HB320 Summary

• Adds the term "Principal Balance" defined as the balance due and owed exclusive of any interest, service charges, or other loan-related charges to the Deferred Presentment Services Act.

• Limits deferred presentment transaction fees to an annual percentage rate (APR) of 36 percent and caps the maximum aggregate amount advanced to any borrower at $500 across all licensees.

• Prohibits licensees from extending loans to customers with outstanding deferred presentment transactions of $500 or more, six or more loans within 12 months, active extended repayment plans, or military members unless compliant with the Military Lending Act of 2007.

• Requires licensees to use a supervisor-designated common database to verify customers do not exceed the $500 cap and mandates submission of detailed transaction data before entering into each loan, with a maximum $1 fee per transaction.

• Makes any loan contract entered in violation void with no right to collect principal, interest, or charges, and establishes civil penalties up to $1,000 per violation plus criminal penalties for unlicensed operations.