Source: https://www.ncsl.org/research/financial-services-and-commerce/payday-lending-2016-legislation.aspx
Timestamp: 2020-05-31 10:41:40
Document Index: 108790098

Matched Legal Cases: ['§5', '§75', '§75', '§75', '§75', '§75', '§75', '§75', '§408', '§367', '§987', '§408', '§408', '§408', '§408']

Heather Morton 11/18/2016
In the 2016 legislative session, 25 states addressed legislation regarding payday lending and payday lending alternatives. Florida, Louisiana, Michigan and Utah enacted payday lending legislation. New Mexico adopted a resolution.
Alabama H.B. 296 Under existing law, short-term cash advance loans, also known as "pay day" loans, are governed under the Deferred Presentment Services Act. This bill repeals the Deferred Presentment Services Act. This bill also prohibits short-term cash advance lending and provide for a civil penalty for short-term cash advance lending.
Indefinitely postponed 4/28/16
Existing law regulates deferred presentment services. This bill allows the State Banking Department to require an applicant for a license to engage in deferred presentment services to apply through the Nationwide Multistate Licensing System and Registry and requires a license for each location at which deferred presentment loans are made. This bill requires a licensee who offers deferred presentment services to offer an extended repayment option prior to the commencement of a civil action; limits the fee that could be collected on a check returned for insufficient funds; provides for when the period of the deferred presentment transaction begins and eliminates any additional charge related to the payment of the proceeds of any deferred presentment transaction; and specifies that a licensee must use the statewide database to ensure that a customer does not have an outstanding deferred presentment transaction in excess of $500.
Alabama H.B. 342
Under existing law, a license is required for any person engaged in the business of deferred presentment services. This bill expands the licensure requirement for persons engaged in the business of deferred presentment services to include services offered by mail, telephone, internet, mobile device application, or in person. This bill increases the nonrefundable license fee and provide that one half of the increase would be paid to the State Banking Department and one half to the General Fund. This bill provides that a person who attempts to evade the licensure requirement for the business of deferred presentment services would be guilty of a criminal offense and provides penalties. This bill further regulates the business of deferred presentment services by regulating the fees, interest, number of loans, term of a loan, finance charges, and repayment of a loan.
Passed Senate 4/5/16
Amends §§5-18A-3, 5-18A-6, 5-18A-12, and 5-18A-13, Code of Alabama 1975, relating to the business of deferred presentment services. Increases the nonrefundable license fee and provides that one half of the increase would be paid to the State Banking Department and one half to the General Fund. Expands the licensure requirements for any person engaged in the business of deferred presentment services to include services offered by mail, telephone, internet, mobile device application, or in person. Provides that a person who attempts to evade the licensure requirement for the business of deferred presentment services would be guilty of a criminal offense. Provides penalties; further regulates the business of deferred presentment services by regulating the fees, interest, number of loans, term of a loan, finance charges, and repayment of a loan.
Alabama S.B. 330
Under existing law, lenders of $1,000 or less are licensed and regulated under the Alabama Small Loan Act. This bill authorizes non-bank lenders to issue short-term unsecured loans, known as flex loans. This bill provides for the licensure and regulation of lenders of flex loans by the State Banking Department. This bill establishes the maximum interest rate and maximum duration of a flex loan and provides for fees that may be charged to a customer. This bill sets qualifications, including financial guarantees, for lenders and provides civil penalties for violations by lenders. This bill also authorizes the State Banking Department to enforce the provisions of this act and promulgate rules.
To conference committee 4/20/16
Establishes the sale of flexible credit loans to be regulated under the authority of the Department of Financial Institutions.
Arizona S.B. 1447 Establishes the sale of flexible credit loans to be regulated under the authority of the Department of Financial Institutions.
