HB 1058 Summary

• Reduces the maximum fee check cashers may charge for deferred deposit agreements from 15% to 36% annually, expressed as an annual percentage rate determined under the federal Truth in Lending Act.

• Establishes a new licensure scheme requiring check cashers that enter into deferred deposit agreements (payday lenders) to register with NMLS and obtain licenses from the Commissioner of Financial Institutions.

• Sets licensing fees including $900 initial application fee, $600 annual renewal fee for primary location, and $600/$450 for branch offices, plus various processing and background check fees.

• Requires applicants to meet fitness standards including no felony convictions within 7 years (or ever for fraud/dishonesty crimes), demonstrated financial responsibility, and a surety bond of $30,000-$250,000.

• Grants the Commissioner broad enforcement authority including investigation, examination, and disciplinary powers up to license revocation, with penalties up to $1,000 per violation and additional $10,000 penalties for violations targeting elders.