US Enacted Payday Lending Legislation Resources – 2008 Session in United States
US Enacted Payday Lending Legislation Resources – 2008 Session
| State: | Bill Summary: |
| Florida | S.B. 2158 Signed by governor 6/17/08, Chapter 177 Changes the name of money transmitters to money services businesses. Requires licensure rather than registration. Revises provisions relating to the powers of the Office of Financial Regulation and the Financial Services Commission (FSC). Revises provisions relating to examinations and investigations conducted by the office. Revises the list of prohibited acts by a money services business. |
| Nebraska | L.B. 851 Signed by governor 3/19/08 Amends provisions in the Delayed Deposit Services Licensing Act. |
| Ohio | H.B. 545 Signed by governor 6/2/08, Session Law 91 Repeals the Check-Cashing Lender Law, establishes the short-term lender law, authorizes savings and loan associations and credit unions to make short-term loans with special terms, creates a short-term installment loan linked deposit program, and expands the responsibilities of the Consumer Finance Education Board. |
| Utah | S.B. 83 Signed by governor 3/14/08, Chapter 96 Modifies the Check Cashing Registration Act to be the Check Cashing and Deferred Deposit Lending Registration Act. This bill: modifies definition provisions; addresses references to a check casher or deferred deposit lender; requires a deferred deposit lender to file operations statements to renew registration; prohibits a deferred deposit lender from extending certain deferred deposit loans; requires the commissioner to report annually regarding deferred deposit lenders. |
| Virginia | H.B. 12 Signed by governor 4/23/08, Chapter 849 S.B. 588 Signed by governor 4/23/08, Chapter 876 Requires the State Corporation Commission, by January 1, 2009, to certify and contract with one or more third parties to develop, implement, and maintain an Internet-accessible database, and requires payday lenders to query the database prior to making any loan to determine whether the loan is permissible. Licensees are required to pay a database inquiry fee to the database provider. A payday lender is prohibited from making a payday loan to a person if the loan would cause the borrower to have more than one payday loan outstanding at the same time and from making a payday loan on the same day that the person has paid a previous payday loan. Payday lenders are permitted to charge, on any payday loan, interest at an annual rate of 36 percent, a loan fee of not more than 20 percent of the loan proceeds, and a $5 verification fee. Payday lenders are prohibited from knowingly making loans to a member of the military service or to the spouse or dependent of such person. A borrower may enter into an extended payment plan, which allows the borrower to repay the loan in at least four equal installments over a period of not less than 60 days. A borrower may not enter into more than one extended payment plan in any 12-month period. A payday loan may not be made to a borrower in an extended payment plan or within 90 days after payment of an extended payment plan. The measure provides that the fifth payday loan made to a borrower within 180 days shall either be followed by a 45-day lockout period or be made as an extended term loan, under which the loan will be repaid in four equal installments over a 60-day period and be followed by a 90-day lockout period. Other provisions (i) prohibit a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (ii) require a lender, when collecting or attempting to collect a payday loan when the check given as security for such loan is dishonored, to comply with certain restrictions and prohibitions contained in the Fair Debt Collection Practices Act; (iii) provide that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower; and (iv) state that the provisions of the Payday Loan Act apply to Internet lenders. The measure, except the authorization to establish the database, will become effective January 1, 2009. |
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