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House committee advances HB 182 after amendments on consumer protections and loan reporting
Summary
A House committee voted 8-2 to favorably report House Bill 182 as amended, adopting changes that add an affirmative defense modeled on CFPB language, remove a provision granting attorney's fees, require loan-default reporting to regulators, and change consumer-payment language.
A House committee voted 8-2 to favorably report House Bill 182 as amended, approving a package of changes lawmakers said clarify defenses for covered entities and expand reporting to improve regulators’ visibility into loan defaults.
Representative Hillier, who offered four amendments during the committee’s fourth hearing, said one change "creates an affirmative defense, mirroring language from the CFPB." He described that amendment as intended to bring statutory language in line with court definitions and to "make the consumer whole with interest." The committee accepted that amendment without objection.
Hillier also moved an amendment to remove a provision in the original bill that would have awarded attorney’s fees. "There was a provision in the original bill that granted attorney's fees. This removes that," Hillier said; the chair asked for objections and the amendment was accepted.
A separate amendment requires reporting of loan defaults to give regulators and policy experts a clearer picture of default activity. Hillier said the reporting provision responded to a request from the ranking member and would help the department and financial institutions better assess the size and scope of defaults.
Another adopted change alters statutory wording related to consumer payments, replacing permissive language with mandatory language in specified circumstances, according to Hillier.
After the amendments were adopted, Vice Chair Fazoli moved to "favorably report House Bill 182 as amended, and recommend its passage." The clerk called the roll; the committee recorded the following votes: Chair LaRae — yes; Vice Chair Fazoli — yes; Ranking Member Bridal Aquilo — yes; Representative Barhorst — yes; Blackshear — no; Representative Hillier — yes; Lorenz — yes; Plummer — yes; Romer — yes; Simms — no. The motion passed 8-2, and the chair asked the Legislative Service Commission to harmonize the amendments into a sub-bill.
The committee concluded its fourth hearing on House Bill 182 and adjourned. No further action was recorded in the transcript.
