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, including license fees and bonding requirements. The bill would cap the amount which can be charged for a “payday loan” transaction at 18 percent. Licensees would be required to display a warning on the written loan agreements that the loan is not intended to meet long-term needs and should be used only for short-term cash needs, and to post notices regarding fees and limitations. The bill contains other regulations, and would prohibit the lender from using any criminal process to collect the loan.
Referred to the Committee on Economic Development, Small Business, and Regulatory Reform
Reported without amendment
With the recommendation that the substitute (S-4) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one which revises details of the regulations that would be imposed on lenders, based on testimony from interested parties and deliberation by the Committee on Economic Development, Small Business and Regulatory Reform.
The substitute passed by voice vote
Substitute offered
by
To replace the previous version of the bill with one which would cap the amount which can be charged for a "deferred deposit loan” (or “payday loan”) at 10 percent, and establish a state database of all payday loan transactions so that the Office of Financial and Insurance Services (OFIS) could regulate these transactions on a real time basis.
The substitute failed 16 to 20 (details)
Amendment offered
by
To cap the amount which can be charged for a "deferred deposit loan” (or “payday loan”) at 10 percent.
The amendment failed 15 to 20 (details)
Amendment offered
by
To cap the amount which can be charged for a "deferred deposit loan” (or “payday loan”) at 13 percent.
The amendment failed 16 to 19 (details)
Amendment offered
by
To cap the amount which can be charged for a "deferred deposit loan” (or “payday loan”) at 16 percent of the amount paid out to the customer.
The amendment passed 35 to 0 (details)
Amendment offered
by
To correct a drafting error in the language of an amendment.
The amendment passed by voice vote
Amendment offered
by
To require all payday lenders to utilize a database of all loan transactions, which would be maintained by a thrid-party private entity. The database would also be accessible to the Office of Financial and Insurance Services (OFIS) for regulation purposes.
The amendment passed 21 to 15 (details)
Passed in the Senate 26 to 10 (details)
To require providers of a "deferred deposit loan" (or "payday 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 and regulated by the state, with license fees and bonding requirements. The bill would cap the amount which can be charged for a “payday loan” transaction at 16 percent of the amount paid to the customer. Licensees would be required to display a warning on the written loan agreements that the loan is not intended to meet long-term needs and should be used only for short-term cash needs, and to post notices regarding fees and limitations. The bill contains other regulations, and would also require all payday lenders to utilize a database of all loan transactions, which would be maintained by a third-party private entity. The database would be accessible to the Office of Financial and Insurance Services (OFIS) for regulation purposes, and to payday loan providers to check whether a loan applicant has an outstanding payday loan at another lender. The bill limits the amounts and duration of loans to a single person.
Referred to the Committee on Commerce
Reported without amendment
With the recommendation that the substitute (H-6) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one which changes the maximum loan fee and interest charge to 14 percent, and further revises details of the regulations that would be imposed on lenders.
The substitute passed by voice vote
Amendment offered
by
To strike out a provision which exempts lenders from regulatory enforcement actions related to payday loans which were made before this bill goes into effect on July 1, 2004, if those loans complied with the law in effect when they were transacted.
The amendment failed 48 to 58 (details)
Amendment offered
by
To cap the aggregate amount which can be charged for a “payday loan” transaction at 10 percent, rather than 14 percent.
The amendment failed 55 to 48 (details)
Amendment offered
by
To impose confidentiality requirements on the information about a loan applicant or customer provided by the provider of the proposed loan transaction database.
The amendment passed by voice vote
Amendment offered
by
To establish that the state insurance commissioner may not access information about a loan applicant's or customer's credit history which may be contained in the proposed loan transaction database.
The amendment passed by voice vote
Amendment offered
by
To clarify a provision exempting banks, savings and loan associations, savings banks, or credit unions from the bill.
The amendment passed by voice vote
Amendment offered
by
To cap the total aggregate amount of fees and interest which can be charged for a “payday loan” transaction at a level that, if calculated as an annual percentage rate (APR), would be equivalent to an APR of 100 percent. However, the bill prohibits extending the loans more that one month.
The amendment failed 38 to 55 (details)
Amendment offered
by
To cap the total aggregate amount of fees and interest which can be charged for a “payday loan” transaction at a level that, if calculated as an annual percentage rate (APR), would be equivalent to an APR of 200 percent. However, the bill prohibits extending the loans more that one month.
The amendment failed 37 to 60 (details)
Amendment offered
by
To require payday lenders to post a notice to customers that, if calculated as an annual percentage rate, the annual interest rate on a payday loan would be 364 percent. (However, the bill prohibits extending the loans more that one month, or "rolling them over").
The amendment passed 97 to 6 (details)
Passed in the House 57 to 45 (details)
To require providers of a "deferred deposit loan" (or "payday 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 and regulated by the state, with license fees and bonding requirements. The bill would cap the total aggregate amount of fees and interest which can be charged for a “payday loan” transaction at 14 percent of the amount paid out to the customer. Licensees would be required to display a warning on the written loan agreements that the loan is not intended to meet long-term needs and should be used only for short-term cash needs, and to post a notice to customers that, if calculated as an annual percentage rate, the annual interest on a payday loan would be 364 percent. (However, the bill prohibits extending the loans more that one month, or "rolling them over.") The bill contains other regulations, and would also require all payday lenders to utilize a database of all loan transactions, which would be maintained by a third-party private entity. The database would be accessible to the Office of Financial and Insurance Services (OFIS) for regulation purposes, and to payday loan providers to check whether a loan applicant has an outstanding payday loan at another lender. The bill limits the amounts and duration of loans to a single person.
Substitute offered
by
To replace the previous version of the bill with one which incorporates technical changes that do not affect the substance of the bill as previously described.
The substitute passed by voice vote
Amendment offered
by
To allow the Office of Financial and Insurance Services (OFIS) to decide whether to contract out the proposed database of all loan transactions to a third-party private entity, rather than requiring OFIS to contract it out.
The amendment passed by voice vote
Amendment offered
by
To cap the total aggregate amount of fees and interest which can be charged for a “payday loan” transaction at 13.25 percent of the face value of the loan, rather than 14 percent.
The amendment passed by voice vote
Passed in the House 64 to 44 (details)
A version of the bill which caps the total aggregate amount of fees and interest which can be charged for a “payday loan” transaction at 13.25 percent of the amount paid out to the customer, rather than 14 percent.
Passed in the Senate 25 to 12 (details)
