Louisiana Governor Bobby Jindal recently signed HB 766 into law, which amends numerous provisions regulating creditors engaging in any consumer credit or deferred presentment transaction. Under the law, a creditor may not take assignments, undertake direct collection of payments, or enforce rights against consumers arising from consumer loans without first obtaining a license. However, a creditor may collect and enforce consumer loan obligations of which he has taken assignment for three months without a license if:
He notifies the Commissioner in writing of his intention to take assignments at least 10 days before the assignment is made
The Commissioner does not object
The creditor promptly applies for a license afterward that is not denied
Notably, in a change from current law, the amendment eliminates the exemption for creditors that do not have in-state offices. Under the new law, such creditors will be required to obtain a license regardless of whether they maintain an in-state office.
The bill makes a number of other changes to the laws governing licensees, among them, changes to record-keeping requirements; requirements regarding registration with the Louisiana Secretary of State; finance charge and fee restrictions; requirements pertaining to payment plans for consumers who are unable to repay their consumer loans; and public notice requirements mandating that licensees post certain information at their lending locations and websites.
The changes take effect January 15, 2015.