Existing law authorizes the commissioner of Business Oversight to require certain financial service providers that are licensed and regulated by the Department of Business Oversight, including, among others, check sellers, proraters, escrow agents, finance lenders and brokers, residential mortgage lenders or servicers, and businesses making deferred deposit transactions, to pay their pro rata share of the costs and expenses of the department’s licensing and regulating activities. A violation of the licensing laws applicable to these financial service providers is a crime. This bill revises these provisions to require a licensee under the supervision of the department to pay to the commissioner its pro rata share of all costs and expenses in an amount sufficient, in the commissioner’s judgment, to meet the expenses of the department in administering the applicable licensing law for the next year that includes, but shall not be limited to, the cost of routine examinations and the provision of a reasonable reserve for contingencies, with a consideration of any deficit or less any surplus actually incurred in the prior fiscal year, as specified. The bill makes May 31 the uniform date for the commissioner to notify these licensees of the amount assessed for the next year, and generally give 30 days to all of these licensees to pay the assessment. The bill authorizes the commissioner, whenever he or she found it is necessary or advisable, to conduct a nonroutine examination of, or to devote any extraordinary attention to, any licensee and charge and collect from that licensee the department’s expenses, including, but not limited to, hourly wages and travel costs, for doing so. The bill authorizes the commissioner to maintain an action for the recovery of these costs in any court of competent jurisdiction. This bill raises the minimum assessment for a licensee under the Check Sellers, Bill Payers and Proraters Law from $150 to $1,000, and the California Finance Lenders Law from $250 to $800. The bill modifies the minimum calculation of an assessment for a licensee under the Escrow Law based on $5,000 per main office and $3,500 per each branch location, and the California Residential Mortgage Lending Act, based on mortgages loan originated by the licensee.
Signed by governor 9/22/16, Chapter 480
Existing law, the California Finance Lenders Law, generally provides for the licensure and regulation of finance lenders and brokers by the commissioner of Business Oversight and makes a willful violation of its provisions a crime. That law, until Jan. 1, 2018, establishes the Pilot Program for Increased Access to Responsible Small Dollar Loans, which requires licensees and other entities to file an application and pay a specified fee to the commissioner to participate in the program. The program authorizes a licensee approved by the commissioner to participate in the program to impose specified alternative interest rates and charges, including an administrative fee and delinquency fees, on unsecured loans of at least $300 and less than $2,500, subject to certain requirements. The program requires the commissioner, on or before Jan. 1, 2017, to post a report on his or her internet website summarizing utilization of the program, a recommendation whether the pilot program should be continued after Jan. 1, 2018, and the results of a random sample survey of borrowers. This bill extends the Pilot Program for Increased Access to Responsible Small Dollar Loans until Jan. 1, 2023, make a conforming change to the requirement for the commissioner to report a recommendation for further continuation of the program, and require additional annual reporting, as specified. The bill removes the requirement for the commissioner to conduct and report the results of a random sample survey of borrowers. The bill also makes a technical change to a cross-reference within the program provisions.
California S.B. 1290
Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders and brokers by the commissioner of Business Oversight. Existing law, the California Deferred Deposit Transaction Law, provides for the licensure and regulation by the commissioner of persons engaged in the business of making or arranging deferred deposit transactions. For the purpose of discovering violations of the law or for enforcement purposes, the commissioner is authorized to investigate the business of these licensees, and examine the books, accounts, records, and files used in the business, of every person engaged in those business activities, whether the person acts or claims to act as principal or agent, or under or without the authority of those laws. For the purpose of examination, the commissioner is required to have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all these persons. When conducting an examination or investigation of a licensee that is under common ownership with one or more other persons licensed under the law, this bill requires the commissioner to conduct a single consolidated examination that includes all licensees that share the same common ownership, as defined. The bill authorizes all books, accounts, papers, records, and files required by the commissioner in connection with a consolidated examination to be provided in electronic format. Not later than Jan. 1, 2020, the bill requires the commissioner to submit a report to the Legislature regarding the impacts of the consolidated examination procedure on consumers and licensees. The bill repeals these provisions on Jan. 1, 2021.
Delaware H.B. 446
This bill imposes a cap on the interest rate that may be charged for “alternative financial services” at an annual rate of interest of 100 percent. “Alternative financial services” is a term sometimes used for payday loans, installment loans, and other credit products generally targeted toward working class people without access to more traditional banking or credit card services. By placing a cap on interest rate in Chapter 22, the purpose of this bill is to circumscribe the ability of short-term, subprime lenders to take advantage of unsophisticated borrowers – regardless of the name or structure they may give the credit products. By its terms, Chapter 22 does not apply to more traditional financial products offered by banks, credit unions, credit card companies, and the like. The bill also prohibits the use of automated withdrawals on short-term loans regulated by Chapter 22 for delinquency payments or accelerated default payments. It prohibits repeat attempts to make an automated withdrawal for at least five days after a declined payment, unless the borrower authorizes another attempt in writing. This will prevent borrowers from being charged multiple fees by their banks for overdrafts or declined withdrawals when licensees try repeatedly in a short time frame to process an automated withdrawal.
