US Introduced Payday Lending Legislation Resources – 2005 Session in United States
US Introduced Payday Lending Legislation Resources – 2005 Session
| State: | Bill Summary: |
| Arizona | H.B. 2319 Amends the requirements for deferred presentment companies. |
| A.B. 2537 Amends requirements for deferred presentment companies. |
|
| H.B. 2551 Passed House 3/24/05 Prohibits the licensee from directly or indirectly charging any fee for accepting a check for deferred presentment or deposit that is more than 15 percent of the face amount of the advanced check delivered to the maker by the licensee for an initial transaction or extension. Prohibits the garnishing of military earnings by a licensee. Prohibits collection activity against a member of the U.S. military or the member’s spouse during the member’s deployment to combat or combat support posting or during active duty service by National Guard or any military reserve unit members. Prohibits the licensee from contacting the commanding officer or anyone in the chain of command of a borrower in an effort to collect on a loan. Makes the licensee bound by the repayment agreement entered with respect to the borrower, including repayment agreements negotiated through military counselors or third-party credit counselors. Requires the licensee to devote some existing financial literacy effort toward addressing the educational needs of military borrowers. Requires the licensee to develop a brochure specifically for military borrowers including the following information: 1) the requirements of this legislation; 2) military policies relating to credit; 3) where military members may find financial assistance through established military programs, web sites and a military hotline; and 4) where military members may find information about local credit counseling alternatives. |
|
| S.B. 1189 Passed House, to Senate for concurrence 4/28/05 Prohibits the licensee from directly or indirectly charging any fee for accepting a check for deferred presentment or deposit that is more than 15 percent of the face amount of the advanced check delivered to the maker by the licensee for an initial transaction or extension. Prohibits the garnishing of military earnings by a licensee. Prohibits collection activity against a member of the U.S. military or the member’s spouse during the member’s deployment to combat or combat support posting or during National Guard active duty service or any military reserve unit. Prohibits the licensee from contacting the commanding officer or anyone in the chain of command of a borrower in an effort to collect on a loan. Makes the licensee bound by the repayment agreement entered with respect to the borrower, including repayment agreements negotiated through military counselors or third-party credit counselors. Requires the licensee to devote some existing financial literacy effort toward addressing the educational needs of military borrowers. Requires the licensee to develop a brochure specifically for military borrowers including the following information: 1) the requirements of this legislation; 2) military policies relating to credit; 3) where military members may find financial assistance through established military programs, web sites and a military hotline; and 4) where military members may find information about local credit counseling alternatives. |
|
| S.B. 1351 Amends requirements for deferred presentment companies and military customers. |
|
| Arkansas | S.B. 948 Creates the Payday Lending Act. |
| California | A.B. 207 Prohibits the fee for specified deferred deposit transactions from exceeding an effective annual rate greater than 10 percent. Requires a check from a customer for these deferred deposit transactions to be made payable to the actual name of the licensee. Prohibits a check that has been held by a licensee for more than 31 days from being presented to a bank for payment. |
| Connecticut | H.B. 5486 Protects consumers from the predatory terms and tactics employed in the making and collection of payday loans. Payday lenders typically charge consumers effective interest rates exceeding 400 percent per annum for the loan. |
| Hawaii | H.B. 1490 Carried over to 2006 session Enacts the Deferred Deposit Loan Act. Licenses and regulates persons who for a fee, accept checks: 1) dated on the date written and agree to hold it for a period of days prior to deposit; or 2) dated subsequent to date written and hold check for deposit until date of the check. |
| S.B. 1371 Carried over to 2006 session Allows a check casher to enter into multiple agreements for deferred deposits with a customer as long as the agreements do not exceed a total of $600. |
|
| S.B. 1413 Carried over to 2006 session Amends the deferred deposit check cashing provisions of section 480F. Increases the penalties for violation of the Act. Implements a licensure requirement for deferred deposit check cashing businesses. |
|
| S.C.R. 114 Passed Senate 4/12/05 Requests a sunrise analysis of the regulation of payday lenders and check cashers. |
|
| Illinois | H.B. 90 Creates the Consumer Protection and Payday Lenders Regulation Act. Contains only a short title provision. |
| H.B. 91 Creates the Payday Loan Consumer Protection Act. Contains only a short title provision. |
|
