original loan. This section does not apply
to the extent that the payment schedule is adjusted to the seasonal or
irregular income of the debtor.
(2) For the purposes of this section, .terms of the refinancing.
means:
(a) in the case of a fixed-rate consumer loan, the individual
payment amounts, the charges as a result of default by the debtor,
and the rate of the loan finance charge; and
(b) in the case of a variable rate consumer loan, the method used
to determine the individual payment amounts, the charges as a
result of default by the debtor, the method used to determine the
rate of the loan finance charge, the circumstances under which the
rate of the loan finance charge may increase, and any limitations
on the increase in the rate of the loan finance charge.
(3) If a consumer loan is made under the authority of the
Alternative Mortgage Transaction Parity Act (12 U.S.C. 3802 et
seq.), the note evidencing the mortgage must contain a reference to
the applicable federal law.
proceeding; or
(iii) use information to initiate a civil action or proceeding;
if the information may be obtained from the director or the
director's designee under any law.
(g) The director may require a licensee required to submit
information to the automated central licensing system and
repository to pay a processing fee considered reasonable by
the director.
relinquish the license by notifying the department in writing of its
relinquishment, but this relinquishment shall not affect the person's
liability for acts previously committed.
(6) No revocation, suspension, or relinquishment of a license shall
impair or affect the obligation of any preexisting lawful contract
between the licensee and any debtor.
(7) The department may reinstate a license, terminate a suspension,
or grant a new license to a person whose license has been revoked or
suspended if no fact or condition then exists which clearly would have
justified the department in refusing to grant a license.
(8) If the director:
(a) has just cause to believe an emergency exists from which it is
necessary to protect the interests of the public; or
(b) determines that the license was obtained for the benefit of, or
on behalf of, a person who does not qualify for a license;
the director may proceed with the revocation of the license under
IC 4-21.5-3-6.
is measured from the date of each entry.
(2) If the department:
(a) investigates; or
(b) examines the books and records of;
a person that is subject to IC 24-4.5-6-201, IC 24-4.5-6-202, and
IC 24-4.5-6-203, the person shall pay all reasonably incurred costs of
the investigation or examination in accordance with the fee schedule
adopted by the department under IC 28-11-3-5. However, the person is
liable for the costs of an investigation or examination under this
subsection only to the extent that the costs exceed the amount of the
filing fees paid most recently under IC 24-4.5-6-203. Any costs
required to be paid under this subsection shall be paid not later
than sixty (60) days after the person receives a notice from the
department of the costs being assessed. The department may
impose a fee, in an amount fixed by the department under
IC 28-11-3-5, for each day that the assessed costs are not paid,
beginning on the first day after the sixty (60) day period described
in this subsection.
(3) The department shall be given free access to the records
wherever located. If the person's records are located outside Indiana,
the records shall be made available to the department at a convenient
location within Indiana, or the person shall pay the reasonable and
necessary expenses for the department or its representative to examine
them where they are maintained. The department may designate
comparable officials of the state in which the records are located to
inspect them on behalf of the department.
(4) Upon failure without lawful excuse to obey a subpoena or to
give testimony and upon reasonable notice to all persons affected
thereby, the department may apply to (any civil) court for an order
compelling compliance.
(5) The department shall not make public the name or identity of a
person whose acts or conduct the department investigates pursuant to
this section or the facts disclosed in the investigation, but this
subsection does not apply to disclosures in actions or enforcement
proceedings pursuant to this article.
debtors the amount of the excess charge. If a creditor has made an
excess charge in deliberate violation of or in reckless disregard for this
article, or if a creditor has refused to refund an excess charge within a
reasonable time after demand by the debtor or the department, the court
may also order the respondent to pay to the debtor or debtors a civil
penalty in an amount determined by the court not in excess of the
greater of either the amount of the credit service or loan finance charge
or ten (10) times the amount of the charge. Refunds and penalties to
which the debtor is entitled pursuant to this subsection may be set off
against the debtor's obligation. If a debtor brings an action against a
creditor to recover an excess charge or civil penalty, an action by the
department to recover for the same excess charge or civil penalty shall
be stayed while the debtor's action is pending and shall be dismissed if
the debtor's action is dismissed with prejudice or results in a final
judgment granting or denying the debtor's claim. With respect to excess
charges arising from sales made pursuant to revolving charge accounts
or from loans made pursuant to revolving loan accounts, no action
pursuant to this subsection may be brought more than two (2) years
after the time the excess charge was made. With respect to excess
charges arising from other consumer credit sales or consumer loans, no
action pursuant to this subsection may be brought more than one (1)
year after the due date of the last scheduled payment of the agreement
pursuant to which the charge was made. If the creditor establishes by
a preponderance of evidence that a violation is unintentional or the
result of a bona fide error, no liability to pay a penalty shall be imposed
under this subsection.
