US Introduced Payday Lending Legislation Resources – 2008 Session in United States
US Introduced Payday Lending Legislation Resources – 2008 Session
| State: | Bill Summary: |
| Alabama | S.B. 552 Allows a consumer to rescind the payday loan transaction, provides further for rollover payday loans, allows consumers to request an extended payment plan, restricts payday loans to military personnel and their dependents, provides for a rebate of fees upon prepayment, and prohibits certain activities. |
| Arizona | H.B. 2148 Amends regulation of payday loans; adds provisions regarding military borrowers. |
| S.B. 1239 Extends the repeal date of the Deferred Presentment Licensing Program (Program) for two years and requires Program licensees to report additional information upon license renewal. Extends the Program repeal date to July 1, 2012. Requires licensees, upon licensure renewal, to report to DFI the following: a) the total number and dollar amount of transactions entered into and outstanding as of December 31 of the previous year. b) the average annual percentage rate, the average dollar amount and the average number of days of transactions entered into during the previous calendar year. c) the total dollar amount of fees collected from transactions during the previous calendar year. d) the total number and dollar amount of transactions written off during the previous calendar year. e) the total number of customers that entered into more than one transaction during the previous calendar year. Requires DFI aggregate the new reporting information into a report and submit the report by November 1 of each year to the governor, president of the Senate, speaker of the House of Representatives, the secretary of state and the director of the Arizona State Library, Archives and Public Records, as well as making the report available on DFI’s website. Requires the aggregated information obtained for the purposes of creating the report to remain confidential. Requires, on or before July 1, 2010, DFI conduct or contract to conduct a review that compares the information, rates and fees in the report to similar information in other states, and to provide a written copy of the review to the governor, president of the Senate, speaker of the House of Representatives, the secretary of state and the director of the Arizona State Library, Archives and Public Records. |
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| S.B. 1492 Eliminates the repeal date of the Deferred Presentment Licensing Program. |
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| California | A.B. 1534 Passed Assembly 6/5/07 Requires the commissioner of corporations, on or before March 1, 2008, to submit a report to the governor and the Legislature that, among other things, summarizes the results of a study on, and includes various information related to, payday loans. |
| A.B. 2511 Requires the commission to adopt rules that would prohibit a public utility from approving a licensee under the California Deferred Deposit Transaction Law to be an additional authorized payment location, as defined, and requires the commission to ensure compliance with this requirement. The bill requires a public utility that, prior to January 1, 2009, approves a licensee to be an authorized payment location to actively search for alternative locations for customers to pay billings from the utility, and to discontinue using a licensee as an authorized payment location when an adequate alternative has been obtained. The bill requires a public utility to require a licensee that it uses as an authorized payment location to provide a utility customer that makes a utility payment with information, prepared by the utility and approved by the commission, about payment options and assistance available through the utility. The bill prohibits a public utility from having a licensee as an authorized payment location on or after January 1, 2011, unless the commission finds that the utility has been unable to locate alternative payment locations, as specified. In which case, the commission shall grant the public utility a one-year extension in order to comply with these provisions or to demonstrate the need for another one-year extension. A public utility would be required to make reasonable attempts to work with community-based organizations to locate suitable alternatives to the licensee or licensees it has approved to be locations for customers to pay billings before seeking a waiver from the commission. |
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| A.B. 2845 States the intent of the Legislature to enact and implement changes to the California Deferred Deposit Transaction Law that include recommendations made by the Department of Corporations, as specified. |
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| S.B. 1551 Specifies the contents of the disclosure required for deferred deposit transaction advertisements and makes the disclosure applicable to licensees’ advertisements on the Internet. Requires the notice for a deferred deposit transaction to be separate from the written agreement for the transaction and requires the notice to be initialed by the customer and retained by the licensee in its books and records. Requires information on charges and fees for a deferred deposit transaction to be provided in a specified format indicating the corresponding annual percentage rate. Requires the agreement for a deferred deposit transaction to inform the customer that he or she has a right to request a written extension agreement or payment plan for the transaction. Requires extension of time and payment plans for repayment of a deferred deposit transaction to meet specified documentation requirements. Prohibits a licensee from referring, or threatening to refer, a customer to a prosecutor, or a prosecutor’s diversion program, for engaging in a deferred deposit transaction without funds to cover the personal check. Prohibits a licensee from debiting a customer’s banking account more than two additional times for the full amount of the loan after the due date if the customer does not pay off the loan on its due date and requires a licensee to obtain the authorization of the customer to debit his or her banking account for the second additional time. |
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| Colorado | H.B. 1126 Postponed indefinitely 4/15/08 Clarifies that a payment plan shall be offered to a consumer at the time a fourth deferred deposit loan is offered by a lender. Prohibits a lender from making a deferred deposit loan within five calendar days after the termination of a payment plan. |
