SB 593 Summary

• Requires non-bank lenders making unsecured loans of $500 or less to obtain a license from the director of finance with an annual fee of $300 per location.

• Eliminates loan renewal restrictions and instead caps charges at $15 per $100 of principal for the first 30 days, then 3% monthly on outstanding balance after day 30.

• Prohibits loans from being repaid with proceeds of another loan from the same or affiliated lender, and limits total outstanding loans to $500 per borrower at any time.

• Requires lenders to post notice of maximum rates in their office and provide borrowers with written notice of the right to cancel loans within one business day without costs.

• Authorizes the attorney general to seek injunctions, civil penalties up to $1,000 per day, and restitution for violations, and requires annual reporting to the legislature on licensed lenders' activities.