SB449 Summary

• Adds "Principal Balance" definition to the Deferred Presentment Services Act, meaning the balance due exclusive of interest, service charges, or other loan-related charges.

• Reduces maximum fee licensees may charge on deferred presentment transactions from 17.5% to 12.5% of the amount advanced and caps the maximum aggregate loan amount at $500.

• Prohibits licensees from extending loans to customers with: outstanding deferred presentment transactions of $500 or more, six or more transactions from all licensees in any 12-month period, an active extended repayment plan until 14 days after full payment, or military members without Military Lending Act compliance.

• Requires licensees to use a supervisor-designated common database to verify customers do not have outstanding deferred presentment transactions exceeding $500, and mandates licensees report transaction data to the supervisor.

• Prohibits licensees from using or threatening force, violence, or criminal prosecution against customers; establishes that deferred presentment transaction periods do not begin until the customer receives funds from the licensee.