Indiana Modifies Provisions Under Uniform Consumer Credit Code

Recently signed into law and effective July 1, 2022, IA S.B. 383 amended the Indiana Uniform Consumer Credit Code (UCCC) regarding authorized finance charges for consumer loans.  This amendment clarified that: (i) the section of the code governing finance charges for consumer loans (other than supervised loans) does not apply to supervised loans; and (ii) the loan finance charge for a supervised loan must be: (a) contracted for between the lender and the debtor; and (b) calculated by applying a rate not exceeding the authorized rate to unpaid balances of the principal.  Moreover, IA S.B. 383 amended the UCCC to permit additional charges for guaranteed asset protection agreements for both consumer credit sales and consumer loans.

In addition to amending the UCCC, IA S.B. 383 amended the Indiana Code concerning the Department of Financial Institution’s duties of confidentiality with respect to certain information, specifying that those duties apply to all regulated entities licensed or registered with the Department.