SB 880 - This act modifies the maximum penalties a consumer must pay for late payments on certain credit transactions. Under the act, a lender may charge a late payment of 2% of the minimum payment due or $15, whichever is less, on a small loan payment which is fifteen days or more in default.
This act also modifies the late charge on retail credit sales. Under the act, the maximum late charge that can be charged is $5 (reduced from $10) or $2 (reduced from $5) when the monthly installment due is less than $25.
This act is similar to SB 138 (2003).
JIM ERTLE