Laid on table 3/7/16
Authorizes the Office of Financial Regulation (OFR) to deny license or take disciplinary action against a person who violates the Military Lending Act or regulations adopted under the act in connection with consumer finance loans, money services, or a deferred presentment transaction; prohibits a title loan lender, agent, employee, vendor, or affiliated party from violating such act and regulations; authorizes OFR to issue cease and desist order against state financial institution, subsidiary, service corporation, financial institution-affiliated party, or individual for violating such act or regulations adopted under act, to conduct certain investigations, and to seek specified remedies.
Died in committee 3/11/16
Provides the maximum amount that may be charged per annum for interest, fees, or other charges in deferred presentment transaction; prohibits engaging in device or subterfuge in order to evade specified requirements; declares that a deferred presentment transaction that does not comply with the specified requirements is void; declares that a deferred presentment transaction in which certain interest, fees, or other charges are charged is usurious.
Creates the Increased Access to Responsible Small-Dollar Loans Pilot Program; provides requirements and conditions for lenders to make loans under the program; requires the lenders and the Office of Financial Regulation to file certain reports.
Signed by governor 3/30/16, Chapter 160
Authorizes the Office of Financial Regulation to deny a license or take disciplinary action against a person who violates the Military Lending Act or the regulations adopted under that act in connection with a consumer finance loan under the Florida Consumer Finance Act.
Revises the maximum interest, fees, or other charges that may be charged, collected, or received directly or indirectly by a deferred presentment provider; specifies that deferred presentment transactions that do not comply with certain requirements are void.
Establishes the Increased Access to Responsible Small Dollar Loans Pilot Program. Provides general requirements for a program loan. Requires a program licensee to offer certain credit education to a borrower. Requires a program licensee and a referral partner to enter into a written referral partner agreement.
Georgia H.B. 812
Relates to industrial loans, payday lending, and pawnbrokers, respectively, so as to provide for the enforcement of the federal John Warner National Defense Authorization Act for Fiscal Year 2007.
To conference committee 4/20/15
Creates standards, including authorization for the Department of Commerce and Consumer Affairs to adopt rules, for check cashing businesses, including requirements for registration, surety, recordkeeping, examinations, and confidentiality. Sets new penalties for check cashing businesses that violate the established standards.
Establishes the Increased Access to Responsible Small Dollar Loans Pilot Program, within the department of commerce and consumer affairs division of financial institutions, to increase the availability of responsible small dollar investment loans of at least $300 but less than $2,500. Specifies requirements of the program, including application requirements, interest rates, use of finders, and fees. Requires a preliminary report to the legislature no later than 20 days prior to the convening of the regular session of 2018 and a final report no later than 20 days prior to the convening of the regular session of 2021. Pilot program repeals June 30, 2021.
S.B. 2784
Requires registration of check cashers, requires bond, requires verification that customer has only one deferred deposit agreement outstanding at any time, allows extended payment plan by customer, increases investigatory and enforcement powers, and increases penalties for violations.
Hawaii H.B. 2615
Creates a deferred deposit lending database program in DCCA to assist a deferred deposit lender in determining the eligibility of a potential borrower of a deferred deposit loan. Makes an appropriation.
Specifies a customer has the right to rescind a deferred deposit by returning the principal amount used to fund the deferred deposit within a specified time frame. Permits customers to convert a deferred deposit into a loan installment plan in certain circumstances and specifies requirements for the loan installment plan. Protects against harmful collection practices. Defines annual percentage rate. Requires a check casher to provide a written agreement to a customer that clearly discloses specific information relating to the cost and fees associated with the deferred deposit, among other things. Caps the annual percentage rate at no more than 36 per cent for deferred deposit of a personal check. Permits prepayment of deferred deposit agreements and loan installment plans with no additional fees.
