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Consumer Credit Regulation: Or. Rev. Stat. §§ 725.010 to 725.910 (Consumer Finance Act).

What types of lenders it applies to (e.g., banks vs. non-banks): Applies to any person making “consumer finance loans,” defined as secured or unsecured loans or lines of credit that have periodic payments and terms longer than sixty days. However, the Act does not apply to loans of $50,000 or less (including business and agricultural loans) if interest rate does not exceed the greater of 12%, or 5% in excess of the discount rate. § 725.045 (cross-referencing §§ 82.010, 82.025). See next entry for exemptions from licensure requirement.

Consumer Credit Regulation: 7 Pa. Stat. Ann. §§ 6201 to 6219 (West) (Consumer Discount Company Act).

What types of lenders it applies to (e.g., banks vs. non-banks): Does not apply to banking institutions, building and loan associations, credit unions, or entities licensed by Pennsylvania Secretary of Banking. § 6217.

Licensure requirements and implications of licensure: License required to engage in business of making loans of $25,000 or less and charge more than would be permitted without a license. § 6203.

Consumer Credit Regulation: Tenn. Code Ann. §§ 45-5-101 to 45-5-612 (Industrial Loan and Thrift Companies).

What types of lenders it applies to (e.g., banks vs. non-banks): Industrial loan and thrift companies, industrial banks, industrial investment companies. § 45-5-103(a). Law is inapplicable to banks (other than industrial banks), savings and loan associations, credit unions, insurance companies, any other persons engaged in the business of making loans who are subject to supervision and regulation by a state or federal administrative agency, and licensed pawnbrokers. § 45-5-104.

Consumer Credit Regulation: Tenn. Code Ann. §§ 45-12-101 to 45-12-126 (Flexible Credit Act).

What types of lenders it applies to (e.g., banks vs. non-banks)? Applies to licensees under this statute. § 45-12-103(a).

Licensure requirements and implications of licensure: Licensure required. § 45-12-103(a).

Size and length of loans to which the statute applies, and any restrictions in the statute on these features: Statute limits outstanding principal balance to $4,000. § 45-12-111(d).

Consumer Credit Regulation: Tex. Fin. Code Ann. §§ 346.001 to 346.206 (West) (Revolving Credit Accounts).

What types of lenders it applies to (e.g., banks vs. non-banks): Applies to “revolving credit accounts,” defined to include both those by which a consumer may obtain direct loans (“revolving loan accounts”) and those that provide credit cards that can be used to purchase goods or services from a third party or obtain loans from the creditor or a third party (“revolving triparty accounts”). §§ 346.003, 346.004.

Consumer Credit Regulation: Va. Code Ann. § 6.2-312 (Open-End Credit Plans); Va. Code Ann. §§ 6.2-313, 6.2-318.

What types of lenders it applies to (e.g., banks vs. non-banks): Applies broadly to lenders engaged in extending credit under open-end credit plans, whether or not lender maintains a physical presence in Virginia. Section does not apply to banks, savings institutions, or credit unions. § 6.2-312(A). Licensed short-term loan lenders are prohibited from extending open-end credit under this section. § 6.2-312(C).

Consumer Credit Regulation: Del. Code Ann. tit. 5, §§ 2214 to 2226 (Revolving Credit).

What types of lenders it applies to (e.g., banks vs. non-banks): Persons in the business of lending money, except banks, federal credit unions, insurance companies, and others that are lending money under the authority of another law. §§ 2201, 2202, 2215.

Licensure requirements and implications of licensure: Licensed required if person makes more than five loans within any twelve-month period. § 2202.

Size and length of loans to which the statute applies, and any restrictions in the statute on these features: Statute is silent.

Consumer Credit Regulation: Idaho Code §§ 28-41-101 to 28-49-107 (Credit Code).

What types of lenders it applies to (e.g., banks vs. non-banks): Applies broadly to all creditors, including small loan companies, licensed lenders, finance companies, sales finance companies, industrial banks and loan companies, and commercial banks. § 28-41-107. Does not apply to extensions of credit to government agencies, sale of insurance, transactions under public utility or common carrier tariffs in some circumstances, or the rates and charges of licensed pawnbrokers. § 28-41-202.

Consumer Credit Regulation: 815 Ill. Comp. Stat. § 205/4.2 (Revolving Credit; Billing Statements; Disclosures).

What types of lenders it applies to (e.g., banks vs. non-banks): Banks, savings and loan associations, credit unions, lenders licensed under Consumer Finance Act, Consumer Installment Loan Act or Sales Finance Agency Act, and any other lender. § 205/4.2.

Licensure requirements and implications of licensure: License is required for non-depository lender to charge more than 18%. § 205/4.2.

Size and length of loans to which the statute applies, and any restrictions in the statute on these features: Statute is silent.

Consumer Arbitration Agreements: 8.7.3.3 Loser Pays Rule Unconscionable

Loser pays rules render arbitration clauses unconscionable in many jurisdictions, as a “reallocation of the risks of the bargain in an objectively unreasonable or unexpected manner.”235 As the Ninth Circuit has put it, these types of provisions “demand [that consumers arbitrate] at risk of incurring greater costs than they would bear if they were to litigate their claims in federal court.”236

Consumer Arbitration Agreements: 8.7.4.3 Non-Mutual Clauses That Appear to Be Mutual

A business, particularly a creditor, may draft its arbitration provisions to give the appearance of binding both sides to arbitrate, but have the practical effect of not binding the business. As a result, a consumer’s action would be forced into arbitration while a creditor can continue to use the courts to collect on its debts from the consumer.

Consumer Arbitration Agreements: 8.7.4.4 Non-Mutual Appeal Rights

Arbitration agreements may appear facially neutral in allowing both sides to appeal an arbitrator’s award, but as a practical matter they may be drafted so that only the business and not the consumer is likely to be able to appeal from an award. The most common way to do this is to allow appeal of awards only if the award is for more than a certain dollar amount.

Consumer Arbitration Agreements: 8.7.6.2.3 Multiple damages

While arbitration agreements sometimes include provisions prohibiting punitive damages, it is rarer for there to be explicit provisions limiting multiple damages. The first question is whether a limitation on punitive damages applies to treble or other multiple damages recoveries. If not, then the consumer can proceed to seek multiple damages in arbitration. If treble damages are specifically prohibited, that can be an unenforceable provision when state law provides for their recovery.291