DE HB289

Limits short-term consumer loans (payday loans) to a maximum of 5 loans per borrower in any twelve-month period, with violations rendering the loan void and prohibiting collection of principal, interest, fees, or charges.

Increases the loan amount threshold defining short-term consumer loans from $500 to $1,000, maintaining the requirement that loans have a repayment period of less than 60 days and are not secured by vehicle title.

Establishes a real-time database operated by the Banking Commissioner to track short-term consumer loans, requiring licensees to submit borrower information and loan details immediately upon loan origination and to update when loans are paid off.

Modifies workout agreement requirements to eliminate the 10% net reduction per payment period and instead require equal installments over at least 90 days with no additional fees or interest charges.

Requires the Banking Commissioner to submit annual reports to the General Assembly by March 15 detailing loan transaction volumes, borrower demographics, interest rates, default rates, and other relevant data about short-term consumer lending.

Effective January 1, 2013.