Illinois H.B. 4901
Illinois H.B. 4903
Illinois H.B. 5495
Indiana S.B. 99
Amends the statute concerning small loans to require a lender to conspicuously disclose, both in the lending area of each of the lender's Indiana business locations and in the loan documents provided to borrowers, the: (1) median number of days that a borrower is indebted under one or more outstanding small loans with the lender during a calendar year; and (2) median number of small loans entered into by a borrower with the lender during a calendar year; based on all small loans made at all of the lender's Indiana business locations during the most recent calendar year. Provides that whenever a borrower enters into an initial small loan or a subsequent small loan with a lender (regardless of whether the subsequent small loan qualifies as a "consecutive small loan" made within seven days after a previous small loan is paid in full), the lender shall offer the borrower the option to repay the initial or subsequent small loan under an extended payment plan. (Current law requires a lender to offer a borrower the option to repay: (1) the third; and (2) any subsequent; consecutive small loan under an extended payment plan.) Provides that an extended payment plan may not require a borrower to make an installment payment in an amount that exceeds: (1) $50, if installments are paid on a biweekly or more frequent basis; or (2) $100 if installments are paid less frequently than biweekly.
Kentucky H.B. 520
Establishes Subtitle 12 of KRS Chapter 286 and creates new sections of that subtitle to define terms; requires a license to engage in the business of flex loans; requires that any applicant seeking a license provide a person upon whom service of process may be served. Voids any flex loan made by a person not licensed by the state. Allows the commissioner of the Department of Financial Institutions to void a flex loan for violations. Grants the commissioner authority to issue equitable remedies. Establishes the qualifications of an applicant for a license to make flex loans. Establishes the form requirements for an application to make flex loans. Establishes the filing fee for a license and establishes requirements for additional materials to accompany any application, and allows the commissioner to require a background check at the expense of the applicant. Requires the commissioner to investigate completed applications for compliance and if the requirements have been satisfied to issue a license to the applicant Grants the commissioner authority to take adverse action on a licensee after notice and a hearing for certain violations. Establishes the procedures for an adverse action taken by the commissioner. Requires licenses to expire each June 30. Prohibits transfer of a license, and sets out requirements for a change of control of a licensee; for the collection of interest and fees on a flex loan. Sets the maximum principal amount of a flex loan. Allows for the collection of fees after a default by a borrower; to prohibit unfair or deceptive acts by a licensee. Establishes requirements of disclosure by a licensee to a borrower. Establishes requirements for record-keeping by a licensee. Exempts flex loans from KRS 360.010. Grants authority to the commissioner to promulgate administrative regulations. Grants investigatory and subpoena powers to the commissioner. Allows the commissioner to issue cease and desist orders, and to bar persons from the business of a licensee. Allows the commissioner authority to enter consent orders and to seek criminal or civil penalties. Allows for a written complaint to be submitted to the commissioner, and allows the commissioner to petition a court for enforcement. Establishes notification requirements of certain events. Requires the filing of an annual report by a licensee. Requires the commissioner to prepare a reports and analysis reflecting results of operations of licensees. Allows the commissioner to license applications through a multistate automated licensing system. Establishes a database for flex loans and reporting requirements for licensees to the database. Establishes the information a licensee may access under a database; exempts certain reported information from disclosure. Prohibits local government units from regulating or having authority over flex loan plans. Establishes the name of this subtitle as the Flexible Credit Act.
Kentucky S.B. 101
Amends KRS 286.9-010 to define "annual percentage rate," "consideration," and "interest." Amends KRS 286.9-100, relating to deferred deposit transactions, to delete the service fee of $15 per $100 loan and establish a tiered maximum annual percentage rate of 36 percent. Provides that making a deferred deposit transaction in violation of the maximum interest provisions is an unfair, false, misleading and deceptive practice in violation of the Consumer Protection Act and subject to its rights and remedies. Prohibits a licensee from engaging in deceptive practices to evade the requirements of Subtitle 9 of KRS Chapter 286. Creates a new section of Subtitle 9 of KRS Chapter 286 to provide that knowing violation of the maximum allowable interest rate provisions shall be deemed a forfeiture of the entire interest for the transaction and the person who paid the interest, or his or her legal representative, may recover twice the amount paid in any action against the lender if commenced within two years of the deferred deposit transaction. States that this act may be cited as the Responsible Payday Lending Act.
Signed by governor 5/26/16, Act 200
Amends and reenacts R.S. 9:3578.4.1(G)(2)(a), relative to deferred presentment and small loans; to provide for the extended payment plan process.
