Senate Bill 89 Summary

• Allows licensed check-cashing businesses to offer deferred presentment services (holding checks for up to 35 days) and charge a maximum fee of 15% of the cash advance amount, capped at $500 per transaction.

• Requires licensees to provide written disclosure of all fees and deposit dates complying with the federal Truth in Lending Act before entering into a transaction.

• Prohibits deferred presentment transactions with active military members or their dependents, customers with outstanding checks at other licensees, and rollover transactions (extending or redeeming a transaction within 24 hours).

• Allows customers a one-time annual extended payment plan if they declare inability to repay, permitting payment in at least four equal installments with no additional finance charges.

• Voids and makes unenforceable any transactions that violate these provisions; exempts deferred presentment transactions from standard payday loan regulations under Article 15.