| H.B. 600 Creates the Short-term Loan Act. Provides for the regulation of entities that make payday loans and motor vehicle title loans having a term of fewer than 93 days and in an amount that does not exceed $1,000. Limits charges that may be imposed in connection with the loans. Requires lenders to obtain a license from the Director of the Division of Financial Institutions in the Department of Financial and Professional Regulation. Amends the Financial Institutions Code to require the Director of the Division of Financial Institutions to establish a complaint registry regarding licensees under the Short-term Loan Act. Amends the Consumer Fraud and Deceptive Business Practices Act to provide that three or more violations of the Short-term Loan Act constitute a violation of the Consumer Fraud and Deceptive Business Practices Act. |
|
| H.B. 2360 Creates the Payday and Title Loan Credit Reporting Act. Requires any lender of a payday loan or title loan to report the borrower’s repayment history and other relevant credit information to at least one consumer reporting agency in accordance with the federal Fair Credit Reporting Act. Authorizes the Division of Financial Institutions of the Department of Financial and Professional Regulation to adopt rules necessary and reasonable for the administration and enforcement of the Payday and Title Loan Credit Reporting Act. |
|
| H.B. 3087 Creates the Payday Loan Act. Contains only a short title provision. |
|
| H.B. 3088 Creates the Payday Loan Act. Contains only a short title provision. |
|
| S.B. 1823 Creates the Payday Loan Reform Act. Contains only a short title provision. |
|
| S.B. 2069 Creates the Short-term Loan Act to regulate lenders offering short-term loans (defined as deferred presentment loans and title-secured loans). Requires such a lender to notify the borrower that the borrower is entitled to contact the Division of Financial Institutions of the Department of Financial and Professional Regulation concerning debt management services and improprieties concerning the loan. Sets forth standards and requirements concerning the dispersal of loan proceeds, the written loan agreement, cancellation of future payment obligations, electronic funds transfer, and posting of charges. Prohibits a lender from engaging in other types of business if it does so for the purpose of violating the Act and prohibits the lender from engaging in any unfair or deceptive acts, practices, or advertising. Authorizes the borrower to recover undisclosed or excessive charges. Preempts all administrative rules of the Department of Financial and Professional Regulation concerning short-term loans. Establishes specific standards and requirements for both deferred presentment loans and title-secured loans. Amends the Consumer Installment Loan Act. Provides that the provisions of that Act do not apply to short-term loans. Amends the Criminal Code of 1961. In provisions concerning civil liability for deceptive practices, provides that a lender is not entitled to collect damages of treble on an amount owing from a short-term loan. |
|
| Iowa | H.F. 501 Relates to payday lending services which are also referred to as delayed deposit services. The bill, in new Code chapter 536B, provides a list of findings by the General Assembly related to the effects of payday loans on consumers in this state and provides a purpose of protecting consumers from predatory terms and tactics used in the lending and collection of payday loans. Prohibits a person from engaging in a business that makes, offers, or arranges, or acts as an agent in, the provision of payday lending services. Defines “payday lending services” as the acceptance of a check dated subsequent to the date the check was written or acceptance of a check dated on the date the check was written but holding the check for a period of time prior to deposit pursuant to anagreement. Persons who do not hold themselves out as being in the business of making loans are not subject to new Code chapter 536B. Provides for the enforcement of new Code chapter 536B by the superintendent of Banking with assistance from the attorney general. A person who violates any provision of Code chapter 536B is guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $250 but not more than $1,500. A person who commits a second or subsequent violation is guilty of a class “D” felony. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $750 but not more than $7,500. The superintendent of Banking shall adopt rules as necessary. The bill repeals Code chapter 533D relating to the licensing and regulation of delayed deposit services businesses. Persons licensed under current law to provide delayed deposit services may not initiate or renew a loan transaction on or after July 1, 2005, and must surrender licenses issued under Code chapter 533D by August 1, 2005. However, loan transactions initiated prior to July 1, 2005, are enforceable under the terms of the loan. The superintendent is required to provide written notification of the transition provisions to all persons licensed under Code chapter 533D within 30 days after enactment. |
| Kansas | S.B. 223 Removes the tiered fee structure assessed on cash advance “payday” loans. Instead, the bill allows lenders to collect a finance charge of 15 percent of the amount of the cash advance in addition to a $5 administrative fee. Establishes numerous limits on a lender’s ability to exercise collection actions if the borrower is a member of the military. |
