House Bill No. 513 enacts the Louisiana Consumer Alternative Installment Loan Act, establishing a new framework for consumer loans in Louisiana. This legislation introduces definitions for key terms such as "applicable interest," "Consumer Price Index for All Urban Consumers," and "precomputed consumer loan." It outlines the conditions under which licensed lenders can offer precomputed consumer loans, including the option to charge a monthly finance charge not exceeding an annual percentage rate of 59% on loans of $5,500 or less. The bill also specifies the repayment terms, including the application of payments to principal and interest, and mandates that lenders provide certain disclosures in loan agreements.

Additionally, the bill repeals a requirement for credit unions regarding their investment in fixed assets to open branches, thereby easing regulatory burdens. It grants the commissioner of financial institutions the authority to adopt rules for the enforcement of the new law and requires the Office of Financial Institutions to publish an updated maximum loan amount annually. The legislation aims to enhance consumer protection while providing flexibility for lenders in the installment loan market.

Statutes affected:
HB513 Engrossed: 6:1(A)(2)
HB513 Reengrossed: 6:1(A)(2)