BILL SUMMARY for HB09-1141
HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
|Votes: View--> ||Action Taken: |
|Moved amendment L.001 (Attachment A). The motion |
Moved amendment L.002 (Attachment B). The motion
Moved to refer House Bill 09-1141, as amended, to
|Pass Without Objection|
Pass Without Objection
09:46 AM -- House Bill 09-1141
Representative Ferrandino, prime sponsor, presented House Bill 09-1141 concerning laws enforced by the administrator of the "Uniform Consumer Credit Code". This bill modifies several provisions related to the Uniform Consumer Credit Code (UCCC) and the fees charged by the UCCC administrator, as follows:
- makes consumer leases subject to the same fee caps and procedural requirements that apply to the sale of credit insurance and other products;
- eliminates certain statutory fees and allows the UCCC administrator to set the fees;
- allows the UCCC Cash Fund to retain a fund balance equal to 1/3 of the previous fiscal year's expenditures, instead of 16.5% of the prior year's expenditures;
- includes nonprofit organizations within the definition of a "credit services organization";
- updates a disclosure regarding the availability of free credit reports; and
- exempts providers of debt-management services that are subject to the "Colorado Foreclosure Protection Act" from the "Uniform Debt-Management Services Act".
Background. The Colorado UCCC regulates the terms and conditions of certain consumer credit. It sets maximum rates and charges for some fees, requires disclosure of the cost of credit so consumers may shop for the best rates, and provides remedies for consumers in default. The UCCC administrator in the Department of Law monitors and investigates complaints filed against lenders and creditors.
Representative Ferrandino responded to questions from the committee about nonprofits being removed in the bill. Representative Liston asked about the fees on the bottom of page five.
09:57 AM -- Laura Udis, representing the Colorado Attorney General's Office, testified in support of the bill. She said the bill would modernizes and simplifies the law. Ms. Udis said for consumer leases there are no limits for late fees and bounced checks, and the bill would provide caps on them. She walked the committee through the rest of the changes in the bill. There was a discussion about why nonprofits are being removed on page six.
10:15 AM -- Peter Minahan, representing the Colorado Financial Services Association, testified in support of the bill.
10:18 AM -- Recess
The committee took a recess while waiting for the drafter to draft a conceptual amendment that would include any nonprofit organization in the definition of "credit services organization."
|TIME: || 10:29:14 AM|
|MOTION:||Moved to refer House Bill 09-1141, as amended, to the Committee of the Whole. The motion passed 11-0.|
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS