HI SB286

Caps the annual percentage rate at 36% for deferred deposit (payday) loans, down from the current 15% fee structure that equates to 459% APR.

Grants customers the right to rescind a deferred deposit by returning the principal amount within one business day with no fees charged.

Permits customers to convert deferred deposits into installment loan plans if unable to repay, with equal payments not exceeding 5% of monthly gross income and terms of 90-180 days depending on loan amount.

Restricts collection practices by prohibiting threats of criminal prosecution, limiting contact frequency to three times per week, banning visits to residences/workplaces without invitation, and requiring maintenance of communication logs.

Requires check cashers to provide written agreements disclosing the annual percentage rate, total fees, payment amounts, and notices about rescission rights and installment plan options, plus post notices about alternative lower-cost loan options.