| State: |
Bill Summary: |
| Delaware |
H.B. 152
Signed by governor 7/12/05, Chapter 145
Substantially reenacts the civil bad check statute and sets damages at $50.00 for the first bad check, draft, or order for the payment of money by a drawer to the plaintiff within one year. Damages are set at triple the amount of the bad check, draft or order for the second or subsequent bad check, draft, or order within one year not to exceed $250. It further specifies that the fee for a dishonored check prior to commencement of an action shall be $40. It expressly provides that damages or fees may not be obtained under this Act in any action for repayment of a short-term consumer loan, also known as a pay-day loan, made by a bank and subject to 5 Del. C. § 978 or made by a licensed lender and subject to 5 Del. C. § 2235A. |
| Hawaii |
H.C.R. 172
Passed both houses 5/5/05
Requests the auditor to perform a sunrise review of the registration of payday lenders and deferred deposit check cashers. |
| Illinois |
H.B. 1100
Signed by governor 6/9/05, Public Act 94-0013
Creates the Payday Loan Reform Act. Provides that the Division of Financial Institutions of the Department of Financial and Professional Regulation shall license and regulate entities that offer payday loans (loans under which a lender accepts a post-dated check, authorization to debit a consumer's bank account, or an interest in a consumer's wages as security for the loan). Establishes requirements and restrictions applicable to license applications and licensing. Contains provisions regarding: limitations, requirements, and disclosures applicable to loan agreements, terms of loans, finance charges, and renewal of loans; revocation, suspension, and surrender of licenses; information to be available to the public; complaint handling; hearings; books and records; reports; advertising; prohibited acts; bonding; administrative rules; and other matters. Amends the Financial Institutions Code to provide for the administration of the Payday Loan Reform Act. Amends the Consumer Installment Loan Act to provide that the Act does not apply to payday loans. Provides that a violation of the Payday Loan Reform Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. |
| Kansas |
H.B. 2172
Signed by governor 4/15/05
Removes the tiered fee structure assessed on cash advance “payday” loans. Instead, the bill allows lenders to collect a finance charge of 15 percent of the amount of the cash advance in addition to a $5 administrative fee. Establishes numerous limits on a lender’s ability to exercise collection actions if the borrower is a member of the military. |
| Louisiana |
H.B. 696
Signed by governor 6/21/05, Act 99
Prohibits a licensee from taking any direct or indirect interest in property in connection with a small loan or deferred presentment transaction. |
| Maine |
L.D. 788
Signed by governor 5/18/05, Resolve Chapter 24
Authorizes the Office of Consumer Credit Regulation to study the payday advance industry and related consumer credit lending issues in Maine. |
| Michigan |
H.B. 4834
Signed by governor 11/26/05, Public Act 244
Creates a new act, the Deferred Presentment Service Transactions Act. Defines a deferred presentment service transaction as a transaction between the licensee and a customer under which the licensee agrees to 1) pay to the customer an agreed-upon amount in exchange for a fee and 2) hold a customer's check for a period of time before negotiation, redemption, or presentment of the check. Requires a business engaging in these transactions to have a license from the commissioner of the Office of Financial and Insurance Services (OFIS). |
| Montana |
S.B. 99
Signed by governor 3/24/05
Revises the Montana Deferred Deposit Loan Act; provides that the Department of Administration may not issue or renew the license of an applicant for licensure if the criminal history of the employees of the applicant demonstrates any convictions involving fraud or financial dishonesty or if the Department's findings show adverse civil judgments involving fraudulent or dishonest financial dealings; reduces the period for the retention of certain records by a licensee from four years to two years. |
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S.B. 165
Signed by governor 4/8/05, Chapter 210
Revises consumer loan laws; provides that a consumer of a deferred deposit loan has the right to rescission through the first business day following the execution of the loan agreement; allows arbitration clauses in loan agreements; establishes fairness standards for mandatory arbitration clauses in deferred deposit loan agreements. |
| Nevada |
A.B. 1, Special Session
Signed by governor 6/17/05, Chapter 6
Makes technical corrections to certain legislative measures, including payday loans. |
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A.B. 384
Signed by governor 6/14/05, Chapter 414
Establishes uniform standards and procedures for the licensing and regulation of check-cashing services, deferred deposit loan services, payday loan services and title loan services; repeals provisions governing check-cashing services and deferred deposit loans to conform with the uniform standards and procedures; provides remedies and administrative penalties; and provides other matters properly relating thereto. |