(2) The department may bring a civil action against a creditor or a
person acting in his behalf to recover a civil penalty for willfully
violating this article, and if the court finds that the defendant has
engaged in a course of repeated and willful violations of this article, it
may assess a civil penalty of no more than five thousand dollars
($5,000). No civil penalty pursuant to this subsection may be imposed
for violations of this article occurring more than two (2) years before
the action is brought or for making unconscionable agreements or
engaging in a course of fraudulent or unconscionable conduct.
(3) If the department determines, after notice and opportunity
for hearing, that a person has violated this article, the department
may, in addition to or instead of all other remedies available under
this section, impose upon the person a civil penalty not greater
than ten thousand dollars ($10,000) per violation.
JULY 1, 2007]: Sec. 201. (1) This section, IC 24-4.5-6-202, and
IC 24-4.5-6-203 apply to a person, including a supervised financial
organization, but not including a collection agency licensed under
IC 25-11-1, engaged in Indiana in any of the following:
(a) Making consumer credit sales, consumer leases, or consumer
loans.
(b) Taking assignments of rights against debtors that arise from
sales, leases, or loans by a person having an office or a place of
business in Indiana.
(c) Undertaking direct collection of payments from the debtors or
enforcement of rights against the debtors.
(d) Placing consumer credit insurance, receiving commissions for
consumer credit insurance, or acting as a limited line credit
insurance producer in the sale of consumer credit insurance.
(e) Selling insurance or other benefits, the charges for which
are approved by the department as additional charges under
IC 24-4.5-2-202 or IC 24-4.5-3-202.
(2) This section, IC 24-4.5-6-202, and IC 24-4.5-6-203 are not
applicable to a seller whose credit sales consist entirely of sales made
pursuant to a seller credit card issued by a person other than the seller
if the issuer of the card has complied with the provisions of this
section, IC 24-4.5-6-202, and IC 24-4.5-6-203.
(3) This section, IC 24-4.5-6-202, and IC 24-4.5-6-203 apply to a
seller whose credit sales are made using credit cards that:
(a) are issued by a lender;
(b) are in the name of the seller; and
(c) can be used by the buyer or lessee only for purchases or leases
at locations of the named seller.
Indiana at which consumer credit sales, consumer leases, or
consumer loans are made, or in the case of a person taking
assignments of obligations, the offices or places of business
within this state Indiana at which business is transacted.
(2) If information in a notification becomes inaccurate after filing,
no further notification is required until the following
(2) A person required to be licensed under this article shall file
the notification required by subsection (1) not later than December
31 of each year. All other persons subject to this section shall file
the notification required by subsection (1) not later than January 31
of each year.
(3) Persons subject to IC 24-4.5-6-201, IC 24-4.5-6-203, and this
section shall notify the department not later than thirty (30) days after
the person:
(a) has a change in name, address, or principals;
(b) opens a new branch, closes an existing branch, or relocates an
existing branch;
(c) files for bankruptcy or reorganization;
(d) is notified that the person is subject to revocation or
suspension proceedings by a state or governmental authority with
regard to the person's activities;
(e) is under indictment for a felony indictment related to the
person's activities; involving fraud, deceit, or
misrepresentation under the laws of Indiana or any other
jurisdiction; or
(f) has been convicted of or pleaded guilty or nolo contendere
to a felony related to the person's activities. involving fraud,
deceit, or misrepresentation under the laws of Indiana or any
other jurisdiction.
increase in the amount of an obligation is a new sale, lease, or loan to
the extent of the increase. In prescribing the fee, the department shall
consider the costs and expense incurred or estimated to be incurred by
the department in the administration of this article, including, but not
limited to, the supervision, regulation, and examination of persons
subject to the provisions of the article.
(2) Persons required to file notification who are assignees shall pay
a fee as prescribed and fixed by the department under subsection (1) on
the unpaid balances at the time of the assignment of obligations arising
from consumer credit sales, consumer leases, and consumer loans made
in this state Indiana taken by assignment during the preceding
calendar year, but an assignee need not pay a fee with respect to an
obligation on which the assignor or other person has already paid a fee.
