House Bill No. 513 enacts the Louisiana Consumer Alternative Installment Loan Act, which introduces a new framework for consumer loans in Louisiana. This legislation establishes 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 loan finance charge not exceeding an annual percentage rate of 59% on loans of $5,500 or less. The bill also details the administration and enforcement of these provisions by the commissioner of financial institutions, who is granted the authority to adopt necessary rules for compliance.

Additionally, the bill repeals a specific requirement for credit unions regarding their investment in fixed assets, allowing for greater flexibility in opening branches. It mandates that loan agreements include specific language informing borrowers of their rights and the regulatory oversight of the Louisiana Office of Financial Institutions. The legislation also prohibits lenders from conditioning credit extensions on specific repayment methods, ensuring consumers have the freedom to choose their payment methods. Overall, this bill aims to create a more structured and consumer-friendly environment for alternative installment loans in Louisiana.

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