SB1314 Summary

• Establishes the "Flexible Credit Act" creating a new licensing framework for businesses making short-term flex loans in Oklahoma, regulated by the Department of Consumer Credit Administrator.

• Defines flex loans as written credit agreements with terms not exceeding 12 months, allowing unsecured or secured loans subject to prepayment without penalty, with maximum principal of $3,000 adjusted biannually for inflation.

• Sets licensing requirements including minimum $50,000 tangible net worth per location, $500 filing fee, audited financial statements, and $25,000 surety bond per location (capped at $200,000 aggregate) to protect consumers.

• Limits licensee charges to 20% periodic interest rate monthly, requires minimum 3% principal reduction per month, prohibits handling charges on returned checks, and mandates clear written disclosures complying with federal truth-in-lending laws.

• Grants the Administrator authority to examine licensees, investigate complaints, suspend/revoke licenses, assess civil penalties up to $1,000 per violation, and requires annual reporting; preempts local government regulation of flex plan loans.