HB280: relative to interest rate terms in contracts for providing credit to consumers.

HB 280 – AS INTRODUCED

2011 SESSION

11-0433

08/09

HOUSE BILL 280

AN ACT relative to interest rate terms in contracts for providing credit to consumers.

SPONSORS: Rep. Pitre, Straf 3; Rep. Pepino, Hills 11

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill limits the interest rate that may be charged by New Hampshire creditors under an open-end credit plan to 6 percentage points above the prime interest rate, unless the consumer has failed to make a payment due under the plan during the preceding 12 months.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0433

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to interest rate terms in contracts for providing credit to consumers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Trade and Commerce; Regulation of Consumer Credit Transactions; Interest on Open-End Credit Plans. Amend RSA 358-K by inserting after section 4-a the following new section:

358-K:4-b Interest on Open-End Credit Plans. The maximum rate of interest that may be charged under any open-end credit plan shall be 6 percentage points above the prime interest rate, unless the consumer has failed to make a payment due under the plan during the preceding 12 months. For purposes of this section, the bank commissioner shall determine the prime interest rate on a quarterly basis.

2 Effective Date. This act shall take effect January 1, 2012.