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Senate committee approves SB 145 to raise late-fee cap for retail installment contracts
Summary
A Kentucky Senate committee on an unnamed date approved Senate Bill 145 (committee substitute), aligning fee rules for vehicle and non‑vehicle retail installment contracts and raising the late‑fee cap for non‑vehicle contracts from $10 to $15.
A Kentucky Senate committee on a procedural motion approved Senate Bill 145, adopting a committee substitute that aligns non‑vehicle retail installment contract rules with vehicle contracts and raises a late‑fee cap from $10 to $15.
Senator Givens introduced the committee substitute, telling the panel, "Chairman Carpenter, members of the committee. Thank you for the chance to present senate bill 1 45 as admitted by the committee sub for your consideration." He said the bill centers on KRS Chapter 190, which governs vehicle retail installment contracts, and that the substitute brings KRS Chapter 371—governing non‑vehicle retail installment contracts such as purchases of televisions and couches—into alignment for fee and enforcement timing.
The bill responds to lenders that use weekly installment payment models, Givens said, noting the current statute requires a set number of days after a missed payment before a lender can begin enforcement actions. He told the committee the substitute also updates a fee amount that has not changed since 1996, raising the non‑vehicle late‑fee cap from $10 to $15 so it matches the vehicle‑contract provision.
Senator Rocky Adams spoke during the roll call and explained his vote: "I'm gonna vote yes. It does make me a little nervous when we start talking about delinquency on low value items, you know, sort of household goods and things about how that could inadvertently, impact our consumers, but I trust senator Givens. I know he's very thoughtful on these issues and no 1 has come to me with any concerns about it, so I'm gonna vote yes today." The committee proceeded to a voice vote, and members recorded unanimous support.
The committee substitute for SB 145 was adopted and the bill passed out of committee as amended. The committee did not record extended debate or additional amendments during the session.
