Loading chat...
ID S1314
Bill
Status
3/26/2014
Primary Sponsor
Commerce and Human Resources Committee
Click for details
AI Summary
-
Payday loan maximum principal amount remains $1,000, with borrowers limited to aggregate outstanding loans of $1,000 plus allowable fees per licensee.
-
Payday lenders prohibited from making more than two electronic representments of a borrower's check to a depository institution.
-
Payday loans capped at 25% of borrower's gross monthly income, with lenders required to obtain income information from borrowers at least once every 12 months.
-
Borrowers granted one-time right per 12-month period to request extended payment plans with at least four equal payments over minimum 60 days, with no additional interest or fees beyond original loan terms.
-
Lenders must provide written disclosures in 12-point bold capitalized type before fund disbursement, including warnings about short-term use, fee obligations, rescission rights, high-cost features, complaint procedures, and extended payment plan availability.
Legislative Description
Amends and adds to existing law to provide that a payday lender shall not make more than two electronic representations of a borrower's check; to provide that a payday loan shall not exceed 25% of a borrower's gross monthly income; to provide that a lender shall obtain information on a borrower's gross monthly income; to provide for extended payment plans and the provisions for extended payment plans; and to provide for written disclosures to a borrower before funds are disbursed.
PAYDAY LOANS
Last Action
Signed by Governor on 03/26/14 Session Law Chapter 270 Effective: 07/01/2014
3/26/2014