Indiana Revises IUCCC Late Charge Provisions for Consumer Credit Sales and Consumer Loans

Indiana governor, Eric Holcomb, recently signed a bill into law, House Bill 1136 (HB 1136), which amends the state’s Uniform Consumer Credit Code (IUCCC).  The amendments authorize a creditor, with respect to certain consumer loans subject to the IUCCC, to collect a delinquency charge of not more than (i) $5 for installments not paid in full within 10 days after the scheduled due date if installments are due every 14 days or less; (ii) $25 for installments not paid in full within 10 days after the scheduled due date if installments are due every 15 days or more; or (iii) $25 on single installments due at least 30 days after the consumer loan is made if the installment is not paid within 10 days after its scheduled due date.

Additionally, the amendments prohibit creditors from collecting a delinquency charge on any payment that (i) is paid within 10 days following its scheduled due date; and (ii) “is otherwise a full payment of the payment due for the applicable installment period . . . if the only delinquency with respect to a consumer credit sale, refinancing, or consolidation is attributable to a delinquency charge assessed on an earlier installment.”

Finally, HB 1136 amends the provisions regarding transaction fees for revolving loan accounts, changing the maximum fee to the greater of $10 or 2% of the transaction amount.  The amendments take effect July 1, 2019.