Amendment_Report_for

House Amendments to Senate Bill No. 2374

TO THE SECRETARY OF THE SENATE:

THIS IS TO INFORM YOU THAT THE HOUSE HAS ADOPTED THE AMENDMENTS SET OUT BELOW:

AMENDMENT NO. 1

AMEND by inserting the following paragraph after line 22:

"In addition, after the licensee has fully approved the loan to the borrower, the licensee may offer the borrower the opportunity to purchase an auto club membership. The licensee shall inform the borrower in writing that the purchase of an auto club membership is optional and is not required as a condition of receiving the loan, and that failure to purchase an auto club membership will not affect the licensee's approval of the loan or the receipt of the loan by the borrower. If the borrower chooses to purchase an auto club membership, the licensee shall allow the borrower to pay the cost of the auto club membership using funds other than the proceeds of a loan or have the cost deducted from the proceeds of any loan obtained from the licensee. The borrower shall be allowed to cancel the auto club membership for a full refund of the purchase price at any time within thirty (30) days after the date of purchase from the licensee if the borrower has not used any of the services provided through the auto club membership. The commissioner shall monitor the number of loans made by licensees with which the borrower chooses to purchase an auto club membership, and shall report that information to the Chairmen of the House Banking and Financial Services Committee and the Senate Business and Financial Institutions Committee by January 1, 2007. This paragraph shall stand repealed on July 1, 2008."

AMEND FURTHER the title by deleting lines 2 through 5 in their entirety and inserting in lieu thereof the following:

"TO AUTHORIZE SMALL LOAN LICENSEES TO OFFER BORROWERS THE OPPORTUNITY TO PURCHASE AUTO CLUB MEMBERSHIPS AFTER THE LICENSEE HAS FULLY APPROVED THE LOAN TO THE BORROWER; TO REQUIRE THE LICENSEE TO INFORM THE BORROWER IN WRITING THAT THE PURCHASE OF AN AUTO CLUB MEMBERSHIP IS NOT REQUIRED AS A CONDITION OF RECEIVING THE LOAN, AND THAT FAILURE TO PURCHASE AN AUTO CLUB MEMBERSHIP WILL NOT AFFECT THE LICENSEE'S APPROVAL OF THE LOAN OR THE RECEIPT OF THE LOAN BY THE BORROWER; TO AUTHORIZE THE BORROWER TO CANCEL THE AUTO CLUB MEMBERSHIP FOR A FULL REFUND OF THE PURCHASE PRICE WITHIN THIRTY DAYS AFTER THE DATE OF PURCHASE; AND FOR RELATED PURPOSES."