HI HB304

Reduces the maximum fee for payday loans (deferred deposit check agreements) from 15 percent to 7 percent of the check's face amount under Hawaii Revised Statutes Section 480F-4(c).

Applies the reduced fee to all payday loan agreements entered into after the bill's effective date.

For a $100 loan, the 7 percent fee reduces the annual percentage rate (APR) to approximately 196 percent for a 14-day term and 86 percent for the maximum 32-day term, compared to the current 460 percent and 201 percent APRs respectively.

Maintains the existing $600 maximum check amount and 32-day maximum deferral period for payday loans.

Takes effect upon approval and applies to check cashing entities operating in Hawaii, including out-of-state and online lenders conducting business in the state.