Louisiana S.B. 311
Amends and re-enacts R.S. 9:3578.4(C), relative to loans. To provide relative to deferred presentment and small loans. Provides certain procedures and conditions for deferred presentment and small loans. Provides certain terms, requirements, and effects. Provides relative to certain unauthorized charges.
Louisiana S.B. 312
Prohibits a credit access business required to be licensed under the Consumer Credit Law or the Louisiana Deferred Presentment and Small Loan Act or the Louisiana Tax Refund Anticipation Loan Act or a representative of such businesses from making a telephonic solicitation call to a consumer regardless of whether the consumer's name and telephone number are on the National Do Not Call Registry.
Signed by governor 5/25/16, Public Act 140
Amends the Deferred Presentment Service Transactions Act to specify that a deferred presentment service transaction will be closed if a customer's check were redeemed by a debit card payment, or if a returned check were collected by one or more telephone-initiated entries (debits to a customer's account).
Signed by governor 5/25/16, Public Act 141
Amends the Deferred Presentment Service Transactions Act to do the following: (i) Requires a licensee to deposit a check held in connection with a deferred presentment service transaction if the check were not redeemed or exchanged, unless the drawer had entered into a written repayment plan. (ii) Allows a licensee to collect the check through telephone-initiated entries if a check were deposited and returned unpaid, and certain requirements were met. (iii) Requires a licensee to return a check, and specify the manner of return, if payment to satisfy an outstanding obligation were made. (iv) Specifies that a licensee could accept a payment by debit card only if the drawer certified that the debit card drew funds from the same account as the check.
Amends §75-67-519 to require licensed check cashers to extend one check to cover the amount of the loan for all loans exceeding $100.
Amends §75-67-519 to prohibit check cashers from cashing a delayed deposit check for any person who has an outstanding delayed deposit check with another check casher that has not been repaid in full. Directs the commissioner of banking to provide for the development of a database in which check cashers must record each delayed deposit transaction to prevent violations of the maximum amount that may be outstanding. Authorizes the commissioner to charge a fee to check cashers as necessary to maintain the database system. Provides that the maximum amount that check cashers may charge for cashing a delayed deposit check shall not exceed an annual percentage rate of 36 percent per annum on the face amount of the check.
Amends §75-67-419 to prohibit title pledge lenders from having an office located within a five-mile radius of a postsecondary institution; amends §75-67-505 to prohibit check cashing businesses from having an office located within a five-mile radius of a postsecondary institution.
Creates the Mississippi Flexible Credit Act. Authorizes lenders to make unsecured consumer loans that are primarily for personal, family or household purposes with an original principal amount that does not exceed $10,000 and with an original term that does not exceed 60 months. Authorizes lenders to provide unsecured consumer lines of credit that are primarily for personal, family or household purposes with an original principal balance that does not exceed $10,000. Requires lender to make certain disclosures to the consumer at or before consummation of the consumer loan or opening of the line of credit. Authorizes a lender to charge a finance charge for a consumer loan or consumer line of credit at any rate agreed to by the parties. Authorizes the lender to charge and collect certain additional fees and charges that are agreed upon between the lender and the borrower. Provides that certain actions by a lender are violations of this act. Amends §75-17-1 to conform to the provisions of this act.
S.B. 2612
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, which create the Mississippi Title Pledge Act; repeals §§75-67-501 through 75-67-539, which create the Mississippi Check Cashers Act.
Missouri H.B. 1711
This bill changes the laws regarding consumer credit interest rates. In its main provisions, the bill: (1) Requires any person making or offering a consumer credit loan to contract for and receive interest and fees in accordance with §§408.100, 408.140, and 408.170, RSMo, relating to small loans (§367.105); (2) Specifies that it is the intention of the people of Missouri to prevent lenders of payday loans, car title loans, and installment loans from charging excessive fees and interest rates that can lead families into a cycle of debt by: (a) Reducing the annual percentage rate for payday, title, installment, and other high-cost consumer credit and small loans from triple-digit interest rates to 36 percent per year; (b) Extending to veterans and others the same 36 percent rate limit in place for payday and title loans to active military families as enacted by the 109th U.S. Congress in 10 U.S.C. §987; and (c) Preserving fair lending by prohibiting lenders from structuring other transactions to avoid the rate limit through subterfuge (§408.100); (3) Prohibits any lender of small loans, subject to §408.100, from charging interest, fees, and finance charges at an annual percentage rate greater than 36 percent (§408.100); and (4) Prohibits a person from engaging in any device or subterfuge intended to evade the requirements of Chapter 408, relating to legal tender and interest, through any method including, but not limited to, mail, telephone, Internet, or any electronic means (§408.100). The bill contains a referendum clause and will be submitted to qualified voters in November 2016.