| H.B. 1310 Postponed indefinitely 4/23/08 Changes the allowable finance charges for an initial deferred deposit loan in a 12-month period to $10 for each $100 loaned, up to a maximum charge of $30. Limits the allowable rate of interest to 36 percent per annum. Prohibits a lender from making a deferred deposit loan to a consumer who has an outstanding loan with the lender or any other lender. Requires a lender to verify that a consumer does not have an outstanding loan prior to initiating a new loan by accessing a common database. Requires the administrator of the “Uniform Consumer Credit Code” (administrator) to contract with an outside vendor to implement a common database with real-time access through an internet connection for lenders. Requires lenders to submit data prior to entering into a loan agreement. Requires lenders to pay a fee to cover the cost of the database. Authorizes the administrator to impose a civil penalty for failure to use the database as required. |
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| Florida | H.B. 955 Substituted 4/24/08 Expands scope of Money Transmitters Code to apply to all money services businesses rather than just to money transmitters; revises general provisions and provisions relating to payment instruments & monetary valuation transmissions, check cashing and foreign currency exchange, and deferred presentments; requires licensure rather than registration. |
| S.B. 568 Died in committee 5/2/08 Authorizes the circuit court to order a receivership and restitution of money as remedies for persons injured due to a violation of the Money Transmitters’ Code. Requires that any relief, including injunctive relief, be granted without bond. Provides that a violation of any law enforced by the Office of Financial Regulation is also a violation of the code. Provides that any deferred presentment transaction entered into by a drawer with a nonexempt person who is not registered under the code is void and requires forfeiture of all moneys provided and fees charged to the drawer by the person, or any agent, officer, or representative of the person. Authorizes a drawer to recover in a civil action or arbitration three times the amount of the moneys and fees collected by such a nonexempt and unregistered person. Provides that such a transaction engaged in by a prior registrant under the code whose registration has inadvertently lapsed within the year preceding the transaction is not void unless the prior registrant continued to engage in such transactions knowing that the registration had lapsed. Provides that any person who willfully attempts to collect on any deferred presentment transaction, that he or she knows to be void under such provisions, commits a third degree felony. |
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| S.B. 2638 Died in committee 5/2/08 Provides for credit enhancement loans; provides for the licensure of lenders by the Department of Financial Services (DFS). Requires that the licensee maintain a minimum net worth. Provides for enforcement of loan agreements. Provides for reports to credit bureaus. Requires that a licensee maintain records for a specified period and allow the department to examine its records. Authorizes the DFS to issue subpoenas and compel testimony. |
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| Georgia | S.B. 489 Enacts the “Credit Enhancement Loan Act of 2008”; provides for findings of the General Assembly; provides for a short title; provides for purposes; provides for definitions; provides for licensing of lenders by the Department of Banking and Finance; provides for penalties for violations; provides for fees payable to the department; provides for requirements necessary for issuance of a license by the department; provides for the form and contents of an application; provides for revocation or suspension of a license; provides for amounts of loans and interest rates; prohibits multiple loans in certain situations; provides for enforcement of loan agreements; provides for disclosure forms for the customer; provides for reports to credit bureaus; requires maintenance of financial records by licensees; provides for reports to be filed with the commissioner; provides for desist orders; provides for appeals from actions of the department; provides for nonenforcement of credit enhancement loans. |
| Hawaii | H.B. 483 In conference committee 5/1/07 Requires the Department of Commerce and Consumer Affairs to regulate the check cashing industry through licensing requirements; provides further requirements for deferred deposit transactions. |
| Idaho | H.B. 435 Amends existing law relating to payday loans to provide that payday lenders shall give notice that the borrower should consider consulting with a licensed credit or debt counselor if the borrower is having difficulty meeting financial obligations; and to provide that before disbursing funds pursuant to a payday loan, a licensee shall give the prospective borrower a written list setting forth the names, addresses and phone numbers of all credit and debt counselors. |
| Illinois | H.B. 4210 Amends the Payday Loan Reform Act. Provides that no payday lender shall offer or make a consumer installment loan exceeding a double digit (99.99%) annual percentage rate from or upon the same location or premises as it offers or makes a payday loan. Provides that “payday loan” or “loan” means a loan with a finance charge exceeding a double digit (99.99%) annual percentage rate (instead of 36 percent for a term that does not exceed 120 days). |
| H.B. 4993 Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title. |
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| H.B. 5024 Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title. |
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| S.B. 1271 Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title. |
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| S.B. 1993 Passed Senate 4/17/08 Amends the Payday Loan Reform Act. In the elements of the definition of “payday loan”, deletes the element that it have a term that does not exceed 120 days. Deletes a provision that a specified charge is considered fully earned as of the date on which the loan is made. Provides that when a consumer repays a payday loan in full before its due date, the lender shall rebate the unearned finance charges to the consumer on a straight-line amortization basis as of the date of repayment. Prohibits a licensee or a person making payday loans from evading the requirements and prohibitions of the Act by use of a device or subterfuge including, but not limited to, disguising a payday loan as a different type of transaction or characterizing a required fee as a purchase of a good or service in connection with a payday loan, and authorizes the Department of Financial and Professional Regulation to develop rules to determine if a person or entity seeks to evade the applicability of the Act by any device, subterfuge, or pretense. |
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| S.B. 1994 Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title. |
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| S.B. 2406 Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title. |
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| S.B. 2535 Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title. |
