HOUSE BILL ANALYSIS

                  HB 2054

  Title:  An act relating to the financing of goods by sellers of the goods.

Brief Description:  Regulating sellers who finance the goods they sell.

Sponsors:  Representatives Quall, Benson, Hatfield and Cairnes.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Meeting Date: February 23, 1999

Bill Analysis Prepared by: Charlie Gavigan  (786-7340)

Background:  Retail installment contracts and retail credit cards are regulated by state law.  These are transactions between a particular retailer and a consumer, such as a department store or automobile dealer installment contract or a department store credit card agreement.  Retail installment contracts generally are required to provide certain disclosures, describe the contents of an installment contract, and prohibit certain practices related to installment contracts.

Summary of Bill: The principal balance, which basically is the amount borrowed, can include amounts paid by the retailer to pay off a loan on similar goods that are traded in as part of the sale.  The portion of the principal that is used to pay off the loan on a trade-in must be disclosed in the installment contract.

  Appropriation:  None.

Fiscal Note:  Not requested.

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

Rulemaking Authority:  Not addressed.