SB404 Summary

• Clarifies that deferred presentment service providers must be licensed by the State Banking Department regardless of transaction method (mail, telephone, Internet, or in-person), and any unlicensed transactions are void and uncollectable.

• Eliminates the one-renewal option for deferred presentment transactions and requires at least 48 hours (rather than next business day) to pass before entering a new transaction after full repayment.

• Establishes free extended repayment plans of up to 60 days for customers unable to pay at maturity, with mandatory participation in financial literacy programs; customers may request only one plan per 12-month period and cannot obtain new transactions while on a plan.

• Requires licensees offering installment loans to inform customers of alternative products after six successful deferred presentment transactions in 12 months, and prohibits using proceeds from other loan types to repay deferred presentment transactions.

• Imposes a 14-day waiting period before new transactions for customers who have made 12 or more transactions in the previous 12 months; allows collection of $18 late fees on missed repayment plan installments.