HB587 Summary

• Allows customers to repay deferred presentment transactions (payday loans) over a six-month period with equal monthly installments instead of lump-sum repayment.

• Prohibits licensees from extending or rolling over deferred presentment transactions; permits only one additional rollover before requiring full repayment.

• Reduces the extended repayment option from four months to three equal monthly installments when customers cannot repay the full balance after one rollover.

• Permits licensees to collect a bad check fee for each individual bad check presented, and requires use of a supervisor-designated common database to verify customers do not have outstanding deferred presentment transactions exceeding $500.

• Requires licensees to annually report business information to the supervisor by December 1, and mandates the supervisor to publish aggregated data analyzing deferred presentment service utilization; effective January 1, 2015.