On May 6, 2019, Indiana enacted House Bill 1136 (HB 1136), which amends the late charges permitted for consumer loans under the Indiana Uniform Consumer Credit Code (IUCCC), with an effective date of July 1, 2019. The maximum delinquency charges for installment payments not paid within 10 days of the scheduled due date will be:
a) $5.00 for loans with installment payments due every 14 days or less (bi-weekly);
b) $25.00 for loans with installment payments due every 15 days or more;
c) $25.00 for loans with a single installment due at least 30 days after the loan is made.
The Indiana UCCC definition of “consumer loan” does not include first lien mortgage transactions, unless by agreement (see Ind. Code Ann. 24-4.5-3-105). Therefore, effective July 1, 2019, the DocMagic system and late fee matrix will be updated to reflect the increased maximum delinquency charge of $25.00 for junior liens with installment payments due at least every 15 days or more.
HB 1136 also amends IUCCC provisions authorizing specific additional charges for revolving loans to allow lenders to contract for a transaction fee that may not exceed the greater of 2% of the transaction or $10. Currently, the law authorizes a transaction fee in the lesser of these two amounts. Accordingly, DocMagic will update the State Specific Fee Matrix for Indiana to reflect the maximum transaction fee allowed for revolving loans.