HB297 Summary

• Requires State Banking Department to allow applicants for deferred presentment licenses to apply through the Nationwide Multistate Licensing System and Registry, with separate licenses required for each location where loans are made.

• Reduces maximum fee on deferred presentment transactions from 17.5% to 12.5% of amount advanced, with maximum loan amount remaining $500.

• Mandates licensees offer customers an extended repayment option of four equal monthly installments prior to commencing civil action for collection, with 15-day notice period.

• Specifies transaction period begins when funds are received by customer and eliminates any additional charges related to payment of loan proceeds.

• Requires licensees to use statewide database to verify customers do not have outstanding deferred presentment transactions exceeding $500 and prohibits entering into more than six transactions or $2,500 total in principal within a 12-month period.