HB531 Summary

• Allows customers to repay deferred presentment transactions (payday loans) over three equal monthly installments instead of a lump sum.

• Prohibits the extension or "rollover" of deferred presentment transactions with the same account without full redemption.

• Reduces the extended repayment option from four months to three months for customers unable to repay the outstanding balance in full after the initial loan period and one rollover.

• Permits licensees to collect a bad check fee for each returned check and requires licensees to use third-party databases to verify customers do not have outstanding payday loans exceeding $500.

• Requires licensees to report transaction information to the State Banking Department's Supervisor of the Bureau of Loans within a specified time frame, with the Supervisor publishing aggregated data to the public.