State

Legislation

Alabama

H.B. 18
Regulates deferred presentment check-cashing services.

S.B. 6
Regulates deferred presentment check-cashing services.

S.B. 30
Regulates deferred presentment check-cashing services.

S.B. 290
Regulates deferred deposit loans.

California

A.B. 425
Authorizes a check casher to receive an administrative fee of no more than $6.50 for each deferred agreement entered into with a customer; prohibits a check casher from entering into more than six deferred deposit transactions in a 12-month period with the same customer; and prohibits repayment, refinancing, or consolidation of one deferred deposit transaction with another by the same, or a related, check casher, as specified. Willful violation of these requirements would be a misdemeanor and, by expanding an existing crime, the bill would impose a state-mandated local program. Directs the department of justice to conduct a feasibility study, and to report to the governor and legislature by a specified date, relating to computer tracking of deferred deposit transactions.

A.B. 1973
Amends various provisions regarding check cashing services. Defines the term "consecutive transaction" to mean a deferred deposit transaction that a check casher and a customer enter into within three business days of a previous deferred deposit transaction. Requires that the face amount of a deferred deposit check may not exceed $300 plus a specified fee or 25 percent of a customer's gross monthly income, whichever is less. Requires that a check casher provide specified information to the department of dustice and that failure to provide this information may result in a $1,000 fine. Requires that a check casher entering into a deferred deposit transaction with a customer provide the customer with a written agreement in a specified form. Allows a customer who enters into a deferred deposit agreement to rescind the transaction at no cost at any time prior to the close of the business day following the date of the transaction by paying the check casher the amount of money advanced to the customer. Prohibits a check casher from engaging in specified activities in conducting a deferred deposit business. Requires a check casher who conducts deferred deposit transactions to make available credit counseling information to customers, to hand this information directly to customers who engage in specified transactions, and to post a toll-free telephone number, as specified, for receiving complaints in a readily visible location. Eestablishes a lower fee limit when the customer engages in the fifth consecutive deferred deposit transaction, as defined. Prohibits using one deferred deposit transaction to repay, refinance, or consolidate another deferred deposit transaction.

S.B. 834
Authorizes a city attorney or the district attorney, in addition to the Attorney General, to bring a civil action for a violation of the deferred deposit transactions provisions. Removes references to direct deposit transactions contained in the provisions and instead enacts the deferred deposit loan act, as specified.

S.B. 1483
Amends various provisions regarding deferred deposit transactions. Defines the term "consecutive transaction" to mean a deferred deposit transaction that a check casher and a customer enter into within three business days of a previous deferred deposit transaction. Provides that the maximum loan amount for a deferred deposit transaction shall be 25 percent of the customer's gross monthly income, as certified by the customer, or $300, whichever is less, and would revise the fee limit on a deferred deposit loan to state that the fee shall not exceed 15 percent of the amount advanced. Establishes a lower maximum loan limit when the customer engages in a fourth consecutive deferred deposit loan, as defined. Requires a check casher to wait five business days after the fourth consecutive deferred deposit transaction is collected upon before offering the customer another deferred deposit transaction.

S.B. 1501
Authorizes a city attorney or the district attorney, in addition to the Attorney General, to bring a civil action for a violation of the deferred deposit transactions provisions. Removes references to direct deposit transactions contained in the provisions and instead enacts the deferred deposit loan act, as specified.

Connecticut

H.B. 5482
Requires the commissioner to consider the proximity of check chasing businesses to one another when issuing licenses to check cashing facilities.

Florida

H.B. 553
Revises definitions; provides additional grounds for disciplinary action; provides for continuation of certain administrative proceedings under certain circumstances; deletes provisions providing public records confidentiality for certain hearings, proceedings, & emergency orders; revises time periods for registration renewals; creates deferred presentment act; provides procedures for recovering damages for worthless checks.

H.B. 661
Provides additional rules for certain check cashing activities and check cashers.

