SB110 Summary

• Expands licensure requirement for deferred presentment services to include services offered by mail, telephone, Internet, mobile device application, or in person.

• Increases nonrefundable license fees from $500 to $1,000 per location, with $500 paid to the State Banking Department and $500 to the General Fund.

• Makes it a criminal misdemeanor (fine of $100-$500 or imprisonment up to 6 months) to attempt to evade licensure requirements through subterfuge, brokering loans for unlicensed third parties, or disguising short-term loans as revolving credit.

• Regulates loan terms: maximum $500 per transaction, 6-month minimum term with equal monthly payments, maximum 45% annual finance charge, limits renewals to one additional rollover, requires 30-day waiting period between new loans, and prohibits front-loaded payments.

• Requires licensees to use third-party databases to verify customers do not have outstanding deferred presentment transactions exceeding $500, and mandates clear disclosure of fees and repayment options.