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| S.B. 2866 Amends the Payday Loan Reform Act. In the definition of “payday loan”, deletes an element that the loan have a finance charge exceeding an annual percentage rate of 36%. Provides that a lender may not charge more than $10 (instead of $15.50) per $100 loaned on any payday loan over the term of the loan. In provisions regarding loan terms, provides that, in addition to any administrative fee, a lender may not charge interest on the amount of cash delivered to the consumer in an equivalent greater than 36% per annum and adds other requirements regarding rates. Requires a licensee to have unencumbered assets of at least $50,000 per location. Prohibits placement of a new location within 2,500 feet of any business licensed under the Act. Prohibits a device or agreement that would have the effect of charging or collecting more interest than allowed by the Act, charging interest other than as authorized by the Act, or including any jury trial waiver or mandatory arbitration clause in loan documents. |
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| Kansas | H.B. 2244 Prevents a lender from making a payday loan to a potential borrower if the borrower already has two loans outstanding. The bill prohibits a borrower from receiving a loan if five consecutive loans have been made, until seven days after the fifth consecutive loan is paid in full. The bill defines a consecutive loan as a new loan agreement that a lender enters into with the same borrower within seven days after a previous loan made with that borrower is paid in full. The bill also allows the Office of the State Bank Commissioner, or a third party provider selected by the Office of the State Bank Commissioner, to develop, implement, and maintain a statewide common database to verify compliance with the law. Lenders would be required to input information in the database on all loans that they make, and check with the database to determine if a borrower is eligible to receive a payday loan. Lenders would be charged a verification fee of up to $1 per transaction to access the database. |
| H.B. 2717 Prevents a lender from making a payday loan to a potential borrower if the borrower already has two loans outstanding. The bill prohibits a borrower from receiving a loan if five consecutive loans have been made, until seven days after the fifth consecutive loan is paid in full. The bill defines a consecutive loan as a new loan agreement that a lender enters into with the same borrower within seven days after a previous loan made with that borrower is paid in full. |
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| S.B. 217 Prevents a lender from making a payday loan to a potential borrower if the borrower already has two loans outstanding. The bill prohibits a borrower from receiving a loan if five consecutive loans have been made, until seven days after the fifth consecutive loan is paid in full. The bill defines a consecutive loan as a new loan agreement that a lender enters into with the same borrower within seven days after a previous loan made with that borrower is paid in full. The bill also allows the Office of the State Bank Commissioner, or a third party provider selected by the Office of the State Bank Commissioner, to develop, implement, and maintain a statewide common database to verify compliance with the law. Lenders would be required to input information in the database on all loans that they make, and check with the database to determine if a borrower is eligible to receive a payday loan. Lenders would be charged a verification fee of up to $1 per transaction to access the database. |
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| Kentucky | H.B. 500 Passed House 3/20/08 Amends KRS 286.9-010 to define terms relating to deferred deposit transactions and the business of check cashing; amends KRS 286.9-070 to clarify that deferred deposit and check cashing licenses expire yearly; requires that a licensee acquire written approval from the office of insurance prior to implementing a change of control in the licensee’s business and to provide for the process of abandonment of a licensure application; amends KRS 286.9-080 to provide that licenses may be reinstated within 31 days of expiration; amends KRS 286.9-100 to reduce the maximum service fees from $15 per $100 in proceeds to $13 per $100 in proceeds; alters payday lending transactions from the discount method to the add-on method; reduces the time to report illegal activity from five days to two days; creates language anticipating the establishment of a statewide database; creates a new subsection to prohibit any licensee from entering into a new deferred deposit transaction with a customer within 24 hours of any licensee closing a deferred deposit transaction with that customer and provide verification procedures; provides that it shall be illegal to charge any fee in connection with a deferred deposit transaction that is not provided for in subtitle 9 of KRS Chapter 286; restricts the amount a customer may borrow from a payday lender to no more than 30 percent of the customer’s gross monthly income; provides for rescission of the transaction before close of business on the day following execution of the transaction without any charge to the customer; amends KRS 286.9-110 to add enforcement methods; provides additional criteria that may result in enforcement; provide that a person who is the subject of a license denial shall not be eligible to reapply for licensure for one year, and a person with a revoked license may not reapply for three years and two revocations shall permanently ban a former licensee; provides that any person whose license has been denied, suspended, revoked, or surrendered in lieu of revocation or suspension shall not participate in any business activity under subtitle 9 of KRS Chapter 286 and shall not engage in any business activity on the premises of a licensee under subtitle 9; amends KRS 286.9-040 creates a new subsection to provide that surrender or revocation of a license shall not affect any civil or criminal liability for acts committed during licensure, nor affect the obligation of any preexisting contract, nor does surrender or expiration affect a suspension or revocation proceeding; authorizes the office to pursue debts and fines through the Department of Revenue with jurisdiction in Franklin Circuit Court, or any court of competent jurisdiction, for injunctive relief; amends KRS 286.9-040 to allow the use of surety bonds as a deposit, increase the tiered deposit requirements up to a maximum of $500,000 rather than $200,000, requires that all deposits shall provide for suit, shall be made payable to the executive director and be available for recovery of expenses, fines, and fees levied by the executive director, and establishes a three-year statute of limitations for actions against bonds or other deposits; creates a new section of subtitle 9 of KRS Chapter 286 to provide that all deferred deposit transactions made with an unlicensed person are void, or may be deemed void by the executive director if he determines there is a violation of this subtitle; creates a new section of