S.B. 1730
Provides additional grounds for disciplinary action; revises deposit of fees and assessments; adds fee for authorized vendor or branch locations; creates part IV of Money Transmitters' Code; provides registration requirements for deferred presentment transactions; provides procedures for recovering damages for worthless checks; requires maintenance of records for time certain.

S.B. 2278
Provides additional grounds for disciplinary action; revises deposit of fees and assessments; adds fee for authorized vendor or branch locations; creates part IV of Money Transmitters' Code; provides registration requirements for deferred presentment transactions; provides procedures for recovering damages for worthless checks; provides that counties and municipalities may enact more restrictive ordinances.

Hawaii

S.B. 362
Requires the registration of check-cashing businesses.

Idaho

S.B. 1405
Amends existing law to provide that the rate of finance charge for a loan or credit sale of $1,000 or more shall be that which is agreed upon between the parties to the transaction; provides that for a loan or credit sale under $1,000, including loans or credit for deferred presentment of a check, the finance charge stated as an annual percentage rate shall not exceed 36 percent per year; and provides that fees and charges are considered interest and are subject to the 36 percent limitation.

Illinois

H.B. 560
Creates the Pay Day Loan Act, provides only a short title.

H.B. 963
Creates the Pay Day Loan Act, provides only a short title.

H.B. 2119
Creates the Pay Day Loan Act, provides only a short title.

H.B. 2189
Amends the Consumer Installment Loan Act in relation to payday loans, provides only a section caption.

H.B. 2704
Creates the Payday Loan Interest Cap Act. Provides that a financial institution that makes a short-term loan based on a borrower's paycheck and the use of a pre-dated personal check as collateral may charge no more than the prime interest rate for the loan. Amends the Financial Institutions Code to provide that the department of financial institutions has the power to establish rules for the regulation of the Payday Loan Interest Cap Act.

H.B. 2900
Creates the Short-term Loan Act. Provides for the regulation of entities that make payday loans and motor vehicle title loans. Applies to loans having a term of fewer than 93 days. Provides that loans may not exceed $1,000. Limits charges that may be imposed in connection with the loans. Requires lenders to obtain a license from the director of financial institutions. Amends the Financial Institutions Code to require the director of financial institutions to establish a complaint registry regarding licensees under the Short-term Loan Act. Amends the Consumer Fraud and Deceptive Business Practices Act to provide that three or more violations of the Short-term Loan Act constitute a violation of the Consumer Fraud and Deceptive Business Practices Act.

H.B. 3134
Creates the Payday Loan Act, provides only a short title.

H.B. 3607
Creates the Payday Loan Act, provides only a short title.

H.B. 3763
Creates the Payday Loan Act, provides only a short title.

S.B. 358
Amends the Financial Institutions Code. Requires the department of financial institutions to study payday loan practices with respect to charges imposed, borrower profiles, and problems resulting from those practices. Requires the department to report its findings and recommendations to the General Assembly by September 15, 1999.

S.B. 446
Amends the Consumer Installment Loan Act. Defines the term payday loan as a loan having a term of not more than 30 days made in a transaction whereby the lender receives a check in an amount that fully satisfies the debt postdated to the maturity date of the loan.

S.B. 1226
Amends the Consumer Installment Loan Act. Limits interest on payday loans to 49 percent per year.

S.B. 1506
Amends the Consumer Installment Loan Act. Provides that licensees under that Act may make payday loans only for amounts of $350 or less, may charge fees not exceeding $26 per loan, may impose interest at a rate not exceeding 15 percent per year, and may not renew or rollover a payday loan. Limits the term of a payday loan to a maximum of 30 days.

Indiana

H.B. 1258
Exempts transactions involving payday lenders from the requirement that the holder of a dishonored check be awarded: treble damages for a dishonored check with a face amount of $250 or less; and the face amount of the check plus $500 for a dishonored check with a face amount of more than $250.

