HI SB2679

Caps annual percentage rate on deferred deposit (payday) loans at 36% maximum, replacing the previous 15% fee structure that could reach 459% APR.

Grants customers the right to rescind a deferred deposit by returning the principal within one business day with no penalty and requires return of postdated checks held as collateral.

Permits customers unable to repay to convert deferred deposits into loan installment plans with equal payments not exceeding 5% of monthly gross income and terms of 90-180 days (maximum 6 months).

Requires written agreements disclosing principal amount, APR, total fees in dollars and APR percentage, payment schedules, and notices of rescission and installment plan rights.

Prohibits harmful collection practices including threatening criminal prosecution, threatening unauthorized legal action, visiting residences or workplaces uninvited, impersonating law enforcement, and harassing communications (limited to 3 contacts per week, no calls between 9 p.m. and 7:30 a.m.).

Permits penalty-free prepayment of deferred deposits and installment plans with prorated refunds of unearned fees.