SB 694 Summary

• Increases annual license fee for unsecured loan lenders from $300 to $500 per location.

• Reduces maximum accumulated interest and fees from 75% to 35% of the initial loan amount for the entire loan term.

• Replaces loan renewal provisions with an Extended Payment Plan (EPP) option allowing borrowers to repay loans in up to four equal installments over 60-120 days without accruing interest, with a maximum of one EPP per twelve-month period per lender.

• Prohibits lenders from threatening or instigating criminal proceedings against borrowers with dishonored checks; violators must pay borrowers three times the dishonored check amount.

• Requires lenders to comply with Fair Debt Collection Practices Act restrictions on harassment, false representations, and unfair collection practices.