H.B. 1317 Summary

• Establishes the Hawaii Credit Creation Pilot Program within the Division of Financial Institutions to increase availability of small dollar consumer loans between $600 and $5,000.

• Limits interest rates to 36% annually on loans and caps administrative fees at 7% of principal or $90, whichever is less, with delinquency fees not exceeding $14-$20 depending on delinquency length.

• Requires licensees to underwrite loans ensuring borrowers' total monthly debt service does not exceed 50% of gross monthly income and to report borrower payment performance to consumer reporting agencies.

• Permits use of referral partners with specific restrictions, including a compensation cap of $60 per loan and prohibition on passing referral fees to borrowers.

• Requires annual legislative reports on program participation, loan volume, default rates, credit score improvements, and violations, with program set to expire June 30, 2022.