| Kentucky | H.J.R. 137 Passed House 3/1/05 Creates the Kentucky Health and Economic Welfare Task Force to study the challenges faced by low-income Kentucky families in meeting their health and economic welfare needs and the effects of deferred deposit borrowing. |
| Maryland | H.B. 234 Establishes a Short-Term Small Consumer Loan Study Commission; provides for the membership and cochair of and staff for the Study Commission; requires the Study Commission to perform specified duties. |
| Michigan | H.B. 4474 Regulates the business of providing deferred presentment service transactions; requires the licensing of providers of deferred presentment service transactions; prescribes powers and duties of certain state agencies and officials; and prescribes penalties and provides remedies. |
| S.B. 164 Regulates deferred deposit loans for issued checks; provides for licensing and fees; prescribes the powers and duties of certain state agencies and officials; and provides for penalties. |
|
| Mississippi | S.B. 2577 Died in committee 2/1/05 Requires check casher licensees to file annual reports with the commissioner of Banking and Consumer Finance; requires the commissioner to compile an annual report containing certain data regarding all deferred deposit loans made in the preceding year. |
| S.B. 2807 Died in committee 2/1/05 Creates the Mississippi Deferred Deposit Loan Act; defines certain terms; provides for licensing and examination of persons engaging in the business of making deferred deposit loans; requires certain disclosures to consumers; requires certain acts; prohibits certain acts; requires reporting to the commissioner of Banking and Consumer Finance; provides penalties for violations of the act; repeals sections 75-67-501 through 75-67-539, which create the Mississippi Check Cashers Act. |
|
| Montana | H.B. 494 Missed deadline for general bill transmittal 3/1/05 Revises deferred deposit loan laws; revises the term length for the loans; provides that consumers be permitted to make incremental loan payments; provides for the disclosure of payment amounts on typical loans to consumers; authorizes an administrative fee on each loan and limits the interest on loans to 36 percent a year; clarifies a licensee’s liability for the acts of employees and other persons; provides that a violation of deferred deposit loan laws does not have to be intentional to be subject to civil penalties. |
| New Jersey | A.B. 972 S.B. 2270 Withdrawn from further consideration 6/9/05 Allows licensed check cashers to make small unsecured emergency advance or “payday” consumer loans of up to $500 and regulates those loan transactions. Limits the fee rate chargeable by the licensee to 10 percent of the total amount of the customer’s personal check, and specifies that the deferment must be for not less than seven days and not more than 30 days. Prohibits more than one outstanding payday loan to a borrower; provides for a cooling off period between payday loans to a customer; limits the total annual transaction fees chargeable per customer; prohibits payday loans to customers whose sole means of support is Social Security or government benefits payments; and provides for the right to rescind a payday loan by the close of the next business day. |
| S.B. 2654 Provides that, in addition to any other penalties provided by law, it is an unlawful practice under the Consumer Fraud Act, P.L.1960, c.39 (C.56:8-1 et seq.), for any person to engage in the business of making deferred deposit or “payday” loans. An “unlawful practice” under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the attorney general, the assessment of punitive damages and the awarding of treble damages and costs to the injured party. |
|
| New Mexico | H.B. 65 Passed House Provides for the regulation of payday loans. |
| S.B. 674 Provides for the regulation of payday loans. |
|
| New York | A.B. 850 Prohibits foreign banking corporations from issuing payday loans; defines payday loans as any transaction in which a short-term cash advance is made to a consumer in exchange for (i) a consumer’s personal check or share draft, in the amount of an advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or (ii) a consumer’s authorization to debit the consumer’s transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date. |
| A.B. 7288 Passed Assembly 5/25/05 Sets forth procedures for licensed lenders and payday loans by military borrowers; provides that a licensee shall not garnish any wages or salary paid for service in the armed forces when collecting any delinquent payday loan, defer all collection activity against a military borrower, honor the terms of any repayment agreement between a licensee and military borrower and make no loans to a military borrower if a commander has declared a specific location of the licensee’s business is off limits to military personnel. |
|
| North Carolina | S.B. 947 Prevents predatory payday loan practices and regulates state deferred deposit transactions, and provides additional consumer disclosures and protections. |
| Oklahoma | S.B. 578 Relates to the Deferred Deposit Lending Act; modifies requirements for advertising loans; establishes new disclosure requirements. |
