HB23-1229
Amending Terms Consumer Lending Laws
| Type | Bill |
|---|---|
| Session | 2023 Regular Session |
| Subjects |
Concerning changes to consumer lending laws to limit charges to consumers.
Bill Summary:
For consumer credit transactions made or renewed on or after January 1, 2024, the act modifies the requirements for alternative charges for loans not exceeding $1,000 as follows:
- Reduces the permissible acquisition charge on the original loan from 10% to 8% of the amount financed and increases the permissible acquistion charge on any refinanced loan from 7.5% to 8%;
- Reduces the permissible amount for a monthly installment account handling charge;
- Increases the minimum loan term from 90 days to 6 months;
- Eliminates delinquency charges for the loan;
- Amends the conditions upon which an acquisition charge must be refunded to the consumer by eliminating the 60-day deadline for prepaying in full, refinancing, or consolidating a loan and changes how the unearned portions of the acquisition charge and monthly installment handling charges are calculated;
- Details the requirements for an application for the loan and specifies how the loan application requirements impact a determination of unconscionability of the loan; and
- Decreases the number of times a lender may refinance a consumer loan from 3 times in a year to once in a year.
- Opts Colorado out of the amendments to the "Federal Deposit Insurance Act", the federal "National Housing Act", and the "Federal Credit Union Act" and specifies that rates established in the Colorado "Uniform Consumer Credit Act" apply to consumer credit transactions in this state; and
- Repeals provisions specifying that lender or seller credit cards issued by a credit card bank or financial institution are subject to limitations on finance charges in statute and instead specifies that genera-purpose credit cards are not subject to limits on finance charges and fees applicable to consumer credit transactions specified in state law.
PORTIONS EFFECTIVE June 5, 2023
PORTIONS EFFECTIVE July 1, 2024
PORTIONS EFFECTIVE January 1, 2024
(Note: This summary applies to this bill as enacted.)
Related Documents & Information
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.008 | The motion passed without objection. | Vote summary |
| Adopt amendment L.010 | The motion passed without objection. | Vote summary |
| Adopt amendment L.011 | The motion failed on a vote of 3-6. | Vote summary |
| Adopt amendment L.013 | The motion failed on a vote of 3-6. | Vote summary |
| Refer House Bill 23-1229, as amended, to the Committee of the Whole. | The motion passed on a vote of 6-3. | Vote summary |
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.001 (Attachment C). | The motion passed without objection. | Vote summary |
| Adopt amendment L.002 (Attachment D). | The motion passed without objection. | Vote summary |
| Refer House Bill 23-1229, as amended, to the Committee of the Whole. | The motion passed on a vote of 7-4. | Vote summary |
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 05/02/2023 | Senate Amendments | REPASS |
46
AYE
19
NO
0
OTHER
|
Vote record |
| 05/02/2023 | Senate Amendments | CONCUR |
47
AYE
18
NO
0
OTHER
|
Vote record |
| 04/11/2023 | Third Reading | BILL |
44
AYE
18
NO
3
OTHER
|
Vote record |
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 05/01/2023 | Third Reading | BILL |
23
AYE
12
NO
0
OTHER
|
Vote record |
| Date | Amendment Number | Committee/ Floor Hearing | Status | Documents |
|---|---|---|---|---|
| 04/28/2023 | L.020 | Second Reading | Lost [**] | |
| 04/28/2023 | L.018 | Second Reading | Lost [**] | |
| 04/28/2023 | L.019 | Second Reading | Lost [**] | |
| 04/28/2023 | L.021 | Second Reading | Passed [**] | |
| 04/28/2023 | L.015 | Second Reading | Passed [**] | |
| 04/25/2023 | L.013 | SEN Business, Labor, & Technology | Lost | |
| 04/25/2023 | L.011 | SEN Business, Labor, & Technology | Lost | |
| 04/25/2023 | L.010 | SEN Business, Labor, & Technology | Passed [*] | |
| 04/25/2023 | L.008 | SEN Business, Labor, & Technology | Passed [*] | |
| 04/10/2023 | L.004 | Second Reading | Lost [**] | |
| 04/10/2023 | L.005 | Second Reading | Lost [**] | |
| 04/10/2023 | L.003 | Second Reading | Passed [**] | |
| 03/27/2023 | L.002 | HOU Finance | Passed [*] | |
| 03/27/2023 | L.001 | HOU Finance | Passed [*] |
| Date | Location | Action |
|---|---|---|
| 06/05/2023 | Governor | Governor Signed |
| 05/22/2023 | Governor | Sent to the Governor |
| 05/22/2023 | Senate | Signed by the President of the Senate |
| 05/22/2023 | House | Signed by the Speaker of the House |
| 05/02/2023 | Senate | House Considered Senate Amendments - Result was to Concur - Repass |
| 05/01/2023 | Senate | Senate Third Reading Passed - No Amendments |
| 04/28/2023 | Senate | Senate Second Reading Special Order - Passed with Amendments - Committee, Floor |
| 04/28/2023 | Senate | Senate Second Reading Laid Over Daily - No Amendments |
| 04/25/2023 | Senate | Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole |
| 04/12/2023 | Senate | Introduced In Senate - Assigned to Business, Labor, & Technology |
| 04/11/2023 | House | House Third Reading Passed - No Amendments |
| 04/10/2023 | House | House Second Reading Special Order - Passed with Amendments - Committee, Floor |
| 03/31/2023 | House | House Second Reading Laid Over Daily - No Amendments |
| 03/27/2023 | House | House Committee on Finance Refer Amended to House Committee of the Whole |
| 03/03/2023 | House | Introduced In House - Assigned to Finance |
Prime Sponsor
Sponsor
Co-Sponsor
| Effective Date | Chapter # | Title | Documents |
|---|---|---|---|
| 06/05/2023 | 375 | Amending Terms Consumer Lending Laws |