Compliance Alerts

MINNESOTA

The Minnesota Commerce Department published the periodic adjustment in dollar amounts effective July 1, 2018 through June 30, 2020. The adjustments are based on a 10% increase. The dollar amount adjustments include:

§47.59 Subd. 3

Principal Subject to 33% Interest

$ 1,238.00

§47.59 Subd. 3

Minimum Refund

$        8.25

§47.59 Subd. 6

Default Charges

$         8.58

§47.59 Subd. 6

Loan Administration Fee Threshold

$ 7,128.00

  

Effective July 1, 2018.

 

NEBRASKA

LB 194 was approved by the governor on April 19, 2018. The bill modifies the Credit Services Organization Act, the Delayed Deposit Services Licensing Act, and the Nebraska Installment Loan Act. The law prohibits brokerage fees or any other fees in connection with a loan governed by the Nebraska Installment Loan Act. LB 194 specifies that the minimum term for a loan contract under the Nebraska Installment Loan Act is six months.

Effective January 1, 2019.

 

OKLAHOMA

SB 1151 was signed by the governor on April 25. The bill allows for a convenience fee for payments made by debit card, electronic transfer, electronic check, or other electronic means. The convenience fee shall not exceed the lesser of actual cost incurred by the lender for accepting and processing payments by electronic means, or 4%. Effective November 1, 2018.

The Department of Consumer Credit published the changes in dollar amounts which will become effective July 1, 2018. Included in the adjustments are the following:

Retail Installment Sales, §2-201:

The greater of: 30% of the amount financed up to $1,530;  plus

21% of the excess to $5,100; plus

15% of the remainder to $55,800;

OR  21% Simple Interest

The dollar amounts under §3-508(A) remain the same.

For loans subject to § 3-508(B) of the Oklahoma Code the maximum charge structure is:

Loan Amount

Maximum Charge

$1.00 - $152.95        

$5.10 for every $25.50 advanced

$152.96 - $ 178.50        

Flat 10% plus $15.30

$178.51 - $357.00        

Flat 10% plus $17.85

$357.01 - $510.00        

Flat 10% plus $20.40

$510.01 - $765.00        

Flat 10% plus $22.95

$765.01 - $1,530.00        

Flat 10% plus $25.50

Effective July 1, 2018.

 

TEXAS

The dollar amount brackets and ceilings subject to adjustment in the Texas Financial Code will increase as follows:

Consumer Loans - §342.201

(Add-On Rates)

$18 per $100 per annum of the cash advance to $2,100 plus,

$ 8 per $100 per annum of the excess to $17,500.00

OR

(Simple Melded Rates)

30% per annum of the cash advance to $3,500 plus,

24% of the excess to $7,350 plus,

18% of the remainder to $17,500.00

Retail Installment Sales ("Other Goods") - §345.055

$12 per $100 per annum of the principal balance to $3,500 plus,

$10 per $100 per annum of the excess to $7,000 plus,

$ 8 per $100 per annum of the remainder.

Effective July 1, 2018.