The Senate Banking and Insurance Committee met today and reported SB 344 to the Committee on Judiciary with a recommendation that it pass.
Senate Bill 344 would specify that payments made on consumer credit sales and loans must be applied in order that they are due, otherwise there are penalties.
Senator Romano (D-Harrison) suggested the bill penalizes those who are trying to pay their minimum payments by allowing the late fee penalties to carry over.
Mr. Loren Allen, a presenter representing the Banking Commission. said the bill is well within the rights and obligations of the signers of the contract and is designed to punish chronic late payers and not those who have missed one payment, or are trying to meet their minimum payments.
Senator Romano then presented an amendment that would only penalize with late fees for the months where payments were late in order to prevent stacking. This amendment was defeated.
Senator Facemire (D-Braxton) suggested an amendment that would exempt credit cards from the bill, due to their fluctuation of minimum payments. This amendment was adopted.
Senate Bill 344 as amended was then sent to the Committee on Judiciary with the recommendation that it pass.