subtitle 9 of KRS Chapter 286 to provide for implementation of a common database with real-time access through an Internet connection by July 1, 2009 for the purpose of licensee submission of transaction and customer information and to permit the executive director to determine whether licensees and customers are complying with this subtitle; creates a new section to establish civil penalties of $1000 to $5000 per violation per day, to be assessed by the executive director plus the state’s expenses and costs for litigation; creates new sections of subtitle 9 of KRS Chapter 286 to allow for the use of consent orders and provides such orders are a matter of public record and to provide that the executive director may stay, suspend, or postpone the effective date of an order pending the administrative proceeding upon written request by the affected person, licensee, or agent; requires compliance with applicable federal and state laws; require all licensees to file all reports from the United States Treasury Financial Crimes Enforcement Network with the executive director; requires licensees to maintain an agent for service of process; require licensees to retain records for a minimum of three years unless federal law requires a longer period; allows records to be maintained electronically; requires appointment of a custodian to store records if a licensee’s business ceases to operate; prohibits the renewal or extension of a deferred presentment service agreement for a fee; authorize repayment plans for a customer who is seeking the sixth loan in a 12-month period and require the licensee to inform the customer of the repayment plan option; provides that a licensee shall be liable for damages if a check or debit is submitted for payment prior to the expiration of the term of the repayment plan; authorizes the executive director to issue emergency orders suspending, limiting, or restricting the license of any person; changes the annual report due date from September 1 to March 1 and adds additional reporting requirements; provides the process for administrative action by the office; provides that the affairs of a licensee are subject to examination at the direction of the executive director at any time, without notice to the licensee; exempt the United States and any state government from the provisions of this subtitle; makes technical corrections; requires disclosures be made in writing and in advance of a transaction; provides that any person operating without a license shall be guilty of a Class D felony and that intentional violation of the subtitle shall be a Class A misdemeanor. |
| Louisiana | H.B. 149 Provides for changes to interest rates on deferred presentments and small loans. |
| H.B. 572 Changes the delinquent annual percentage rate on deferred presentments and small loans. |
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| H.B. 929 Establishes a database within the Office of Financial Institutions to allow licensees to track consumer activity prior to processing deferred presentment transactions and small loans. |
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| H.B. 944 Excepts certain acts of licensees who offer deferred transactions or small loans from application of the Consumer Credit Law by the commissioner of the office of financial institutions for purposes of administering and regulating the activities of such licensees. |
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| S.B. 453 Excepts certain acts of licensees who offer deferred transactions or small loans from application of the Consumer Credit Law by the commissioner of the office of financial institutions for purposes of administering and regulating the activities of such licensees. |
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| Michigan | S.B. 454 Provides for a cap on payday loan charges allowed for military personnel and their families. |
| Minnesota | H.B. 3511 S.B. 2838 Regulates consumer small loan lender charges. |
| H.B. 3533 S.F. 3197 Regulates consumer small loans. |
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| S.F. 3740 Makes changes in regulation of consumer small loans; provides consumer protections. |
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| Mississippi | H.B. 718 Died in committee 2/19/08 Creates the “Credit Enhancement Loan Act of 2008”; provides for findings of the legislature; defines certain terms as used in the act; requires licensing of lenders by the department of banking and consumer finance; prescribes penalties for violations; to provide for fees payable to the department; establishes requirements necessary for issuance of a license by the department; provides for the form and contents of an application; provides for revocation or suspension of a license; provides for amounts of loans and interest rates; prohibit multiple loans in certain situations; provides for enforcement of loan agreements; provides for disclosure forms for the customer; provides for reports to credit bureaus; requires maintenance of financial records by licensees; provides for reports to be filed with the commissioner of banking and consumer finance; provides for desist orders; provides for appeals from actions of the department; provides for nonenforcement of credit enhancement loans. |
| H.B. 1216 Died in committee 2/19/08 Creates new code §75-67-541, Mississippi Code of 1972, to require 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. |
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| H.B. 1239 Died in committee 2/19/08 Creates new code §75-67-541, Mississippi Code of 1972, to require 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. |
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| H.B. 1291 Died in committee 2/19/08 Amends §75-67-515, Mississippi code of 1972, to provide that the commissioner of banking shall impose a civil penalty against a check casher licensee for initiating criminal proceedings for an overdrawn check; requires licensees to attend annual continuing education training; amends §75-67-519, Mississippi Code of 1972, to provide that the commissioner shall impose a civil penalty against a licensee for renewing or extending a delayed deposit check or accepting repayment of a delayed deposit check with the proceeds of another check cashed by the same licensee; amends §75-67-527, Mississippi Code of 1972, to increase the amount of a civil penalty that the commissioner may impose against a licensee for violations of the check cashers act. |
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| S.B. 2798 Died in committee 2/19/08 Declares legislative intent to prohibit activities commonly referred to as payday lending, deferred presentment services, advance cash services and other similar activities; provides that it shall be unlawful to engage in the business of making certain small loans; provides criminal penalties therefor; provides for collection of civil penalties in actions by the state or by private parties on behalf of the state; declares the site or location of a place of business where payday lending takes place in the state of Mississippi as a public nuisance; repeals §§75-67-401 through 75-67-449, Mississippi Code of 1972, which create the Mississippi title pledge act; repeals §§75-67-501 through 75-67-539, Mississippi Code of 1972, which create the Mississippi check cashers act. |
