The League went to work last General Assembly on a piece of legislation (Sub. House Bill 38) to fix the current requirement to provide a debtor written notice before a collection attempt is made on a loan secured by a residential piece of property. Since “collect” or “attempt to collect” are not clearly defined in the statute, the required notices are sent before and after every communication with the borrower – often causing confusion or frustration when members receive the formal notice before any other communication. Time ran out last year, but it was reintroduced earlier this year as House Bill 133/Senate Bill 62. Most importantly, this fix will not add any additional burden on credit unions by simply clarifying the notice must be sent 30 days before an action of foreclosure and can also be included on or accompany a prior notice as well as clearly defining “restitution.”
We know that credit unions take the People Helping People philosophy to heart and that unnecessary and ambiguous regulation can create a burden for credit unions by pulling you away from focusing on better serving your members. Help us get this legislation across the finish line by submitting or customizing the pre-written email to your state senator through VoterVoice.
Contact Advocacy Coordinator Jamila Collins for questions or more information.
T: (614) 923-9763