| S.B. 892 Relates to the Deferred Deposit Lending Act; modifies minimum loan term; prohibits certain practices for specified borrowers; modifies the maximum finance charge. |
|
| Oregon | H.B. 2546 Requires a lender in the business of making title loans or payday loans to cash government checks payable to a recipient of public assistance. Prohibits a lender from charging a fee to cash government check payable to a recipient of public assistance. |
| H.B. 2761 Limits the maximum rate of interest on payday loans. Sets a minimum 31-day loan term for payday loans. Prohibits the renewal of a payday loan unless the consumer has paid at least 25 percent of the principal amount of the loan plus interest on the remaining balance. Prohibits fees other than interest and a fee for a dishonored check. |
|
| H.B. 2903 Limits the maximum rate of interest on payday loans. Requires a lender of payday loans to post the maximum rate of interest and fees charged for payday loan. |
|
| S.B. 545 Passed Senate 5/31/05 Limits the maximum rate of interest on payday loans. Sets a minimum 31-day loan term for payday loans. Prohibits the renewal of a payday loan unless a consumer has paid at least 25 percent of the principal amount of the loan plus interest on the remaining balance. Prohibits fees other than interest and a fee for a dishonored check. |
|
| S.B. 634 Prohibits a lender from making a payday loan without forming a belief that a consumer has the ability to repay the loan. Allows the director of the Department of Consumer and Business Services to adopt rules establishing contract terms, charges and fees for payday loans. |
|
| Pennsylvania | H.B. 1478 Passed House 6/22/05 Regulates payday loans in terms of practice, licensure and penalties; further provides for deceptive or fraudulentbusiness practices; and provides for unlicensed payday lending. |
| H.B. 2247 Amends the Consumer Discount Company Act of 1937. Provides for definitions and for licensure; and prohibitspayday loans. |
|
| S.B. 101 Amends the Consumer Discount Company Act of 1937. Provides for definitions and for licensure; and prohibits payday loans. |
|
| South Carolina | H.B. 3093 Relates to drawing and uttering any fraudulent check, draft, or other written order, so as to provide that the section does not apply to a check given to a deferred presentment service or a check cashing service; relates to evidence of fraudulent intent and prosecution for issuance of any fraudulent check, draft, or other written order, so as to provide that a commercial agent for collection of an obligation paid for with any fraudulent check, draft, or other written order does not have the same rights as the original payee unless the check, draft, or other written order has been endorsed over to the agent for collection for value and without reservation of rights; relates to regulation of deferred presentment services and to regulation of check cashing services, so as to provide that neither service may rely on the civil or criminal remedies in Chapter, 11, Title 34, for prosecuting or civilly enforcing payment of a fraudulent check. |
| H.B. 4158 Relates to application for licensure as a deferred presentment service, so as to provide that the Board of Financial Advisors notify the secretary of state of the name and address of each licensee; relates to qualifications for licensure as a deferred presentment service, so as to provide that the applicant may not place a licensed location within a three-mile radius of an existing licensed location or the location of a check-cashing service; relates to restrictions and requirements for presentment or deposit, so as to limit the aggregate total of advanced monies to one customer in any 31 day period to $300; and relates to books, accounts, and records of a deferred presentment service, so as to provide that they must be accessible by the Department of Consumer Affairs. |
|
| S.B. 21 Relates to definitions applicable to deferred presentment services, so as to define automated clearing house; relates to licensure procedures, so as to require that license renewal fees be paid by September first of each year, that late fees of $100 shall be charged, that written notice of a change in business location by the deferred presentment licensee shall be given to the board, that no change of location shall be made to an area outside of the municipality for which the licensee received a license, and that a licensee may not conduct business under any other name and only at a licensed location; relates to restrictions on the advancement of money, so as to prohibit a licensee from using the automated clearing house services on any account more than once and to require the transfer of only the total check amount; relates to restrictions and requirements for deferred presentment or deposit of checks, so as to provide that a licensee must not charge in excess of 15 percent of the amount advanced for a check, to provide that the same licensee shall not issue multiple advances or allow more than one outstanding check advance for any customer with a licensee, and to provide that if an account is renewed the customer will have no obligation to repay the debt; and relates to limitations on activities by persons required to be licensed, by changing “western union services” to “wiring services.” |
