PRINTER'S NO. 3562
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2429
Session of
2018
INTRODUCED BY HEFFLEY, JAMES, SCHWEYER, MARSICO AND FRITZ,
MAY 23, 2018
REFERRED TO COMMITTEE ON COMMERCE, MAY 23, 2018
AN ACT
Amending the act of December 16, 1992 (P.L.1144, No.150),
entitled "An act regulating credit services; prohibiting
certain activities; providing for certain information to be
given to buyers, for the contents of contracts and for
enforcement; prohibiting advance fees by loan brokers; and
providing penalties," further providing for definitions, for
prohibited activities, for contents of information sheet and
for contract.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "credit services organization"
in section 2 of the act of December 16, 1992 (P.L.1144, No.150),
known as the Credit Services Act, is amended to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Credit services organization."
(1) A person who, with respect to the extension of
credit by others, sells, provides or performs or represents
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that he or she can or will sell, provide or perform any of
the following services in return for the payment of money or
other valuable consideration, which shall not be considered
interest:
(i) Improving a buyer's credit record, history or
rating.
(ii) Obtaining an extension of credit for a buyer.
(iii) Providing advice or assistance to a buyer with
regard to either subparagraph (i) or (ii).
(2) The term shall not include any of the following:
(i) Any person organized, chartered or holding a
license or authorization certificate to make loans or
extensions of credit pursuant to the laws of the
Commonwealth or the United States who is subject to
regulation and supervision by an official or agency of
the Commonwealth or the United States.
(ii) Any bank, bank and trust company, trust
company, savings bank, Federal savings and loan
association or savings bank located in this Commonwealth
or savings association or any subsidiary or affiliate of
such institution whose deposits are eligible for
insurance by the Federal Deposit Insurance Corporation,
the Savings Association Insurance Fund of the Federal
Deposit Insurance Corporation or the Pennsylvania Savings
Association Insurance Corporation.
(iii) Any nonprofit organization exempt from
taxation under section 501(c)(3) of the Internal Revenue
Code of 1954 (68A Stat. 3, 26 U.S.C. § 1 et seq.).
(iv) Any person licensed as a real estate broker
where the person is acting within the course and scope of
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that license.
(v) Any person admitted to practice law in this
Commonwealth where the person renders services within the
course of such practice.
(vi) Any broker-dealer registered with the
Securities and Exchange Commission or the Commodity
Futures Trading Commission where the broker-dealer is
acting within the course and scope of such regulation.
(vii) Any consumer reporting agency as defined in
the Fair Credit Reporting Act (Public Law 91-508, 15
U.S.C. § 1681 et seq.).
* * *
Section 2. Section 3 of the act is amended by adding a
paragraph to read:
Section 3. Prohibited activities.
A credit services organization and its salespersons, agents
and representatives who sell or attempt to sell the services of
a credit services organization shall not do any of the
following:
* * *
(6) Obtain or assist in obtaining an extension of credit
for a buyer from one or more entities not under common
ownership or control without assessing the buyer's ability to
repay the extension of credit.
Section 3. Sections 5(3) and 6(a)(2) of the act are amended
to read:
Section 5. Contents of information sheet.
The information sheet shall include all of the following:
* * *
(3) A complete and detailed description of the services
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to be performed by the credit services organization for or on
behalf of the buyer and the total amount, including fees and
interest, the buyer will have to pay or become obligated to
pay for the services.
* * *
Section 6. Contract.
(a) Contents.--Every contract between the buyer and a credit
services organization for the purchase of the services of the
credit services organization shall be in writing, shall be
dated, shall be signed by the buyer and shall include all of the
following:
* * *
(2) The terms and conditions of payment, including the
total of all payments to be made by the buyer, whether to the
credit services organization or to some other person. The
total of all payments shall include fees and interest.
* * *
Section 4. This act shall take effect in 60 days.
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