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| S.B. 2801 Died in committee 2/19/08 Creates new code §75-67-541, Mississippi Code of 1972, to require 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. |
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| S.B. 2934 Died in committee 2/19/08 Creates the “Credit Enhancement Loan Act of 2008”; provides for findings of the legislature; defines certain terms as used in the act; requires licensing of lenders by the department of banking and consumer finance; prescribes penalties for violations; to provide for fees payable to the department; establishes requirements necessary for issuance of a license by the department; provides for the form and contents of an application; provides for revocation or suspension of a license; provides for amounts of loans and interest rates; prohibit multiple loans in certain situations; provides for enforcement of loan agreements; provides for disclosure forms for the customer; provides for reports to credit bureaus; requires maintenance of financial records by licensees; provides for reports to be filed with the commissioner of banking and consumer finance; provides for desist orders; provides for appeals from actions of the department; provides for nonenforcement of credit enhancement loans. |
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| Missouri | H.B. 1301 Changes the laws regarding unsecured loans of $500 or less, sometimes referred to as payday loans. In its main provisions, the bill: (1) Limits the interest and other fees that may be charged on the loans to $15 per $100 of principal for the first 30 days of the loan and not more than three percent per month thereafter, which is an annual percentage rate of approximately 36 percent; (2) Prohibits repeated renewals of loans to circumvent interest rate restrictions; (3) Grants jurisdiction to the Attorney General to issue cease and desist orders against violators; (4) Allows the attorney general to sue requesting a circuit court to issue an injunction, restraining order, or declaratory judgment; to impose a civil penalty; or to impose an order of rescission, restitution, or disgorgement against a person or entity who has violated any laws relating to consumer loans; and (5) Specifies that the limitations apply to all lenders, whether or not they are properly licensed pursuant to Chapter 408, RSMo. |
| H.B. 1462 Changes the laws regarding unsecured loans of $500 or less, sometimes referred to as payday loans. In its main provisions, the bill: (1) Limits the interest and other fees that may be charged on the loans to $15 per $100 of principal for the first 30 days of the loan and not more than 3% per month thereafter, which is an annual percentage rate of approximately 36 percent; (2) Prohibits repeated renewals of loans to circumvent interest rate restrictions; (3) Grants jurisdiction to the attorney general to issue cease and desist orders against violators; (4) Allows the attorney general to sue requesting a circuit court to issue an injunction, restraining order, or declaratory judgment; to impose a civil penalty; or to impose an order of rescission, restitution, or disgorgement against a person or entity who has violated any laws relating to consumer loans; and (5) Specifies that the limitations apply to all lenders, whether or not they are properly licensed pursuant to Chapter 408, RSMo. |
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| H.B. 1749 Requires lenders of unsecured loans of less than $500, commonly referred to as payday loans, to notify borrowers of the balance owed on the principal, interest, and other fees at least every three months. |
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| H.B. 1843 Requires lenders of unsecured loans of $500 or less, commonly known as payday loans, to conspicuously display in the lobby of their business establishment a brochure, provided by the Family Support Division of the Department of Social Services, regarding information on and the eligibility requirements for the Missouri Food Stamp Program. |
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| S.B. 744 Amends the law relating to unsecured loans of $500 or less. Under current law, lenders may renew such loans upon the borrower’s request. This act prohibits lenders from renewing such loans. Under current law, the director of the Division of Finance may issue a cease and desist order when lenders fail to make a good faith effort to comply with laws relating to consumer loans. This act allows the attorney general to do the same. The attorney general may also file an action in any circuit court to enjoin the practice; impose a civil penalty; or to obtain an order of rescission, restitution, or disgorgement. Under the act, a lender may only charge interest and fees up to the amount of $15 per $100 of principal for the first 30 days of the loan, and not more than three percent per month thereafter, which is an annual percentage rate of approximately 36 percent. Under current law, the Division of Finance must report to the General Assembly, the number of licenses issued under this section every other year. This act requires the division to report every year. The provisions in this section apply to all lenders, whether or not they are properly licensed. |
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| Nebraska | L.B. 852 Amends licensing provisions for delayed deposit services. |
| L.B. 868 Prohibits delayed deposit services. |
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| New Hampshire | H.B. 267 Enrolled 5/21/08 Establishes a limit on the percent of interest for certain small loans. This bill also limits eligibility for payday and title loans. |
| H.B. 620 Laid on table 1/16/08 Repeals the statutory provisions regarding small loans, title loans, and payday loans and establishes a general statutory usury rate. |
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| H.B. 759 Enrolled 5/21/08 Establishes additional remedies for violations of banking laws. Modifies reporting and record-keeping requirements for banking licenses. Makes certain technical changes to the laws regarding banking. Amends definition of payday lending. |
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| S.B. 472 Enrolled 6/20/08 Redefines payday loan, small loan, and title loan. This bill establishes a commission to study access to consumer credit for people in New Hampshire. |
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| New York | A.B. 722 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. 3514 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. |
