CS/CS/HB 857 - Deferred Presentment Transactions Summary

• Establishes a new "deferred presentment installment transaction" category for loans repayable in installments, with a maximum face amount of $1,000 exclusive of fees, compared to $500 for non-installment transactions.

• Caps fees at 10 percent for standard deferred presentment transactions and 8 percent of the outstanding transaction balance on a biweekly basis for installment transactions; prohibits prepayment penalties.

• Requires installment transactions to have terms between 60-90 days with fully amortizing payments at intervals of 13 days to 1 calendar month; limits non-installment transactions to 7-31 days.

• Allows drawers to request one deferred payment on installment transactions and establishes a 60-day grace period for standard transactions if the drawer cannot pay, contingent on completing consumer credit counseling.

• Mandates a common database accessible by deferred presentment providers to verify outstanding transactions and enforce the prohibition on multiple simultaneous agreements; effective date July 1, 2019.