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Committee approves change to retail auto installment statute for submonthly payment plans
Summary
The House Banking and Insurance Committee voted to report Senate Bill 145 favorably after Senator David Givens said the measure shortens the time a lender must wait before beginning collections on retail installment contracts with payment periods under 28 days and harmonizes a dollar threshold across statutes.
State Senator David Givens introduced Senate Bill 145 to the House Standing Committee on Banking and Insurance, saying the bill adjusts how retail installment contracts are treated when payments are more frequent than monthly and corrects an inconsistent dollar reference in statutes.
The bill shortens the waiting period before a retailer may start collections on retail automobile installment contracts that have payment intervals of less than 28 days. Senator Givens told the committee those lenders currently must wait “2 or 3 payments” under existing statute; the change would allow collections to begin after three days for contracts with installment intervals shorter than 28 days. Givens also said the bill amends two statutory chapters to align a referenced amount — updating a $10 reference to $15 in KRS Chapter 371 so the statutes match.
The committee received no substantive questions and proceeded to a roll call vote after Representative Lockett moved the bill and Representative Hebron seconded the motion. The secretary called the roll and the chair announced, “Senate Bill 145 does pass with favorable expressions.” The transcript records the committee’s favorable report; no committee vote tally was provided in the transcript.
Why it matters: the change affects how quickly a retail lender may initiate collections on high-frequency installment contracts for vehicles and resolves an inconsistency in statutory language across KRS chapters referenced by the bill. The committee forwarded the bill with a favorable expression for consideration on the House floor.
No amendments or legal challenges were recorded during this committee presentation.
Next steps: the committee reported the bill favorably to the House floor for further action.
