Introduced
by
To require the provider of a "deferred deposit loan," in which for a fee the lender accepts a post-dated check, or agrees to hold a check for a period of days prior to deposit, to be licensed by the state, and to display a warning on written loan agreements that the loan is not intended to meet long-term need and should be used only for short-term cash needs. The bill would also prohibit the lender from using any criminal process to collect the loan.
Referred to the Committee on Insurance and Financial Services
Substitute offered
To replace the previous version of the bill with one requiring registration, but not licensure of “payday lenders,” and other changes. See House-passed version for details.
The substitute passed by voice vote
Amendment offered
by
To cap the bill's 18-percent maximum processing fee so that it could not exceed an equivalent annual interest rate of 100 percent. Note: The 18 percent fee is not interest, but a processing fee assessed against the amount of the loan. The maximum term of a loan allowed by the bill is one month.
The amendment failed 48 to 45 (details)
Amendment offered
by
To allow a borrower injured by a violation of the proposed provision by a lender to sue for double the service fee paid plus attorney fees, and extend the deadline for filing complaints regarding violations.
The amendment passed by voice vote
Passed in the House 64 to 33 (details)
To require registration, but not licensure of “payday lenders,” require that they furnish a $50,000 surety bond and pay fees to be determined by the Office of Financial and Insurance Services, and impose certain rules of conduct and disclosure requirements. The bill would limit the maximum loan amount to $1000 to be repaid within 30 days, and prohibit interest, but permit a maximum processing fee of 18 percent of the loan, plus a fee for cashing the customer’s pay check. “Rolling over” the debt before it had been paid in full would be prohibited.
Referred to the Committee on Banking and Financial Institutions
Substitute offered
by
To replace the previous version of the bill with one which would require licensure of pay day lenders, not just registration, as well as other more rigorous regulations.
Consideration postponed
Substitute offered
The substitute failed 12 to 16 (details)
Amendment offered
by
To cap the bill's 18-percent maximum processing fee so that it could not exceed an equivalent annual interest rate of 100 percent. Note: The 18 percent fee is not interest, but a processing fee assessed against the amount of the loan. The maximum term of a loan allowed by the bill is one month.
The amendment failed 18 to 12 (details)
Failed in the Senate 16 to 16 (details)
To require registration, but not licensure of “payday lenders,” require that they furnish a $50,000 surety bond and pay fees to be determined by the Office of Financial and Insurance Services, and impose certain rules of conduct and disclosure requirements. The bill would limit the maximum loan amount to $1000 to be repaid within 30 days, and prohibit interest, but permit a maximum processing fee of 18 percent of the loan, plus a fee for cashing the customer’s pay.
