HF290 Summary

• Establishes a 36% annual percentage rate cap for consumer small loans (up to $350) with tiered charges based on loan amount ($5.50 for amounts up to $50, declining percentage rates for higher amounts).

• Defines consumer small loans as short-term, unsecured loans repayable in a single installment within 30 days maximum.

• Increases the consumer short-term loan cap from $1,000 to $2,000 and extends the minimum payment requirement from 60 to 120 days.

• Prohibits loan evasion schemes including disguised property sales, cash rebates for pretextual installment sales, and arranging loans with rates or amounts exceeding statutory limits through any means (mail, phone, internet).

• Makes loans void and unenforceable if made without proper licensing, in violation of contract requirements, or with interest/fees/charges exceeding statutory limits; borrowers may recover all collected money, actual damages, up to $1,000 statutory damages per violation, costs, and attorney fees.

• Effective August 1, 2023 for loans originated on or after that date.