HI SB106

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

For a $100 loan, the 7% fee corresponds to approximately 196% APR for a 14-day term and 86% APR for a 32-day term.

Maintains existing limits: checks cannot exceed $600 and deposits may be deferred for no more than 32 days.

Applies to all deferred deposit agreements entered into after the effective date of the Act.

Fees charged under this section remain exempt from state usury laws (chapter 478).