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House passes Department of Financial Institutions bill updating consumer protections and credit‑union rules
Summary
Senate Bill 464, the Department of Financial Institutions annual bill, advanced through the House on March 26, 2025, aligning state law with federal references, changing certain credit‑union rules, closing a loan‑calculation loophole and extending consumer protection options for law enforcement; the House recorded a 92‑3 roll call.
The Indiana House passed Senate Bill 464 on March 26, 2025, a biennial bill from the Department of Financial Institutions that updates state law for alignment with federal changes and makes several consumer protection adjustments.
Representative Teska, who presented the bill, described four principal elements: an annual alignment of state code citations with federal law dates; an update to credit‑union audit and voting rules to harmonize them with banks and to allow absentee voting in merger approvals; a fix to close a discrepancy in total finance charge calculations created by earlier revisions; and a clarification that ‘‘principal’’ does not include loan proceeds held as security to prevent certain lenders from charging interest on amounts not disbursed.
In committee, lawmakers approved an amendment that increased the permissible maximum percentage for subordinate‑lien mortgage prepaid fees from 2% to 3% to conform with qualified mortgage rules, and another amendment clarified that law enforcement agencies can seek relief through the attorney general under the Deceptive Consumer Sales Act when purchasing defective equipment.
Representative Andrade spoke in support, saying the bill strengthens consumer protection for state and local law enforcement when purchasing vehicles and equipment. The House adopted the bill on a roll call reported on the floor as 92 ayes and 3 noes.
What the bill does: updates code references to federal law, aligns credit‑union governance and audit requirements, corrects a calculation discrepancy related to finance charges, adjusts the subordinate‑lien prepaid fee cap to 3%, and expands the Deceptive Consumer Sales Act remedy avenue for law enforcement.
Outcome: House passage recorded; clerk to inform the Senate.
