Bill > HB513

This bill enacts the Louisiana Consumer Alternative Installment Loan Act, which provides a new framework for consumer loans of $5,500 or less. The law allows licensed lenders to charge a maximum annual percentage rate of 59% on these loans, with repayment structured in substantially equal monthly installments. Lenders have the option to use this new rate structure instead of existing consumer loan rates, but the law explicitly does not apply to business or commercial credit. Key provisions include requiring loans to have consistent monthly payments (with some flexibility for the first installment), mandating specific consumer protections such as prohibiting conditioning credit on specific payment methods, and requiring a standard disclosure statement about regulatory oversight. The bill also requires the Office of Financial Institutions to annually adjust the maximum loan amount based on the Consumer Price Index, ensuring the threshold keeps pace with inflation. The law will be administered by the commissioner and must comply with existing Louisiana Consumer Credit Law provisions, with additional rules to be developed to support implementation. Notably, the bill repeals a previous related statute (R.S. 6:661.1(A)(2)), suggesting this new act is intended to replace or modify existing lending regulations.