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| Ohio | H.B. 333 Prohibits a check-cashing business from making a loan to a borrower who has an outstanding loan with any check-cashing licensee, creates a statewide database of loans by check-cashing licensees, modifies the terms for making a loan under the check-cashing loan act, creates a small loan linked deposit program, expands the responsibilities of the consumer finance education board to promote small loan counseling and education for borrowers, and eliminates a certain credit union lending option. |
| H.B. 337 Modifies terms and permissible charges under the Check-Cashing Lender Law, establishes the Financial Literacy Education Fund, authorizes the director of Commerce to administer the fund and establish adult financial literacy education programs, and creates the Small Emergency Loan Task Force. |
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| H.B. 358 Modifies the provisions for making a loan under the Check-Cashing Business Loan law. |
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| S.B. 72 Prohibits check-cashing businesses from making loans to a customer who has an outstanding loan with another licensee, creates a statewide database of open loans at check-cashing licensees, and changes the permitted interest rate, fees, and duration of such loans. |
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| S.B. 207 Modifies the provisions for making a loan under the check cashing loan act. |
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| S.B. 248 Passed Senate 5/29/08 Exempts certain armed forces discharges from inspection or copying as a public record, prohibits failing to report the unauthorized use of certain electronic property to law enforcement authorities, creates restrictions for check-cashing businesses when making a loan to certain members of the military, excuses certain military persons from jury duty, establishes a criminal penalty for unlawfully using a deceased military person’s persona, establishes tuition benefits for certain military persons, and creates the Ohio Military Medal of Distinction and the National Guard Youth Challenge Program Study Committee. |
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| S.B. 319 Prohibits a check-cashing business from making a loan to a borrower who has an outstanding loan with any check-cashing licensee, to create a statewide database of loans by check-cashing licensees, to modify the terms for making a loan under the check-cashing loan act, to create a small loan linked deposit program, to expand the responsibilities of the consumer finance education board to promote small loan counseling and education for borrowers, and to eliminate a certain credit union lending option. |
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| Oklahoma | H.B. 2516 Relates to the Deferred Deposit Lending Act; modifies lenders restrictions; provides for exception for certain military personnel; modifies finance charges; prohibits certain finance charges for military personnel; provides time limit for certain loans; modifies time between consecutive deferred deposit loans; modifies advertising materials; provides disclosure statements and disclosure requirements. |
| H.B. 3176 Relates to rescission time limits for deferred deposit lending; clarifies language. |
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| Rhode Island | H.B. 8405 Gives the director of the department of administration authority to post required notices in languages he or she deems appropriate. The act also imposes certain consumer protection measures upon “check cashers” by mandating a grace period subsequent to the designated repayment date, and allowing customers to rescind deferred deposit transactions. |
| S.B. 2601 Passed Senate 5/13/08 Requires licensed “check cashers” to provide notice to customers of alternative lending options. It would also change the fees licensed “check cashers” could charge. |
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| South Carolina | H.B. 4058 To House for concurrence 5/23/08 Requires the Consumer Finance Division of the Board of Financial Institutions to implement a common database with real-time access through an Internet connection for deferred presentment providers, as provided. Requires the Board of Financial Institutions to make an annual report to the General Assembly. Creates restrictions on the amount a customer may borrow. Authorizes a customer to pay any outstanding deferred presentment transaction by means of an extended payment plan. |
| H.B. 5022 Relates to restrictions and requirements for deferred presentment or deposit of check, so as to provide a check accepted for deferred presentment or deposit pursuant to this chapter may not be repaid by means of electronic transfer of funds from an account of the customer. |
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| S.B. 398 Passed Senate 3/20/08 Creates the crime of engaging in the business of deferred presentment in this state, provides that a violation is a felony, and provides for a mandatory minimum penalty; and repeals chapter 39 of title 34 relating to the South Carolina Deferred Presentment Services Act. |
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| S.B. 954 Provides that it is unlawful for a person to provide payday loans, provides that a violation of this article is punishable by a fine of no less than $1,000 and no more than $5,000 and imprisonment for not more than three years, provides that the court may require a person convicted of a violation of this article to pay restitution, provides that the state may recover civil penalties from a person that is convicted of a violation of this article, provides that the proceeds of all loans made by a person convicted of a violation of this article are taxable to the violator as income, provides that the location where payday loans are provided is a public nuisance, and provides that a person convicted of a violation of this article is prohibited from having or obtaining a certificate of authority from the secretary of state or a business license for any business. |
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| South Dakota | H.B. 1297 Provides a maximum finance charge for short-term consumer loans and title loans. |
| Tennessee | H.B. 4038 S.B. 4070 Requires the commissioner of financial institutions to annually, instead of biennially, submit report to governor and General Assembly; requires licensee who provides deferred presentment services to notify department seven days instead of five days before change in location or name. |
| Utah | S.B. 216 Enacting clause struck 3/5/08 Requires a check casher that extends a deferred deposit loan to file an operations statement to renew a registration; requires reporting by the commissioner. |
| Virginia | H.B. 176 Incorporated into H.B. 12 2/5/08 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 an applicant is eligible for the loan. Fifty cents may be charged to defray the costs of using the database. The proceeds from the fees shall be used only for the payment of the expenses of the administration of the Payday Loan Act and of the performance of other functions of the Bureau of Financial Institutions. |
