Bill
HD 414
Overview: Bill Number: HD 414, Title: An Act to protect consumers by further defining subprime loans, Status: Proposed bill, Introduced: November 29, 2025Purpose and Intent: The pr
Overview: Bill Number: HD 414, Title: An Act to protect consumers by further defining subprime loans, Status: Proposed bill, Introduced: November 29, 2025
Purpose and Intent: The primary goal of this bill is to strengthen consumer protections and increase transparency in the subprime lending market. The legislation aims to provide a more comprehensive definition of subprime loans and impose additional requirements on lenders to ensure borrowers are fully informed and protected.
Key Provisions:
- Expands the definition of subprime loans to include any loan with an annual percentage rate (APR) that exceeds the average prime offer rate by more than 3 percentage points
- Requires lenders to provide clear and conspicuous disclosures to borrowers about the terms and risks associated with subprime loans
- Grants the state's Consumer Protection Division the authority to investigate and take enforcement action against lenders who engage in deceptive or abusive subprime lending practices
Affected Parties and Impacts:
- Consumers seeking financing, particularly those with lower credit scores or limited financial resources, will benefit from increased protections and transparency in the subprime lending market
- Lenders offering subprime loans will be subject to the new disclosure requirements and potential enforcement actions
- The state's Consumer Protection Division will be responsible for overseeing and enforcing the new regulations
Procedural and Timeline Considerations:
- The bill has been introduced in the state legislature and is currently under consideration
- If passed, the new requirements would go into effect 180 days after the bill's enactment
- The Consumer Protection Division would be responsible for developing and implementing the necessary rules and procedures to administer the new law
Compiled from official sources — confirm details with the bill’s official record.
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