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The South Carolina Department of Consumer Affairs has issued its biennial dollar amount adjustments under the South Carolina Consumer Protection Code. Among other things, the amount that may be charged for a delinquency fee (or late charge) has increased from $15.50 to $16.50. Additionally, the minimum delinquency charge has been increased from $6.20 to $6.60.

Documents affected: This new law will affect the Wolters Kluwer Financial Services retail contracts for South Carolina that include a full description of the late charge:

RSSIMVLF-SC
RSSIMVLFA-SC
RSSIGSLF-SC
RSSIGSLFA-SC

The above also includes electronic versions of the documents.

Effective date: July 1, 2008.

The Indiana Department of Financial Institutions has issued its biennial dollar amount adjustments under the Indiana Uniform Consumer Credit Code. Among other things, the dollar limit on a delinquency charge has increased from $17.00 to $17.50.

Documents affected: This new law will affect the WKFS forms for Indiana that include a full description of the late charge:

• RSSIMVLF-IN
• RSSIMVLFA-IN
• RSSIGSLF-IN
• RSSIGSLFA-IN

plus electronic versions.

The effective date for this change is July 1, 2008.

State legislatures are continuing to introduce and pass bills that address predatory lending practices on the state level.  While many of these bills are directed towards the mortgage broker industry, some are drafted broadly enough to encompass traditional lenders. While these bills vary depending upon the state, many include notice provisions, special disclosures and limitations on permissible loan terms. With the legislative session in full swing in many states, be sure that you follow these legislative developments carefully.

For an overview of state law predatory lending issues, read the article by Therese Franzén and Leslie Howell on Predatory Lending and Subprime Developments.

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