§ 28-1-2-40 — Notice that financial institution is not in substantial compliance; hearing

Indiana § 28-1-2-40

• Jurisdiction: Indiana
• Art. 1: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 2: Powers and Duties of the Department

Text

(a) As used in this section, "act" refers to the
federal Credit Card Accountability Responsibility and Disclosure Act
of 2009 as it applies to Indiana borrowers.
(b) If the department receives credible evidence from any source
that a financial institution that issues to Indiana borrowers an
unsecured credit card that is not a debit card, as a card issuer (as
defined in 15 U.S.C. 1602(o) is not in substantial compliance with the
act, the director of the department shall send a notice of the evidence
by certified mail to the financial institution's chief executive officer.
The notice must:
(1) set forth the provisions of IC 5-13-9.5-1(c) and IC 5-13-9.5-1(d);
(2) describe the department's evidence that the financial
institution is not in substantial compliance with the act;
(3) describe the consequences under IC 5-13-9.5-1(c) of a finding
that the financial institution is not in substantial compliance with
the act; and
(4) invite a reply that affirms or disputes the evidence of
noncompliance with the act.
If a financial institution disputes the preliminary determination that it
is not in substantial compliance with the act, but fails to convince the
director of the department of its substantial compliance with the act,
the financial institution may, within twenty (20) days of the date of the
notice, request a hearing on the determination. If a hearing is requested,
the department shall schedule the hearing not earlier than twenty (20)
days after the date of the request. If no hearing is requested, the
department's determination that the financial institution is not in
substantial compliance with the act is final.
(c) Except as otherwise provided in this section, any hearing
requested by a financial institution under subsection (b) and the
determination by the department are subject to IC 4-21.5-3. Judicial
review of the department's final determination may be obtained in
accordance with IC 4-21.5-5.
(d) If a financial institution does not contest the determination that
it is not in substantial compliance with the act, or the financial
institution is determined under subsection (b) to not be in substantial
compliance with the act, the department shall immediately notify the
chairperson of the board for depositories established under IC 5-13-12
of the determination.
(e) A financial institution that has been determined by the
department to not be in substantial compliance with the act may
petition the department for a hearing to demonstrate that the financial
institution has taken the necessary steps to attain substantial
compliance with the act, and to ensure future substantial compliance
with the act. The hearing and the determination by the department are
subject to IC 4-21.5-3. Judicial review of the department's final
determination may be obtained in accordance with IC 4-21.5-5. Upon
final determination by the department, or a final judgment in the case
of pending judicial review, that the financial institution is in substantial
compliance with the act, the department shall immediately notify the
chairperson of the board for depositories established under IC 5-13-12
of the determination or judgment.

Legislative History

As added by P.L.115-2010, SEC.21. Amended by P.L.7-2015, SEC.50.