IndianaSB 464First Regular Session 124th General Assembly (2025)SenateWALLET

Financial institutions and consumer credit.

Sponsored By: Eric Bassler (Republican)

Signed by Governor

Summary

Provides that a reference to federal law in: (1) the First Lien Mortgage Lending Act; (2) the Uniform Consumer Credit Code (UCCC); or (3) the Indiana Code title governing financial institutions; is a reference to the law as in effect December 31, 2024 (rather than December 31, 2023, under current law). Amends the definition of "principal" for purposes of the UCCC provisions governing consumer loans to specify that the term does not include any loan proceeds held as security for the loan. Makes a technical change to the Indiana Code provision governing the prepayment of consumer loans to incorporate a cross reference to the Indiana Code provision setting forth the authorized nonrefundable prepaid finance charge for supervised loans. (Current law references only the authorized nonrefundable prepaid finance charge for consumer loans other than supervised loans.) Amends the definition of "consumer transaction" for purposes of the deceptive consumer sales act (act) to include the provision of a product or service to a: (1) state law enforcement agency; or (2) local law enforcement agency; in Indiana. Amends the definition of "supplier" for purposes of the act to include an entity that provides a product or service to a state or local law enforcement agency in Indiana. Provides that an action that arises from a transaction involving: (1) a state law enforcement agency may be brought and enforced only by the attorney general; and (2) a local law enforcement agency may be brought and enforced only by an attorney acting on behalf of the local law enforcement agency involved in the transaction, unless the local unit of government served by the local law enforcement agency requests the attorney general to bring and enforce an action on behalf of the local unit. Amends the Indiana Code provision governing audit requirements for credit unions to provide that department of financial institutions may establish by policy or rule accounting and auditing standards necessary to define the audit requirements.

insurance and financial institutionsthe housefinancial institutions

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 2 costs, 2 mixed.

Stronger court remedies for harmed consumers

Beginning July 1, 2025, Indiana’s Attorney General can ask courts to stop unfair, abusive, or deceptive consumer practices. In covered cases, courts can order unlawfully taken money held in escrow for return to affected consumers. Courts can also require suppliers to pay reasonable investigation and prosecution costs, including expert and court fees. Refunds require a court order, and the law’s filing deadline still applies.

New charge calculations for consumer borrowers

Beginning July 1, 2025, certain allowed, nonrefundable prepaid fees are excluded when checking a prepaid consumer loan’s charge limit. This applies to loans outside the law’s prepayment rebate rules. The limit measures charges for the time the loan was in effect, so excluding fees can affect refunds or reductions. Separately, loan money held as security for that loan no longer counts as principal under Indiana consumer-credit law.

Updated lending rules and compliance duties

Beginning July 1, 2025, Indiana’s first-lien mortgage and consumer-credit laws use federal law as of December 31, 2024. The prior reference date was December 31, 2023. Consumer-credit requirements also include related rules and guidance adopted by Indiana’s Department of Financial Institutions. Covered businesses must follow those requirements when complying with the consumer-credit law.

Consumer safeguards cover police agency purchases

Beginning July 1, 2025, consumer-protection rules cover products and services provided to Indiana state and local law-enforcement agencies. Providers can count as suppliers even without dealing directly with consumers. Only Indiana’s Attorney General can bring and enforce these claims for state agencies. For local agencies, only an attorney acting for the agency can act, unless the local government asks the Attorney General.

Annual audits strengthen credit union oversight

Beginning July 1, 2025, each Indiana credit union’s supervisory committee must conduct or arrange an audit every calendar year. Credit unions with at least $5 million in assets must use an outside certified public accountant. The committee reports to directors, and the board submits the audit and a complete financial condition statement to state regulators. Regulators can demand more information or an outside audit when they question the credit union’s safety and soundness. An audit or financial condition summary must be read at the annual meeting and kept in the credit union’s records.

Sponsors & Cosponsors

Sponsor

  • Eric Bassler

    Republican • Senate

Cosponsors

  • Jake Teshka

    Republican • House

  • Mike Andrade

    Democratic • House

  • Mike Gaskill

    Republican • Senate

  • Scott Baldwin

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 364 • No: 4

Senate vote • 4/24/2025

Rules Suspended. Conference Committee Report 2: adopted by the Senate

Yes: 48 • No: 1

House vote • 4/24/2025

Rules Suspended. Conference Committee Report 2: adopted by the House

Yes: 85 • No: 0

House vote • 4/23/2025

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 91 • No: 0

House vote • 3/25/2025

Third reading: passed

Yes: 92 • No: 3

Senate vote • 1/30/2025

Third reading: passed

Yes: 48 • No: 0

Actions Timeline

  1. Public Law 206

    5/6/2025Senate
  2. Signed by the Governor

    5/6/2025Senate
  3. Signed by the President of the Senate

    4/29/2025Senate
  4. Signed by the Speaker

    4/25/2025House
  5. CCR # 2 filed in the Senate

    4/24/2025Senate
  6. Motion to withdraw CCR #1: prevailed

    4/24/2025Senate
  7. Motion to Rescind CCR #1: adopted voice vote

    4/24/2025House
  8. CCR # 2 filed in the House

    4/24/2025House
  9. Signed by the President Pro Tempore

    4/24/2025Senate
  10. Rules Suspended. Conference Committee Report 2: adopted by the House; Roll Call 562: yeas 85, nays 0

    4/24/2025House
  11. Rules Suspended. Conference Committee Report 2: adopted by the Senate; Roll Call 520: yeas 48, nays 1

    4/24/2025Senate
  12. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 527: yeas 91, nays 0

    4/23/2025House
  13. CCR # 1 filed in the Senate

    4/22/2025Senate
  14. CCR # 1 filed in the House

    4/22/2025House
  15. Senate conferees appointed: Bassler and Qaddoura

    4/10/2025Senate
  16. House advisors appointed: Lehman, Pierce K and Dant Chesser

    4/10/2025House
  17. House conferees appointed: Teshka and Andrade

    4/10/2025House
  18. Senate advisors appointed: Randolph Lonnie M, Baldwin and Gaskill

    4/10/2025Senate
  19. Motion to dissent filed

    4/8/2025Senate
  20. Senate dissented from House amendments

    4/8/2025Senate
  21. Returned to the Senate with amendments

    3/26/2025House
  22. Third reading: passed; Roll Call 314: yeas 92, nays 3

    3/25/2025House
  23. Second reading: ordered engrossed

    3/24/2025House
  24. Committee report: amend do pass, adopted

    3/20/2025House
  25. Representative Andrade added as cosponsor

    3/20/2025House

Bill Text

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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