HI HB1192

Establishes a new regulatory framework for installment loans in Hawaii, capping loan amounts at $1,500 with maximum loan charges of 50% of principal and an annual interest rate not exceeding 36%.

Requires installment loan providers to be licensed by the Commissioner of Financial Institutions and comply with extensive consumer protection requirements, including written agreements, payment schedules, and prohibitions on collateral or add-on products.

Grants consumers a right to rescind loans within three business days, restricts renewals to one time only, and prohibits lenders from requiring military servicemembers to pay monthly maintenance fees.

Repeals statutory authorization for deferred deposit (payday) transactions effective January 1, 2022, and amends usury laws to exempt installment loans from rate limitations.

Requires installment lenders to register with the Nationwide Multistate Licensing System and Registry and maintain minimum surety bonds ranging from $30,000 to $250,000 depending on annual loan volume.