Introduced
by
To impose licensure on providers of "deferred deposit loans" in which the lender accepts a post-dated check, or agrees to hold a check for a period of days prior to deposit. The bill would require that these lenders furnish a $50,000 surety bond, pay fees to be determined by the Office of Financial and Insurance Services, and abide by certain rules of conduct and disclosure requirements. It would limit the maximum loan amount to $500 to be repaid within 30 days, prohibit charging interest, and limit service fees to 10 percent of the total transaction amount. It would also require the Office of Financial and Insurance Services (OFIS) to establish a state database of all payday loan transactions, to be used to enforce the provision that a person only be allowed one such loan at a time.
Referred to the Committee on Banking and Financial Services
