HB 1058 Summary

• Reduces maximum fee for deferred deposit agreements from 15% to 36% annual percentage rate per year, with fees stated in both currency and APR format.

• Establishes licensure requirements for payday lenders (check cashers offering deferred deposits) through the Commissioner of Financial Institutions, including NMLS registration.

• Requires license applicants to submit fingerprints for criminal background checks, credit reports, and financial responsibility documentation; sets initial application fee at $900 with $600 annual renewal fee.

• Mandates surety bond of $30,000 to $250,000 based on annual deferred deposit transaction volume.

• Grants Commissioner authority to deny, suspend, or revoke licenses; conduct examinations; impose penalties up to $1,000 per violation; and take disciplinary action against violators.