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 options for interest rates and repayment terms. The bill also mandates that loan agreements include specific language regarding consumer rights and the regulatory oversight of the Louisiana Office of Financial Institutions.

Additionally, the bill repeals a requirement for credit unions concerning their investment in fixed assets, allowing for greater flexibility in branch openings. It empowers the commissioner to adopt rules for the enforcement of the new provisions and requires the Office of Financial Institutions to publish an updated maximum loan amount annually based on the Consumer Price Index. The legislation aims to enhance consumer protection while providing clarity and structure to the alternative installment loan market in Louisiana.

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