| H.B. 189 Authorizes each locality to establish (i) a maximum annual interest rate for payday loans made within its jurisdiction and (ii) the maximum number of payday loans that payday lenders operating within its jurisdiction may, in a calendar year, make to a borrower residing in the locality. References in the Payday Loan Act to the fee that may be charged on such loans are revised to refer to the interest that may be charged. |
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| H.B. 249 Incorporated in H.B. 12 2/5/08 Establishes a maximum annual interest rate for payday loans of 36 percent. In addition, the measure requires each prospective borrower to acknowledge in writing that he has received and read a copy of the most recent version of the State Corporation Commission’s Consumer Guide to Payday Lending before entering into a payday loan. |
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| H.B. 730 Incorporated into H.B. 12 2/5/08 Repeals the Payday Loan Act effective July 1, 2010. |
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| H.B. 1103 Requires the State Corporation Commission, by January 1, 2009, to contract with a third party 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 an applicant is ineligible for the loan. The measure also (i) caps the maximum amount of a payday loan at the lesser of 25 percent of the borrower’s gross monthly income or $1,000, or $500 if it is a second payday loan; (ii) requires the lender to keep records of the pay stubs used in determining gross monthly income; (iii) limits a borrower to having no more than two payday loans outstanding at any time; (iv) allows borrowers to enter into a 60-day, interest-free payment plan on a second payday loan; (v) increases the minimum term of a payday loan from seven to 14 days; (vi) requires a one day waiting period between the repayment of a loan and making a new loan; (vii) clarifies and expands the disclosure requirements for borrower’s right to cancel or rescind a payday loan by 5:00 pm of the business day following the date a loan is made; (viii) assesses licensees a fee of $1 per payday loan to defray the costs of the database; (ix) requires lender to distribute the State Corporation Commission’s Consumer Guide to Payday Lending to loan applicants; (x) requires lenders to notify a borrower by telephone call prior to depositing a check given as security for a payday loan; (xi) prohibits lenders from knowingly making loans to a member of the military service or to the spouse of such person; (xii) prohibits a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (xiii) requires 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; (xiv) provides that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower; (xv) states that the provisions of the Payday Loan Act apply to Internet lenders; and (xvi) allows licensees to secure payday loans with the borrower’s electronic debit authorization or wire transfer authorizations. |
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| H.B. 1351 Requires the State Corporation Commission, by July 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 an applicant is eligible for the loan. A payday lender is prohibited from making a payday loan if the loan would cause the borrower to have more than two payday loans outstanding at the same time. 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 to repay any payday loan, provided that it may do so with any lender not more frequently than once every 12 months. An extended payment plan allows the borrower to repay the loan in at least two equal installments over 60 days. A payday loan may not be made to a borrower in an extended payment plan. 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, 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; (iv) state that the provisions of the Payday Loan Act apply to Internet lenders; (v) allow licensees to secure payday loans with the borrower’s electronic debit authorization; (vi) prohibit a lender from filing or initiating a legal proceeding against a borrower until 60 days after the date of default on a payday loan; and (vii) prohibit a lender from making a payday loan to a borrower on the same day that the borrower pays or otherwise satisfies a previous payday loan. |
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| H.B. 1377 Postponed indefinitely 2/5/08 Establishes a maximum annual interest rate for payday loans of 36 percent. |
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| H.B. 1404 Incorporated into H.B. 12 2/5/08 Limits the interest that may be charged on a payday loan to a maximum rate of 36 percent annually. |
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| H.B. 1505 Postponed indefinitely 3/3/08 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 an applicant is eligible for the loan. A fee of not more than $1 may be charged to defray the costs of using the database. The database provider will own the information contained in the database and be responsible for protecting the confidentiality and security of information in the database. The proceeds from the fees shall be used only for the payment of the expenses of the administration of the Payday Loan Act and of the performance of other functions of the Bureau of Financial Institutions. |
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| H.J.R. 168 Directs the Joint Legislative Audit and Review Commission (JLARC) to study the payday lending industry in the Commonwealth. In conducting its study, JLARC shall (i) examine the effectiveness of payday lending in meeting the credit needs of residents of the Commonwealth, (ii) if legislation is enacted in the 2008 Session of the General Assembly that provides for the establishment of a database for monitoring payday lending practices, examine the effects of the database on payday lending in the Commonwealth, and (iii) consider such other issues as it deems appropriate. |
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| S.B. 24 Establishes a maximum annual interest rate for payday loans of 36 percent. References in the Payday Loan Act to the fee that may be charged on such loans are revised to refer to the interest that may be charged. |
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| S.B. 25 Repeals the Payday Loan Act effective July 1, 2008. |
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| S.B. 156 Repeals the Payday Loan Act effective July 1, 2010. |
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| S.B. 238 Establishes a maximum interest rate for payday loans of 36 percent annually. |
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| S.B. 278 Repeals the Payday Loan Act effective January 1, 2009. |
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| S.B. 279 Establishes a maximum annual interest rate for payday loans of 36 percent. |
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| S.B. 670 Establishes a maximum annual interest rate for payday loans of 36 percent. References in the Payday Loan Act to the fee that may be charged on such loans are revised to refer to the interest that may be charged. |
