House Bill 240

Chair's Name: Tom McCall

Committee: Agriculture & Consumer Affairs

House Sponsor: Ben Harbin

HB 240 increases the maximum delinquency charge for late installment payments from $18 to $25.  This charge can be assessed if the payment is more than 10 days late and can only be charged once per installment period. The maximum fee currently set in statute has not been changed in many years.

The bill received a Do Pass recommendation from the Agriculture & Consumer Affairs Committee and comes to the House Floor under the Open Rule. 

Chairman Willard�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

This bill raises the delinquency fee on retail installment contracts or revolving accounts from $18 to $25.  The fee may only be charged once for the same default.  This only applies if the installment payment is not paid within 10 days of the due date.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

Request for an increase in delinquency fees by businesses that have chronically late payments to them.

THIS LEGISLATION:

�         Increases Personal Responsibility:

  Encourages timely payments.