(3) Persons required to file notification who are assignors shall pay
a fee as prescribed by the department under subsection (1) on the
unpaid balances at the time of the assignment of obligations arising
from consumer credit sales, consumer leases, and consumer loans made
in Indiana during the preceding calendar year unless the assignee has
already paid the fees.
(4) Persons required to renew a license by under IC 24-4.5-3-503
may deduct the fees paid under IC 24-4.5-3-503(4)(a)
IC 24-4.5-3-503(6)(a) through IC 24-4.5-3-503(4)(c)
IC 24-4.5-3-503(6)(c) from fees paid under this section.
(5) A person that is required to file notification under
IC 24-4.5-6-202 shall pay a fee at the same rate as prescribed and fixed
by the department under subsection (1) on the original unpaid balances
of all closed end credit obligations originating from the person's place
of business during the calendar year time preceding the notification as
specified under subsection (1), unless the fees for the obligations have
been paid by another person.
under IC 24-4.5-3-502;
(b) a bank, savings association, credit union, or other state or
federally regulated financial institution except those that are
specifically exempt regarding limitations on interest rates and
fees; or
(c) a person, if the department determines that a transaction is:
(i) in substance a disguised loan; or
(ii) the application of subterfuge for the purpose of avoiding
this chapter.
(3) A loan that:
(a) does not qualify as a small loan under IC 24-4.5-7-104;
(b) is for a term shorter than that specified in
IC 24-4.5-7-401(1); or
(c) is made in violation of IC 24-4.5-7-402;
is subject to this article. The department may conform the finance
charge for a loan described in this subsection to the limitations set
forth in IC 24-4.5-3-508.
dollars ($400).
(3) Finance charges on the amount of the small loan greater than
four hundred dollars ($400) and less than or equal to five hundred fifty
dollars ($500) ($550) are limited to ten percent (10%) of the amount
over four hundred dollars ($400) and less than or equal to five hundred
fifty dollars ($500). ($550).
(4) The amount of five hundred fifty dollars ($550) in subsection
(3) is subject to change under the provisions on adjustment of
dollar amounts (IC 24-4.5-1-106). However, notwithstanding
IC 24-4.5-1-106(1), the Reference Base Index to be used under this
subsection is the Index for October 2006.
loan.
(3) Subject to subsection (4), whenever a borrower has entered
into an initial small loan followed by three (3) consecutive small
loans, the lender shall offer the borrower the option to repay:
(a) the third consecutive small loan; and
(b) subject to subsection (2), any small loan entered into after
the third consecutive small loan;
under an extended payment plan. At the time of execution of a
small loan described in subdivision (a) or (b), the lender shall
disclose to the borrower the extended payment plan option by
providing the borrower a written description of the extended
payment plan option in a separate disclosure document approved
by the director.
(4) A lender shall offer an extended payment plan under
subsection (3) under the following terms and conditions:
(a) A borrower shall be permitted to request an extended
payment plan at any time during the term of a third or
subsequent consecutive small loan if the borrower has not
defaulted on the outstanding small loan.
(b) An extended payment plan must allow the outstanding
small loan to be paid in at least four (4) equal installments
over a period of not less than sixty (60) days.
(c) The lender may not assess any fee or charge on a borrower
for entering into an extended payment plan.
(d) An agreement for an extended payment plan must be in
writing and acknowledged by both the borrower and the
lender.
(e) A borrower may not enter into another small loan
transaction while engaged in an extended payment plan.
(5) An agreement for an extended payment plan under
subsection (3):
(a) shall be considered an extension of the outstanding small
loan; and
(b) may not be considered a new loan.
gross income.
(2) A small loan may be secured by only one (1) check or
authorization to debit the borrower's account per small loan. The check
or electronic debit may not exceed the amount advanced to or on behalf
of the borrower plus loan finance charges contracted for and permitted.
(3) A borrower may make partial payments in any amount on the
small loan without charge at any time before the due date of the small
loan. After each payment is made on a small loan, whether the payment
is in part or in full, the lender shall give a signed and dated receipt to
the borrower making a payment showing the amount paid and the
balance due on the small loan.
(4) The lender shall provide to each borrower a copy of the required
loan documents before the disbursement of the loan proceeds.