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| S.B. 694 Prohibits a payday lender, when collecting a payday loan, from (i) engaging in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt, (ii) using any false, deceptive, or misleading representation or means in connection with the collection of a debt, and (iii) using unfair or unconscionable means to collect or attempt to collect any debt. |
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| Washington | H.B. 1817 Provides that a borrower may convert the unpaid principal and fee authorized by RCW 31.45.082 into a no additional cost payment plan. Except as authorized by this act, the licensee may not assess any additional charge to convert a loan into a no additional cost payment plan under this subsection. A licensee is only obligated to extend to each borrower one no additional cost payment plan during any twelve-month period of time. A new 12-month period begins on the date that any prior no additional cost payment plan is paid in full. Provides that, to convert a small loan into a payment plan under this act, a borrower must return to the licensee’s point of sale location and request a payment plan no later than the close of business on the business day prior to the due date of the loan. |
| West Virginia | H.B. 2237 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. |
| Wisconsin | A.B. 4 Failed to pass pursuant to Senate Joint Resolution 1 3/21/08 Creates a maximum finance charge for payday loans. Under the bill, a lender, other than a bank, savings bank, savings and loan association, or credit union, who makes payday loans in the regular course of business, which the bill defines as a “payday loan provider,” may not assess a finance charge that exceeds two percent per month. In addition, a payday loan provider must obtain the license described above. Also, the bill requires the division to enforce the bill’s prohibition. |
| A.B. 511 Failed to pass pursuant to Senate Joint Resolution 1 3/21/08 Creates certain requirements applicable to payday loan transactions. Under the bill, a “payday loan provider” is a licensed lender that makes payday loans. A “payday loan” is a transaction between an individual with an account at a financial establishment and the payday loan provider in which the provider agrees to either: 1) accept from the individual a check, hold the check for at least three days before negotiating it, and before negotiating the check pay the individual an agreed amount; or 2) accept the individual’s authorization to initiate an electronic fund transfer (EFT) from the individual’s account, wait for at least three days before initiating the EFT, and before initiating the EFT pay the individual an agreed amount. The bill requires a payday loan provider, at least 15 minutes before entering into a payday loan with an applicant, to: 1) disclose to the applicant the total amount of all fees and costs, in dollars, and the annual percentage rate (APR), to be paid by the applicant assuming that the loan is paid in full at the end of the loan term; and 2) provide to the applicant a copy of certain written informational materials, described below, developed by the division. The payday loan provider must retain, for at least three years after the origination date of the payday loan, a record of compliance with these requirements. The bill requires the division to develop written informational materials, designed to educate, on payday loans and the payday loan industry. These informational materials must include: 1) a clear and conspicuous notice to payday loan applicants containing specified information; 2) certain aggregated information from reports submitted to the division by payday loan providers; and 3) a summary of actions that the payday loan provider may take against a payday loan customer if the customer defaults on the loan or the customer’s payment method is dishonored for insufficient funds. The bill also requires each payday loan provider to report annually to the division and pay a report filing fee. The report covers the payday loan provider’s business in the preceding calendar year and must include information required by the division. The report must also contain specified information, aggregated for all customers, including: 1) the number of payday loans originated, the number of payday loans rolled over, and the average number of times a rolled over payday loan was rolled over; 2) the average total fees, including costs and penalties, and average APR, for all payday loans of the payday loan provider, categorized by loans that were not rolled over and loans that were rolled over; 3) the number of payday loans resulting in the customer’s default; and 4) the number of payday loans on which the customer’s payment method was dishonored for insufficient funds and the average fees, including costs and penalties, charged to customers due to these insufficient funds accounts. The bill defines “rollover” or “rolled over” as the refinancing, renewal, amendment, or extension of a payday loan beyond its original term, including the consolidation of payday loans and any transaction in which a payday loan is repaid with the proceeds of another payday loan made by the same payday loan provider. Under the bill, a payday loan provider that violates these disclosure or reporting requirements may be required to forfeit not more than $200. The bill also requires the division to promulgate rules and prescribe forms related to the provisions of the bill. |
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| A.B. 574 Failed to pass pursuant to Senate Joint Resolution 1 3/21/08 Creates certain requirements applicable to payday loan transactions. Under the bill, a “payday loan provider” is a licensed lender that makes payday loans. A “payday loan” is a transaction between an individual with an account at a financial establishment and the payday loan provider in which the provider agrees to either: 1) accept from the individual a check, hold the check for at least three days before negotiating it, and before negotiating the check pay the individual an agreed amount; or 2) accept the individual’s authorization to initiate an electronic fund transfer (EFT) from the individual’s account, wait for at least three days before initiating the EFT, and before initiating the EFT pay the individual an agreed amount. A payday loan provider may not make a payday loan in a principal amount that exceeds $800 or 50 percent of the applicant’s next paycheck, whichever is greater. The bill also limits a consumer’s ability to “rollover” a payday loan. The bill defines “rollover” as the refinancing, renewal, amendment, or extension of a payday loan. Under the bill, a payday loan provider may enter into no more than one rollover of a consumer’s payday loan and, before entering into such a rollover, the consumer must make payment, applied to the existing payday loan, that reduces the outstanding balance on the existing payday loan by at least 50 percent. |
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