HI HB228

Reduces the maximum fee for payday loans (deferred deposit transactions) from 15 percent to a specified percentage of the check face amount (specific percentage left blank in bill text).

Applies to all deferred deposit check agreements entered into after the bill's effective date.

Current law allows check cashers to charge up to 15 percent for deferring deposit of personal checks up to $600 for a maximum of 32 days, which equates to approximately 460 percent APR on a 14-day loan.

Takes effect on July 1, 2050.

Bill notes that other states have reduced payday loan fees to 24-36 percent APR and that Congress established a 36 percent APR cap for service members under the Military Lending Act.