|
| Texas | H.B. 846 Adjusts the fees that can be charged for deferred presentment transactions. |
| H.B. 2126 S.B. 72 Relates to assistance of a deferred presentment transaction. |
|
| H.B. 3352 Relates to assisting in the creation of a deferred presentment transaction. |
|
| Utah | H.B. 295 Enacting clause struck 3/2/05 Relates to deferred deposit lending revisions. |
| S.B. 38 Enacting clause struck 3/2/05 Prohibits including an automatic garnishment clause in a contract for deferred deposit lending and requires the Department of Financial Institutions to make a filing with the Federal Trade Commission if necessary to implement the bill. |
|
| Virginia | H.B. 1864 Passed by indefinitely 2/1/05 Requires the establishment, by July 1, 2006, of a database that must be accessed by payday lenders prior to making a payday loan, in order to determine whether the person applying for the loan has an outstanding payday loan or has terminated a payday loan within the preceding 24 hours. The measure also requires payday lenders to check an internal database and to obtain a certification from the person, in order to confirm that the person does not have an outstanding payday loan and has not terminated a payday loan within the preceding 24 hours, and prohibits payday lenders from making loans to such persons. Finally, lenders are prohibited from engaging in the rollover of payday loans. |
| H.B. 1961 Stricken from docket 2/1/05 Requires the State Corporation Commission on or before July 1, 2006, to contract with a third party to establish and administer a database with real-time access through an Internet connection to ensure compliance with the Payday Loan Act. The measure also prohibits payday lenders from entering into a payday loan with a person who has an outstanding payday loan with that licensee or affiliate or with any other payday lender, or with a person whose previous payday loan has been terminated for less than 30 days, and from extending or continuing a payday loan where the lender continues to hold the borrower’s check or substitutes a new check. |
|
| S.B. 824 Withdrawn from further consideration 1/31/05 Excludes any loan made in conjunction with tax return preparation or electronic filing services by a commercial entity that is approved by the Internal Revenue Service as an e-file provider from the definition of a payday loan. |
|
| Washington | H.B. 2020 Requires the Department of Financial Institutions to implement a common database with real-time access through an Internet connection for licensees who make small loans. Requires licensees to submit specified data before entering into a small loan or payment plan. Requires licensees to check to see if a prospective borrower has outstanding small loans or payment plans. Prohibits licensees from entering into a small loan or payment if the prospective borrower has four outstanding small loans, four payment plans, or any combination of four outstanding small loans or payment plans with any one licensee or all licensees combined. Exempts any identifying information in the database from public disclosure. |
| S.B. 5481 Prosecutes the extortionate extension of credit by check cashers and sellers. |
|
| S.B. 5486 Provides that no licensee may engage in the business of making small loans to any person physically located in Washington state, including through use of the Internet, facsimile, telephone, kiosk, or other remote means without first obtaining a small loan endorsement to its license from the director in accordance with Chapter 31.45. |
|
| S.B. 5686 Passed House 2/23/05 Provides that a person may not engage in the business of brokers, servicing, or making small loans as an agent, broker, or servicer for a licensee or exempt entity without first obtaining a small loan endorsement to a check casher or check seller license under Chapter 31.45. An agent, broker, or servicer of a licensee or exempt entity engaged in the business of making small loans is subject to this chapter. |
|
| West Virginia | H.B. 2529 Creates the Deferred Deposit Loan Act. |
| H.B. 2665 Relates to the use of checks, bank account debit authorizations, or share drafts as security for loans or cash advances made for personal, family or household purposes. |
|
| H.B. 3150 Creates the Deferred Deposit Loan Act. |
|
| S.B. 560 Relates to the use of checks, bank account debit authorizations, or share drafts as security for loans or cash advances made for personal, family or household purposes. |
|
| S.B. 581 Creates the Deferred Deposit Loan Act. |
|
| Wisconsin | S.B. 465 Under current law, a person may not issue a check if he or she intends that it not be paid. A person who violates this prohibition is guilty of a misdemeanor or a felony, depending on the face value of the check or checks involved. This prohibition, however, does not apply to a postdated check or a check given for something previously received (except a payroll check). This bill eliminates the exception in the worthless check statute for postdated checks and checks given for past consideration. |
| Wyoming | H.B. 303 No report prior to Committee of the Whole cutoff 2/16/05 Relates to the Uniform Consumer Credit Code; provides for charges for dishonored post-dated checks. |
Leave a Reply