HB342 Summary

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

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

• Makes it a misdemeanor (fine of $100-$500 and/or up to 6 months imprisonment) to attempt evasion of licensure requirements or to offer/broker deferred presentment loans without a license.

• Regulates loan terms by setting maximum $500 advance, 45 percent annual finance charge, 20 percent origination fee on first $300 loaned, and $7.50 monthly maintenance fee per $100 loaned (capped at $30/month), with minimum 6-month loan term and substantially equal monthly payments.

• Restricts renewals to one additional time (two continuous transactions maximum) before requiring full repayment and a 30-day waiting period; requires lenders to use third-party database to ensure customers do not exceed $500 in outstanding deferred presentment transactions.