April 2021

 

 

ARIZONA

On April 6, 2021 House Bill 2721 was signed into law which requires Arizona motor vehicle dealers to disclose any Document Fee they charge for a motor vehicle transaction in any advertisements. Effective 90 days after sine die adjournment.

 

ARKANSAS

House Bill 1893 exempts certain electric and hybrid vehicles from registration fees. Effective retroactively to October 1, 2019.

 

FLORIDA

Senate Bill 50 was signed by Governor Ron DeSantis on April 19, 2021. The new law revises the definition of a “retail sale” to include sales facilitated through an internet marketplace. In addition, the new legislative scheme requires marketplace providers and persons outside of Florida to remit discretionary sales surtax when delivering tangible personal property to a county imposing a surtax and a marketplace seller—rather than the provider—is responsible for sales tax collection and remittance in certain instances. Effective, in part, on July 1, 2021.

 

INDIANA

Senate Bill 346 makes amendments to the Uniform Consumer Credit Code and first lien mortgage law to remain consistent with federal laws in effect on Dec. 31, 2019, to federal laws in effect on Dec. 31, 2020. Effective July 1, 2021.

Indiana House Bill 1285 was passed on April 23, 2021. Among other provisions, the bill sets up a statewide electronic titling and lien system. Effective, in part, on January 1, 2022.

 

IOWA

House File 719 creates the Insurance Data Security Act which enacts standards for data security and data breach investigations under the purview of the Commissioner of Insurance. Effective January 1, 2022.

 

KENTUCKY

Kentucky Governor Andy Beshear signed Senate Bill 71 into law on March 22, 2021. Amongst other provisions, the new law defines automobile clubs, recovery, towing services, and the relationship between a lienholder and the owner of a vehicle. Effective 90 days after sine die adjournment.

 

MARYLAND

Senate Bill 281 extends the Office of the Commissioner of Financial Regulation's sunset date to July 1, 2032. Effective Immediately.

 

NORTH DAKOTA

North Dakota Senate Bill 2103 was signed into law on April 19, 2021. The bill amends money broker loan charges, expands licensing exemptions, and changes deferred presentment service transaction procedures. A money broker licensee cannot contract for a finance charge of more than an annual rate of 36%. Additional charges may be assessed for late payment not to exceed 5% of the payment or if the loan originated is for $50,000 or less, the charges may not exceed $20. Additional restrictions for small loans originated for less than $2,000 include the following: Installment loans must be paid in equal installments, loans may not exceed 36 months, and a balloon payment is prohibited. An existing loan may be refinanced into a new small loan of less than $2,000, but the combination of any refinance fees along with any original loan fees may not exceed $100 per calendar year. Finally, an additional charge of up to $100 may be assessed for a loan extension or deferment of payment. Effective August 1, 2021.

Governor Doug Burgum signed SB 2150 on April 1, 2021. The new law states that vehicle theft protection warranties are not subject to regulation as insurance. Additionally, the bill defines what types of vehicle damage a service contract could cover. Effective August 1, 2021.

 

OKLAHOMA

The Department of Consumer Credit published the changes in dollar amounts which will become effective July 1, 2021. Included in the adjustments are the following:

Retail Installment Sales, §2-201:

The greater of: 

30% of the amount financed up to $1,620; plus

21% of the excess to $5,400; plus

15% of the remainder to $58,300.

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	Acquisition Charge	Handling Charge
Up to $161.95		$5.40 per $27.00 of principal
$161.95-$189.00	1/10 of the amount of principal	$16.20 per month
$189.01-$378.00	1/10 of the amount of principal	$18.90 per month
$378.01-$540.00	1/10 of the amount of principal	$21.60 per month
$540.01-$810.00	1/10 of the amount of principal	$24.30 per month
$810.01-$1,080.00	1/10 of the amount of principal	$27.00 per month
$1,080.01-$1,350.00	1/10 of the amount of principal	$29.70 per month
$1,350.01-$1,620.00	1/10 of the amount of principal	$32.40 per month

 

The maximum delinquency charge for consumer credit sales and consumer loans will increase from $26.50 to $27.00. Effective July 1, 2021.

Senate Bill 261 creates an Oklahoma Student Borrower's Bill of Rights. The new law defines these student's rights, prohibits certain actions by servicers, and directs the Attorney General to create materials in compliance with its provisions. Effective November 1, 2021.

Senate Bill 796 was signed on April 21, 2021 by Governor Kevin Stitt. The new bill creates amendments to the Oklahoma Uniform Commercial Code, specifically Section 3-508A to increase the cap on loan finance charges from 27% to 32% per year on unpaid balances of the principal of $7,000 or less, 23% per year on the unpaid balances of the principal more than $7,000 to $11,000, and 20% on the unpaid balances of the principal more than $11,000. The bill also provides for a closing fee upon prepayment in full of up to $28.85 under Section 3-210. Effective November 1, 2021.

 

TENNESSEE

Tennessee House Bill 421 was signed into law on April 7, 2021. This new law increases fees and adds new fees an industrial loan entity may charge. Under the new law, any industrial loan entity may contract for a service charge of 5% on the Total Amount of the Loan (up from 4%). It also modifies the installment maintenance fee structure to a flat $5.00 per month. Finally, new provisions allow a registrant to contract for a closing fee for prepayment at the time of origination. The closing fee may be for an amount of up to 4% of the amount financed but no more than $50.00. Effective July 1, 2021.

 

TEXAS

Released in February 2021, 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 $2,220 plus,

$  8 per $100 per annum of the excess to $18,550

OR

(Simple Melded Rates)

30% per annum of the cash advance to $3,700 plus,

24% of the excess to $7,770 plus,

18% of the remainder to $18,500

 

Retail Installment Sales (“Other Goods”) – §345.055

$12 per $100 per annum of the principal balance to $3,700 plus

$10 per $100 per annum of the excess to $7,400 plus,

$  8 per $100 per annum of the remainder.

Effective July 1, 2021.

 

UTAH

House Bill 80 was signed into law on April 11, 2021. The bill creates affirmative defenses for businesses that experience a data security breach. Effective 60 days after sine die adjournment.

 

VIRGINIA

Virginia House Bill 1979 creates an Electric Vehicle Rebate Program for the purchase or lease of new or used electric vehicles. The bill also adds definitions, funding sources, and enacts logistical changes to create the Electric Vehicle Rebate Program Advisory Council. Effective July 1, 2021.

 

WASHINGTON

Senate Bill 5000 enacts a 50% reduction in taxes on sales or lease agreements for electric passenger cars, light duty trucks, and medium duty passenger vehicles which are powered by a fuel cell. Effective July 1, 2022.

 

WYOMING

Wyoming House Bill 190 allows a nonresident person registered as a business entity under the laws of another state and who operates a vehicle in Wyoming for commercial purposes to apply for a Wyoming certificate of title. Effective July 1, 2021.

 

 

 

CONSUMER FINANCIAL PROTECTION BUREAU

The Consumer Financial Protection Bureau (“CFPB”) issued a final rule delaying the mandatory compliance date for the new general qualified mortgage (“QM”) final rule based on an annual percentage rate limit from July 1, 2021 to October 1, 2022. Effective on June 30, 2021.