News From The States
DES MOINES, Iowa -A debt-collection bill before the Iowa legislature would include CUSOs among the entities that are exempt from certain debt-collection disclosure requirements. According to the Iowa league, at present Iowa's Consumer Credit Code specifies that when collecting a debt, the collector must disclose in an initial, written communication that the debt collector is trying to collect a debt and any data obtained will be used for that purpose.
AUSTIN, Texas-Seeking to overhaul this state's school finance system, House Bill 3 would restructure the current tax code and, if passed, would have an effect on credit unions. The bill eliminates the current state franchise tax, and with it the franchise tax exemption used by credit unions. Separately, it imposes a new payroll tax on all businesses, including state-chartered CUs. The Texas league opposes the bill.
LITTLE ROCK, Ark.-A bill that would make it illegal for payday lenders to make loans of less than $3,000 has been introduced in the Arkansas state Senate. The bill, from Sen. Tracy Steele (D-North Little Rock), would prohibit a payday lender from garnisheeing the wages of a member of the military. As written, the law would impose a 50% tax on loans that violate the provision to limit loans to $3,000 or more, and make it a misdemeanor to make loans less than $3,000, with punishment stipulated at not more than $5,000 in fines or imprisonment of not more than a year.