OK SB1941

Lenders are prohibited from entering into a renewal of a deferred deposit loan transaction.

Lenders must verify through affidavit and commercially reasonable means (including manual investigation, electronic database query, or subscription to approved private database) whether an applicant has outstanding deferred deposit loans before approving a new loan.

A deferred deposit loan transaction is completed when the loan is paid in full after presentment or ACH debit, or when the debtor redeems the instrument; a new loan made more than 13 calendar days after the previous loan is not considered a renewal.

For borrowers entering a third consecutive loan, lenders must offer a written repayment plan option allowing repayment in four equal installments on regular wage payment dates, with a processing fee not to exceed $15 and a 15-day prohibition on additional loans after completion.

The act becomes effective November 1, 2014.