HB 421

1	A bill to be entitled
2	An act relating to contracts for loans or credit; creating
3	s. 501.0119, F.S.; prohibiting creditors from increasing
4	rates of interest or imposing fees on borrower accounts
5	based upon certain activities of the borrower; providing a
6	definition; providing for voiding certain contract, loan,
7	or credit agreement terms or provisions; providing an
8	effective date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1.  Section 501.0119, Florida Statutes, is created
13	to read:
14	501.0119  Contracts for loans or credit; increasing rate of
15	interest or imposing fees prohibited; certain instruments
16	void.--
17	(1)  A creditor may not increase the rate of interest upon
18	the existing account of a borrower or impose a fee upon the
19	outstanding balance owed by a borrower if the increased rate of
20	interest or the imposition of a fee is based solely upon the
21	borrower's indebtedness to any other creditor, an adverse change
22	in the borrower's consumer credit report or credit score, or the
23	borrower's failure to make timely payments to any other
24	creditor.
25	(2)  For purposes of this section, the term "account"
26	includes, but is not limited to, loans, advances, lines of
27	credit, credit cards, open-end credit accounts, and similar
28	financial transactions.
29	(3)  Notwithstanding any other provision of law, any term
30	or provision in a contract, loan, or credit agreement contrary
31	to this section is void.
32	Section 2.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.