HB 1081 Summary

• Licensees may lend up to $25,000 at maximum interest rates of 30% per annum on the first $3,000, 24% on amounts $3,000-$4,000, and 18% on amounts $4,000-$25,000.

• Creates alternative installment loan option for $300-$2,000 loans with 6-24 month terms, charging a nonrefundable processing fee up to 10% of amount financed or $150, plus a monthly handling charge of $5 per $100 (for $300-$500 loans) or $4 per $100 (for $500-$2,000 loans).

• Borrowers may rescind installment loans made under the alternative option by returning the loan amount within 5 business days, with processing and handling fees cancelled.

• Licensees must refund or credit unearned handling charges if an installment loan is paid in full at least 30 days before the final installment is due, calculated using the actuarial method.

• Prohibits licensees from paying compensation or rewards to any person for referring loan applicants if the amount is charged directly or indirectly to the borrower.