Senate Bill sb0748

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2007                                   SB 748

    By Senator Justice





    16-866-07                                               See HB

  1                      A bill to be entitled

  2         An act relating to contracts for loans or

  3         credit; creating s. 501.0119, F.S.; prohibiting

  4         creditors from increasing rates of interest or

  5         imposing fees on borrower accounts based upon

  6         certain activities of the borrower; providing a

  7         definition; providing for voiding certain

  8         contract, loan, or credit agreement terms or

  9         provisions; providing an effective date.

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11  Be It Enacted by the Legislature of the State of Florida:

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13         Section 1.  Section 501.0119, Florida Statutes, is

14  created to read:

15         501.0119  Contracts for loans or credit; increasing

16  rate of interest or imposing fees prohibited; certain

17  instruments void.--

18         (1)  A creditor may not increase the rate of interest

19  upon the existing account of a borrower or impose a fee upon

20  the outstanding balance owed by a borrower if the increased

21  rate of interest or the imposition of a fee is based solely

22  upon the borrower's indebtedness to any other creditor, an

23  adverse change in the borrower's consumer credit report or

24  credit score, or the borrower's failure to make timely

25  payments to any other creditor.

26         (2)  For purposes of this section, the term "account"

27  includes, but is not limited to, loans, advances, lines of

28  credit, credit cards, open-end credit accounts, and similar

29  financial transactions.

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






    Florida Senate - 2007                                   SB 748
    16-866-07                                               See HB




 1         (3)  Notwithstanding any other provision of law, any

 2  term or provision in a contract, loan, or credit agreement

 3  contrary to this section is void.

 4         Section 2.  This act shall take effect July 1, 2007.

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