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Bill

S 4129

Requires lending institutions that send unsolicited mail-loan checks to clearly state the interest rate and the total cost of loan in a dollar amount

2025 Regular Session Introduced by Kevin Parker

Bill S 4129 requires lenders to clearly disclose interest rates and total loan costs in unsolicited mail offers, helping consumers make informed financial decisions.

REFERRED TO BANKS
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Bill Summary · S 4129

Summary of Bill S 4129

Bill Overview

  • Bill Number: S 4129
  • Title: Requires lending institutions that send unsolicited mail-loan checks to clearly state the interest rate and the total cost of loan in a dollar amount
  • Status: Referred to Banks
  • Introduced: February 03, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill S 4129 is to enhance transparency in the lending process, particularly regarding unsolicited loan offers sent through the mail. The bill aims to protect consumers by ensuring that they are fully informed about the financial implications of accepting such offers.

Key Provisions

  • Disclosure Requirements: Lending institutions that issue unsolicited mail-loan checks must include:
    • The interest rate associated with the loan.
    • The total cost of the loan expressed in a clear dollar amount.

This requirement is intended to provide potential borrowers with essential information upfront, allowing them to make informed decisions about their financial options.

Impact

  • Consumers: The bill is designed to benefit consumers by providing clearer information about loan offers, which can help them avoid high-interest loans and better understand the financial commitments they may be entering into.
  • Lending Institutions: Banks and other lending entities will need to adjust their marketing practices to comply with the new disclosure requirements, potentially leading to changes in how they communicate loan offers.

Procedural Aspects

  • The bill was introduced on February 03, 2025, and has been referred to the Banks committee for further consideration. The timeline for further legislative action or potential voting has not been specified at this stage.

Related Legislation

Bill S 4129 is part of a broader legislative context, with several related bills from prior sessions, including:
- S 1723
- S 2910
- S 1494
- S 2285
- S 4527
- S 3076
- S 4371
- S 4426
- S 5283

These related bills may address similar issues regarding lending practices and consumer protection, indicating ongoing legislative interest in this area.

This summary provides a concise overview of Bill S 4129, highlighting its purpose, key provisions, and potential impact on consumers and lending institutions.

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

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