(5) A borrower may rescind a small loan without cost not later than
the end of the business day immediately following the day on which the
small loan was made. To rescind a small loan, a borrower must:
(a) inform the lender that the borrower wants to rescind the small
loan; and
(b) return the cash amount of the principal of the small loan to the
lender.
(6) A lender shall not enter into a renewal with a borrower. If a loan
is paid in full, a subsequent loan is not a renewal.
However, notwithstanding IC 24-4.5-1-106(1), the Reference Base
Index to be used under this subsection is the Index for October
2006.
(4) A lender complies with subsection (3) if the borrower represents
in writing that the borrower does not have any outstanding small loans
with the lender, another lender, an affiliate of the lender or another
lender, or a separate entity involved in a business association with the
lender or another lender in making small loans, and the lender
independently verifies the accuracy of the borrower's written
representation through a commercially reasonable method of
verification. A lender's method of verifying whether a borrower has any
outstanding small loans will be considered commercially reasonable if
the method includes a manual investigation or an electronic query of:
(a) the lender's own records, including both records maintained at
the location where the borrower is applying for the transaction
and records maintained at other locations within the state that are
owned and operated by the lender; and
(b) available third party databases provided by private
consumer reporting services.
(5) The department shall monitor the effectiveness of private
consumer credit reporting services in providing the verification
information required under subsection (4). If the department
determines that one (1) or more commercially reasonable methods of
verification are available, the department shall:
(a) provide reasonable notice to all lenders identifying the
commercially reasonable methods of verification that are
available; and
(b) require each lender to use, consistent with the policies of the
department, one (1) of the identified commercially reasonable
methods of verification as a means of complying with subsection
(4).
(6) If a borrower presents evidence to a lender that a loan has
been discharged in bankruptcy, the lender shall cause the record
of the borrower's loan to be updated in the database described in
subsection (4)(b) to reflect the bankruptcy discharge.
(7) A lender shall cause the record of a borrower's loan to be
updated in the database described in subsection (4)(b) to reflect:
(a) presentment of the borrower's check for payment; or
(b) exercise of the borrower's authorization to debit the
borrower's account.
If a check is returned or an authorization is dishonored because of
insufficient funds in the borrower's account, the lender shall
reenter the record of the loan in the database.
(8) A lender shall update information in a database described in
subsection (4)(b) to reflect partial payments made on an
outstanding loan, the record of which is maintained in the
database.
(9) If a lender ceases doing business in Indiana, the director may
require one (1) or more operators of databases described in
subsection (4)(b) to remove records of the lender's loans from the
operator's database.
(10) The director may impose a civil penalty not to exceed one
hundred dollars ($100) for each violation of:
(a) this section; or
(b) any rule or policy adopted by the director to implement
this section.
(6) (11) The excess amount of loan finance charge provided for in
agreements in violation of this section is an excess charge for purposes
of the provisions concerning effect of violations on rights of parties
(IC 24-4.5-5-202) and the provisions concerning civil actions by the
department (IC 24-4.5-6-113).
contract for late charges or delinquency fees as follows:
(1) For rental purchase agreements with monthly renewal dates,
a late charge not exceeding five eight dollars ($5) ($8) may be
assessed on any rental payment not made within five (5) days
after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rental
purchase agreement.
(2) For rental purchase agreements with weekly or biweekly
renewal dates, a late charge not exceeding the amount specified
in subsection (e) may be assessed on any rental payments not
made within three (3) two (2) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rental
purchase agreement.
(b) A late charge on a rental purchase agreement may be collected
only once on any accrued rental payment, no matter how long it
remains unpaid.
(c) A late charge may be collected at any time after it accrues.
(d) A late charge may not be assessed against a rental payment that
is timely made, even though an earlier late charge has not been paid in
full.
(e) The amount that may be assessed under subsection (a)(2) is as
follows:
(1) One dollar ($1) Three dollars ($3) for any payment not
greater than nine dollars and fifty cents ($9.50). twenty dollars
($20).
(2) Two dollars ($2) for any payment greater than nine dollars and
fifty cents ($9.50) but not greater than nineteen dollars and fifty
cents ($19.50).
(3) Three (2) Five dollars ($3) ($5) for any payment greater than
nineteen dollars and fifty cents ($19.50). twenty dollars ($20).
that accepts deposits.
(b) The term does not include a person licensed under IC 24-4.5.