HI HB380

Reduces the maximum fee for payday loans (deferred deposit transactions) from 15% to 7% of the check's face amount.

A $100 loan for 14 days at the new 7% rate equates to an APR of approximately 196%, compared to the previous 460% APR under the 15% fee structure.

Maintains existing limits on payday loans: maximum check face amount of $600 and maximum deferral period of 32 days.

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

Payday loan fees remain exempt from Hawaii's usury laws under chapter 478.