HB1883 Summary

• Establishes licensure requirement for small dollar lenders effective January 1, 2022, with oversight by the Division of Financial Institutions to regulate consumer loans up to $1,000 with installment-based repayment.

• Caps interest rates at 36% per annum with tiered monthly maintenance fees ($10-$25 depending on loan size) and limits total fees to 50% of principal loan amount.

• Requires written agreements, clear disclosures, and prohibits multiple outstanding loans per consumer; allows one renewal but thereafter requires full repayment.

• Mandates check casher registration and requires them to offer voluntary payment plans to customers entering their third consecutive deferred deposit transaction, structured as at least six equal payments not exceeding 5% of monthly income with maximum $30 administration fee.

• Appropriates funds for two full-time examiners in the Division of Financial Institutions and requires analysis of payday lending regulation's impact on consumers by 2021 legislative session.