SB330 - Flexible Credit Act

• Authorizes non-bank lenders to issue short-term unsecured loans called "flex loans" with maximum principal balance of $2,000 and requires minimum monthly payments reducing principal by at least 3%.

• Establishes maximum interest rate of 36 percent per annum plus customary fees for account administration, with loans subject to prepayment without penalty.

• Requires State Banking Department licensure with minimum tangible net worth of $50,000 per location, audited financial statements, and surety bonds of $25,000 (maximum aggregate $200,000 per licensee).

• Prohibits customers from holding more than one flex loan plan at a time and mandates lenders provide written disclosures complying with federal Truth in Lending Act requirements.

• Establishes enforcement authority for the State Banking Department to suspend or revoke licenses, levy civil penalties up to $1,000 per violation, and requires annual licensee reporting; becomes effective January 1, 2017.