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S.B. 431
Signed by governor 6/14/05, Chapter 427
Relates to financial institutions; establishes requirements relating to applications for certain licenses; establishes additional grounds for refusing to issue or for suspending or revoking certain licenses; authorizes the commissioner of Financial Institutions to conduct certain activities to investigate violations of certain regulated activities; revises the provisions governing the use of business names by financial institutions; increases the maximum amount of various fees and fines imposed on financial institutions; authorizes the commissioner of Financial Institutions to establish the amount of certain fees by regulation; revises the provisions governing the licensure of agents involved in the transmission of money and financial instruments; revises the provisions governing liability for nonpayment of certain financial obligations; revises the provisions governing certain interest rates; revises the provisions governing check-cashing services and deferred deposit services; authorizes a person to recover in a civil action compensation against a person who operates a deferred deposit service or check-cashing service without a license; revises the provisions governing collection agencies; increases the amount of certain required surety bonds; revises the provisions governing examination of credit unions; provides for certain administrative fines and penalties; and provides other matters properly relating thereto. |
| North Dakota |
H.B. 1127
Signed by governor 3/31/05
Relates to consumer finance, money broker and collection agency licensee requirements and fees, and deferred presentment service provider licensee requirements, fees, and renewal applications. |
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H.B. 1321
Signed by governor 4/11/05
Relates to deferred presentment service transaction procedures and limitations. |
| Rhode Island |
H.B. 6003
Became law without governor’s signature 7/9/05, Chapter 230
Amends certain time limits and dollar amounts in regard to deferred deposits of customer checks. The act would also increase the amount that a licensee could charge for deferred deposit transaction fees to up to 15 percent of the face amount of the check. |
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S.B. 773
Became law without governor’s signature 7/9/05, Chapter 235
Amends certain time limits and dollar amounts in regard to deferred deposits of customer checks. The act would also increase the amount that a licensee could charge for deferred deposit transaction fees to up to 15 percent of the face amount of the check. |
| Texas |
S.B. 1479
Signed by governor 6/17/05
Protects military members and their families from certain actions by payday lenders. Prohibits lenders from taking certain actions against military personnel and requires lenders to make certain disclosures to military customers. |
| Utah |
S.B. 138
Signed by governor 3/17/05
Addresses the interest that can be charged on a judgment related to a deferred deposit loan. |
| Virginia |
H.B. 1156
Signed by governor 3/22/05, Chapter 571
Prohibits a licensed payday lender from entering into a payday loan with a member of the armed forces from a location that has been declared off-limits by a military base commander. With respect to payday loans to military personnel or their spouses, lenders shall not garnish military wages or conduct collection activities when the service member is deployed to a combat or combat support posting. The measure also clarifies that loans based on income tax refunds are not payday loans, and prohibits unlicensed person from engaging in payday loans or arranging or brokering payday loans for consumers residing in Virginia, whether or not the lender has a location in Virginia. |
| Washington |
S.B. 5415
Signed by governor 5/3/05, Chapter 256
Defines a "military borrower" to include any active duty member of the armed forces of the United States and any member of the National Guard or the reserves of the armed forces of the United States who has been called to active duty. A licensee shall not: 1) garnish any wages or salary paid for service in the armed forces when collecting any delinquent small loan; 2) contact the military chain of command of a military borrower in an effort to collect a delinquent small loan; and 3) make a loan to a person that the licensee knows is a military borrower from a specific location that a military base commander has notified the licensee in writing is designated off-limits to military personnel. A licensee must: defer all collection activity against a military borrower who has been deployed to a combat or combat support posting for the duration of the posting; and honor the terms of any repayment agreement between the licensee and any military borrower, including any repayment agreement negotiated through military counselors or third party credit counselors. |
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