HB 0052 | Prohibits unfair or deceptive home improvement loans |
HCS/HB 52- This act prohibits certain unfair or deceptive practices relating to home improvement loans. This act prohibits home solicitations where a home improvement loan is made encumbering the person's home to pay the loan and where the practice violates the federal Truth in Lending Act by:
1) Extending credit under a mortgage for home improvements without regard for repayment ability;
2) Paying a contractor from the proceeds of a mortgage in a way other than the prescribed way; and
3) Selling or assigning certain mortgages without furnishing notice that the mortgage is subject to special rules under the federal Truth in Lending Act.
A person violating this act is guilty of a Class A
misdemeanor.
STEPHEN WITTE