Bill > SB145

This bill amends Kentucky Revised Statutes to modify the rules for delinquency and collection charges on retail installment contracts, specifically addressing the waiting period before such charges can be applied. The bill allows holders of retail installment contracts with installment periods shorter than 28 days to charge delinquency and collection fees after just 3 days of being in arrears, compared to the previous 10-day waiting period for longer installment periods. The changes permit contract holders to collect a delinquency and collection charge of up to 5% of each installment or $15, whichever is greater, with the timing of when these charges can be applied now dependent on the length of the installment period. Additionally, the bill updates language in related statutes to align with these changes, including a provision allowing for reasonable attorneys' fees in collection efforts. The modification aims to provide more flexibility for contract holders with shorter billing cycles while maintaining consumer protections, and it reflects an adjustment to modern lending practices that may involve more frequent, smaller installment payments.

Business and Industry, Transportation and Infrastructure

https://apps.legislature.ky.gov/record/25RS/sb145.html