Compliance Alerts

Effective State Changes



The State Banking Department updated Rule No. 155-2-2-.12, regarding Credit Insurance. Under the new rule, joint A&H is now permitted. Joint A&H is authorized up to 185% of the premium rates. Joint IUI is authorized up to 175% of the premium rates. The Credit Life and A&H rates remain unchanged. Effective June 1, 2018.



HB 18-1299 was signed by the governor on May 29, 2018. The act defines third-party providers. The act specifically allows a consumer to be charged the fee that is paid to a third party provider in connection to an electronic registration transaction, lien transaction or titling transaction. Effective July 1, 2019.



Public Act No. 18-173 (HB 5490) was signed by the Governor on June 14, 2018. The Act modifies the maximum annual percentage rates for small loans.

  • Small loans under $5,000: the maximum APR is the lesser of 36% or the maximum APR permitted with respect to credit extended under the Military Lending Act (currently 36%).
  • Small loans between $5,000 and $15,000: the maximum APR is 25%.

Effective October 1, 2018. 



SB 386 modified the delinquency charge allowed for loans under § 516.031. Previously, a delinquency charge of up to $15 was allowed for each payment in default for at least 10 days. Effective July 1, 2018, the delinquency charges for loan are as follows:

  • Monthly payments        up to $15 per payment in default
  • Semimonthly payments  up to $7.50 per payment in default
  • Biweekly payments up to $7.50 per payment if 2 payments are due in the same month; $5 if 3 payments are due within the same month

Effective July 1, 2018.



The Indiana Department of Financial Institutions published guidance for GAP and Debt Cancellation Administrators on April 2, 2018. Beginning July 1, 2018, the department will no longer approve GAP Waiver forms. Providers no longer require approval. The guidance also specifies prohibitions on refund methods and clarifies that GAP or Debt Cancellation is considered a finance charge, which is subject to the Indiana rate cap. GAP or Debt Cancellation will be considered a finance charge only if the criteria specified in HEA 1397 are not met. Due to the passage of this legislation (HEA 1397), the historical approach regarding these products and the approval given to GAP and DC Administrators by the Department will be changing.  Effective July 1, 2018.

The default charges for loans $55,800 or less will change from $18.50  to $19.00. Effective July 1, 2018.



Louisiana HB 522 / Act 592 was signed by the Louisiana Governor on May 28, 2018. The Act relates to motor vehicle service contracts. It provides a specific definition for “service contract” and “warranties” which are excluded from the service contract. The Act specifies certain required disclosures for consumers. Service contracts are not considered insurance under this Act.   Effective February 1, 2019.



SB 1068/ Chapter 732 and HB 1634/ Chapter 731

SB 1068 was signed by the governor on May 15, 2018 and creates the Financial Consumer Protection Act of 2018. The governor signed a similar bill, HB 1634/Chapter 731 on the same day. The Act requires lenders of covered loans to be licensed in the state. The Act expands the definition of unfair, abusive or deceptive trade practices.  Both laws are effective October 1, 2018. 

HB 1297 increases the small loan threshold under the Maryland Consumer Loan Law from $6,000 to $25,000. The bill applies to lenders making loans of $25,000 or less, unless they are exempt under the MCLL. The bill prohibits loans at a rate of interest, charge, discount or other consideration greater than the amount authorized under state law or that violates the MLA. Effective January 1, 2019.



The default charges for retail installment sales will change to the greater of 5% of the delinquent installment or $8.58. Effective July 1, 2018.



The default charges for retail installment sales will change to the greater of 5% of the unpaid installment or $25.50. Effective July 1, 2018.



The default charges for retail installment sales will change to the greater of 5% of the unpaid installment, with a maximum of $18.50; or 40% of $7.40. Effective July 1, 2018.