Missouri H.B. 1881 This bill changes the laws regarding unsecured loans of $500 or less, commonly known as payday loans. In its main provisions, the bill: (1) Specifies that the provisions regarding payday loans apply to unsecured loans of $750 or less. Currently, they apply to unsecured loans of $500 or less; (2) Allows a lender to renew a loan twice, instead of the current six times; (3) Prohibits a borrower from having more than $750 in outstanding loans at one time; (4) Prohibits a lender from making a loan to a borrower if the loan would cause the borrower to have more than one unsecured loan or from making a loan to a borrower within one day of the borrower paying or otherwise satisfying in full a previous payday loan; (5) Requires a lender to disclose to a borrower at the time of signing a loan the duration of the loan, amount and date of payments due, and amount of interest and fees to be charged throughout the duration of the loan; (6) Specifies that a lender's sole and exclusive remedy against a borrower who delivers a check, draft, or order that is not honored for payment on a loan will be a breach of contract claim and that a lender is barred from bringing a civil action for passing a bad check; and (7) Requires the Division of Finance within the Department of Insurance, Financial Institutions and Professional Registration to develop and administer a real-time statewide compliance system for licensed payday lenders to record each payday loan transaction.
Missouri H.B. 1924
This bill limits the annual percentage rate of interest and any fees charged for payday, title, installment, and other high-cost consumer credit and small loans to a combined rate of no more than 36 percent per year and prohibits a person from engaging in any device or subterfuge intended to evade the requirements of Chapter 408, RSMo, relating to legal tender and interest, through any method including, but not limited to, mail, telephone, internet, or any electronic means.
Missouri S.B. 647
This act prohibits lenders of consumer credit loans, title loans, consumer installment loans, and unsecured loans of $500 or less (commonly known as payday loans) from contracting for or receiving interest, fees, and finance charges on the unpaid principal balance of a loan in excess of 36 percent. Such lenders are prohibited from evading the requirements of this act through any method, including but not limited to mail, telephone, internet, or any electronic means. Such lenders are further subjected to several provisions of current law regulating interest on small loans. This act contains a referendum clause.
Nebraska L.B. 1036
Change provisions of the Credit Services Organization Act, the Delayed Deposit Services Licensing Act, and the Nebraska Installment Loan Act.
Failed to pass House 3/6/16
This bill repeals a provision relative to late fees on small loan installments in default. This bill also repeals a provision relative to the inclusion of a provision in the loan agreement that the borrower may cancel the loan transaction under certain circumstances.
New Jersey A.B. 673
New Mexico H.B. 84
Relates to lending; enacts new sections of the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955. Imposes a cap on interest rates. Voids contracts that exceed the interest rate cap. Repeals a section of the New Mexico Small Loan Act of 1955.
New Mexico H.M. 7
Requests the director of the state personnel office to conduct a study and a survey to determine the feasibility of providing low cost small loans to state employees.
Adopted 2/27/16
A.B. 5980
Passed Assembly 5/25/16
Requires a study and report on banking products and services offered in low income communities and the impact of traditional banks, credit unions and check casher services serving low income communities.
A.B. 9603
S.B. 4458
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.
Oklahoma S.B. 1074
Relates to the Deferred Deposit Lending Act; sets maximum interest rate for loans. States amount for certain charge for loan. Prohibits other charges. Relates to deferred deposit loan fees. Modifies language. Deletes certain fee amounts; provides for codification. Provides an effective date.
S.B. 1314
Enacting clause stricken 2/18/16
Relates to consumer credit. Creates the Flexible Credit Act. Provides short title. Defines terms. Requires certain license. Requires service agent. States requirements for licensure. Directs periodic review for compliance. Provides for rulemaking. States content of certain application. Sets certain fees. Requires financial statement and certain bond. Allows letter of credit in lieu of bond. States purpose of bond. Authorizes suit against bond for nonpayment.
Rhode Island H.B. 7432
Repeals provisions of the general laws regarding "payday lenders".
