Wyoming recently adopted House Bill (HB) 0008, which amends provisions of the Wyoming Uniform Consumer Credit Code including, but not limited to, refunds for certain credit insurance products upon prepayment, caps on credit service and consumer loan finance charges, and limitations regarding the use of multiple agreements. The provisions of HB 0008 become effective July 1, 2021.
HB 0008 requires a creditor, no later than sixty days after termination of a consumer credit sale or consumer loan, to facilitate any refund or credit required by law for insurance or other loan products that protect consumers and cease when the credit transaction is terminated. Moreover, HB 0008 requires a person to be registered to engage in the business of making consumer credit sales and prescribes maximum charges for all creditors extending consumer credit. For any unpaid balance on the date that a credit service charge is applied, the seller may receive a charge not exceeding three dollars for accounts with a billing cycle of thirty days or more. For accounts on a shorter billing cycle, the seller may receive a charge not exceeding the pro rata part of three dollars.
Similarly, HB 0008 requires a person to be licensed to engage in the business of sales financing, making consumer loans, or taking assignments of non-servicing rights. A lender may contract for and received a loan finance charge; however, it must not exceed the equivalent of 36% per year on the part of the unpaid balances of the principal that is equal to or less than $1,000 and shall not exceed the equivalent of 21% per year on the part of the unpaid balances of the principal that is greater than $1,000. If there is an unpaid balance on a revolving account on the date that the loan finance charge is applied, the lender may receive a charge not exceeding three dollars for accounts with a billing cycle of thirty days or more or a charge not exceeding the pro rata part of three dollars for accounts with a shorter billing cycle.
HB 0008 also prohibits lenders from allowing a person or a married couple to become obligated in any way under more than one loan agreement with the lender with the intent to obtain a higher rate of loan finance charge than would otherwise be permissible or to avoid disclosure of an annual percentage rate under the laws governing disclosure and advertising.