HF3170 Summary

• Establishes a new payday lending category called "consumer short-term loans" with a maximum loan amount of $350 and maximum term of 30 calendar days, effective August 1, 2010.

• Sets tiered fee and interest rate limits for payday loans based on loan amount: up to $5.50 for loans up to $50; up to 10% interest plus $5 administrative fee for loans $50-$100; up to 7% interest plus $5 administrative fee for loans $100-$250; and up to 6% interest plus $5 administrative fee for loans $250-$499.

• Establishes additional interest rate caps for closed-end loans ($499-$699 at up to 6%, $600-$699 at up to 5%, $700+ at up to 4%) and open-end loans (up to 7% interest plus $5 administrative fee for amounts $499-$1,000).

• Prohibits loan splitting, multiple simultaneous loans with the same lender, loan-to-loan repayment arrangements, and prohibits using payday loan proceeds to repay other payday loans, with a maximum aggregate principal of $350 per borrower.

• Provides borrower protections including written contracts in the negotiated language, disclosure of all fees and annual percentage rates, and penalties up to $1,000 per violation plus actual damages and attorney fees for violations of licensing and rate requirements.