Rhode Island S.B. 2012
This bill amends the financial institutions laws to separate "check cashing" and "payday lending" licenses into separate license categories. It would also establish new laws governing the issuance of customer checks based on deferred deposits.
Rhode Island S.B. 2656
S.B. 1917
Authorizes a person licensed to offer flex loans to recover from a defaulting customer collection and court costs without referring the matter to an attorney if the flex loan plan or secured plan provides for the recovery of those costs.
Requires the department to implement a database no later than Jan. 1, 2018, for licensees providing deferred presentment and flex loan transactions to ensure that customers are not exceeding certain limits under present law for such transactions. Requires licensees to conduct database checks before entering into such transactions. Authorizes a fee to be charged per transaction.
Signed by governor 3/24/16, Public Chapter 248
This bill modifies provisions related to deferred deposit lending and identity theft. This bill: modifies reporting requirements; addresses operational requirements; amends extended payment plans; and makes technical and conforming amendments.
Enacting clause struck 3/10/16
This bill amends the venue requirements for civil actions brought by deferred deposit lenders and makes technical and conforming amendments.
Virginia H.B. 45
Prohibits the State Corporation Commission (SCC) from issuing a license for the operation of a payday lending office or motor vehicle title lending office if such office is within 20 miles of a casino facility located in any state. Casino facilities include Indian gaming operations conducted pursuant to the federal Indian Gaming Regulatory Act. The measure includes limitations on the SCC's authority to revoke or suspend an existing license when a violation of the 20-mile provision exists on July 1, 2016, or when a violation would be created by the opening of a casino facility after a license was issued.
Virginia H.B. 250
Caps the rate of interest that may be charged on motor vehicle title loans, consumer finance company loans, payday loans, and open-end credit plans at 36 percent per year. The measure prohibits a lender from charging a membership fee, participation fee, or transaction fee in connection with any such extension of credit. The measure also prohibits a person making such a loan from (i) conditioning the making of the loan on the consumer's use of preauthorized transfers; (ii) making such a loan pursuant to an agreement under which the consumer permits the lender to access the consumer's account through preauthorized transfers; (iii) using an electronic check conversion transaction as a method of receiving a payment or collecting any amount due in connection with a loan; (iv) making such a loan with terms and conditions that, if the consumer was a covered member of the armed forces or a dependent of such a member, would violate the Military Lending Act; or (v) restricting the authority of the consumer to disclose to any person the provisions of any loan agreement.
Virginia H.B. 634
Prohibits the State Corporation Commission (SCC) from issuing a license for the operation of a payday lending office or motor vehicle title lending office if such office is within five miles of a military installation. The measure includes limitations on the SCC's authority to revoke or suspend an existing license when a violation of the five-mile provision exists on July 1, 2016, or when a violation would be created by the opening of a military installation after a license was issued.
Virginia H.B. 1324
Caps the amount of fees and interest that a lender may collect on a payday loan, car title loan, open-end credit plan loan, and consumer finance loan at 500 percent of the principal loan amount.
Virginia H.B. 1366
Conforms provisions that prohibit lenders from making payday loans or motor vehicle title loans to covered members of the armed forces, persons on active guard or reserve duty, and dependents of such persons. The bill expands these prohibitions to include loans to members of the Virginia National Guard not on active duty and their dependents.
Passed by indefinitely 1/25/16
Virginia S.B. 54
Removes provisions of the Payday Loan Act that authorize lenders to charge a loan fee or verification fee, thereby limiting permissible charges on payday loans to interest at a maximum annual rate of 36 percent.
Incorporated into S.B. 54 1/25/16
Creates a new small consumer installment loan regulated by the Department of Financial Institutions (DFI). Permits a loan of up to $1,000 for a minimum of six months and a maximum of 12 months. Allows an origination fee of 15 percent of the loaned amount, amortized over the life of the loan. Allows an interest rate of 36 percent per annum. Allows a maintenance fee of 7.5 percent of the total loaned amount per month with a maximum fee of $60 a month. Provides for a repayment plan prior to any civil action upon a loan in default. Makes military borrowers ineligible for a small consumer installment loan. Creates prohibited practices for licensees. Eliminates traditional payday loan product. Exempts the late fee and monthly maintenance fees from annual adjustment for inflation.
S.B. 5613
Indefinitely postponed 2/25/16
Changes the total number of small loans a borrower may have from eight to 16 in a 12-month period.
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