HOUSE  BILL  ANALYSIS

                 ON

             HB 1712

Brief Description: Revising loan fees on the retail sale of an automobile.

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BACKGROUND:  The Retail Installment Sales Act (RISA) regulates retail credit in Washington.  RISA generally divides retail transactions into closed-end and open-end transactions.  Closed-end transactions are one-time contracts for the purchase of identified goods with a fixed repayment period; for example credit extended by car and boat dealers.  Open-end transactions permit periodic use of credit with an open-ended repayment period. 

RISA does not limit the interest charged on retail transactions, although no fees are allowed. 

SUMMARY: An automobile dealer may charge a loan fee up to fifty dollars for making a retail loan on the sale of an automobile.

     Fiscal Note: Not Requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Rulemaking: Not addressed.