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A 8409

Extends the effectiveness of provisions of law relating to permissible fees in connection with open end loans

2025 Regular Session Introduced by Rebecca Seawright and 1 co-sponsor

Bill A 8409 extends regulations on permissible fees for open-end loans, ensuring fair lending practices and protecting borrowers from excessive charges.

SIGNED CHAP.144
0
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Bill Summary · A 8409

Summary of Bill A 8409

Bill Information

  • Bill Number: A 8409
  • Title: Extends the effectiveness of provisions of law relating to permissible fees in connection with open end loans
  • Status: Signed into law as Chapter 144
  • Introduced: May 14, 2025

Purpose and Intent

Bill A 8409 aims to extend the effectiveness of existing provisions that govern permissible fees associated with open-end loans. Open-end loans, such as credit lines, allow borrowers to withdraw funds up to a certain limit and repay them over time. This bill seeks to ensure that the regulatory framework surrounding these loans remains effective and relevant, thereby protecting both lenders and borrowers.

Key Provisions

  • Extension of Provisions: The bill extends the current legal framework that regulates the fees lenders can charge for open-end loans. This includes any associated costs that may arise during the loan process.
  • Regulatory Compliance: Lenders must continue to comply with the established limits on fees, ensuring transparency and fairness in lending practices.

Impact

  • Borrowers: Individuals who utilize open-end loans will benefit from continued protections against excessive fees, promoting fair lending practices.
  • Lenders: Financial institutions will have clarity regarding the permissible fee structures, allowing them to operate within a defined regulatory environment.
  • Market Stability: By maintaining these provisions, the bill aims to foster a stable lending market, which can enhance consumer confidence in financial products.

Legislative Process and Timeline

  • Introduced: May 14, 2025
  • Assembly Actions:
    • Passed Assembly on May 21, 2025
    • Delivered to Senate on May 21, 2025
  • Senate Actions:
    • Passed Senate on June 10, 2025
    • Returned to Assembly on June 10, 2025
  • Governor's Approval: Delivered to the Governor on June 18, 2025, and signed into law on June 20, 2025.

Related Bills

  • A 7172: A prior-session bill that may have addressed similar issues.
  • S 8292: A companion bill in the Senate that was substituted for A 8409 during the legislative process.

This summary provides an overview of Bill A 8409, highlighting its purpose, key provisions, and the impact it will have on borrowers and lenders within the open-end loan market. The bill's successful passage underscores the ongoing commitment to fair lending practices in the financial sector.

Compiled from official sources — confirm details with the bill’s official record.

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