§480J-5 Maximum loan amount; prohibition against multiple loans.

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§480J-5 Maximum loan amount; prohibition against multiple loans. [Repeal and reenactment on June 30, 2030. L 2025, c 116, §5.]

(a)A lender shall not lend an amount greater than $1,500 nor shall the amount financed exceed $1,500 by any one lender at any time to a consumer.

(b)Except as otherwise provided in section 480J-8, an installment lender shall take reasonable measures to ensure that no consumer has more than one installment loan outstanding at a time from any of the following:

(1)The installment lender;

(2)A person related to the installment lender by common ownership or control;

(3)A person in whom the installment lender has any financial interest of ten per cent or more; or

(4)Any employee or agent of the installment lender.

(c)An installment lender that receives written or electronic confirmation from each consumer that the consumer does not have any outstanding installment loans from the entities listed in subsection

(b)as of the date the consumer enters into an installment loan with the installment lender shall be deemed to have met the requirements of this section.

(d)If a consumer's spouse obtains an installment loan voluntarily and separately from the consumer, and subsequently the consumer obtains an installment loan voluntarily and separately from the consumer's spouse, where neither the consumer nor the consumer's spouse are coborrowers with each other on either loan, and the consumer's action is documented in writing, either in the written agreement required under section 480J-3 or in a subsequent agreement, signed by the consumer, and retained by the lender, the secondary transaction shall not be considered a violation of this section. [L 2021, c 56, pt of §2; am L 2025, c 116, §3]