S.B. 278
Defines a deferred presentment transaction as a transaction in which a person licensed by the department of financial institutions (licensee) cashes a customer's check without presenting the check for payment for up to 31 days. Provides that a deferred presentment transaction is not a loan. Limits the amount of fees and additional charges a licensee can require the maker of a check to pay. Requires a deferred presentment transaction to be in writing. Provides penalties to the customer in a deferred presentment transaction if the maker's account has insufficient funds, is closed, or there is a stop payment order on the check. Prohibits a customer from having more than four deferred presentment transactions totaling more than $500 at any one time. Prohibits a licensee from taking an assignment of earnings of the maker for payment or security for payment of a deferred presentment transaction.

Kansas

S.B. 272
Regulates providers of deferred deposit loans.

Kentucky

H.B. 73
Defines check cashing, to clarify that a deferred deposit transaction means accepting a postdated check, and defines postdated check; clarifies that check cashing businesses and deferred deposit service businesses have separate licenses; requires the department of financial institutions to promulgate administrative regulations and to conduct annual examinations of the business records of a licensee; establishes that a deferred deposit service business is subject to KRS Chapter 360, relating to interest and usury; requires deferred deposit service businesses to display interest rates.

Maryland

H.B. 1078
Requires persons who provide deferred presentment services in the state to be licensed by the commissioner of financial regulation; specifies requirements an applicant must satisfy to qualify for a license, including surety bond and fingerprinting requirements; requires and authorizes the commissioner to conduct examinations and investigations; authorizes a licensee to charge a fee not to exceed 12 percent of the amount paid by the licensee to the drawer of a check held for deferred presentment.

S.B. 460
Requires persons who provide deferred presentment services in the state to be licensed by the commissioner of financial regulation; specifies requirements an applicant must meet to qualify for a license; specifies the form and content of an application for a license; requires each application for a license to be accompanied by specified fees and documents; establishes procedures for granting or denying a license; provides that a license issued under the act is not transferable or assignable.

Massachusetts

S.B. 14
Regulates check cashing.

S.B. 48
Regulates check cashing privacy.

S.B. 59
Regulates check cashing privacy.

Michigan

H.B. 4808
Regulates the offering of deferred presentment services for issued checks; prescribes the powers and duties of certain state agencies; and provides for remedies and penalties.

H.B. 4953
Regulates check cashing businesses; provides for licensing and fees; prescribes the powers and duties of certain state agencies and officials; and provides for penalties.

Mississippi

H.B. 40
Repeals sections 75-67-501 through 75-67-539, which provide for the licensure and regulation of check cashers by the commissioner of banking and consumer finance.

Missouri

H.B. 1617
Regulates check-cashing businesses.

New York

A.B. 11472

Prohibits banking institutions from opening and operating electronic check cashing machines for the purpose of conducting the business of cashing checks, drafts or money orders without first obtaining a license to engage in such business.

North Carolina

S.B. 1137
Requires licensees to deposit checks after the checks have been cashed and clarifies the aggregate amount allowed for postdated or delayed deposit checks.

Oklahoma

H.B. 2674
Creates the Oklahoma Deferred Presentment Service Act.

Rhode Island

H.B. 5367
Amends the provisions of the general laws which regulate the business of check cashing by restricting the location of such business to no more than one within a two mile radius, and requires agents of check-cashing licensees be registered by the department of business regulation upon a payment of a $25.00 registration fee, and restricts the agent's functions to the location at which the license was issued. Increases the maximum fee which a check cashing licensee may charge.

H.B. 5889
Prohibits lottery sales agents from providing ATM, check cashing or cash advance services.

South Carolina

H.B. 3308
Relates to exemptions from regulation as a check-cashing service, both so as to exempt a grocery store and a drugstore, and to provide for refund of a licensing or investigation fee paid by a grocery store or a drugstore.

H.B. 3456
Amends § 34-11-60, relating to drawing and uttering a fraudulent check, draft, or other written order, so as to provide that § 34-11-60 does not apply to a check given to a deferred presentment service or a check cashing service; amends § 34-39-180, relating to regulation of deferred presentment services and § 34-41-60, relating to regulation of check cashing services, so as to provide that neither service may rely on the civil or criminal remedies for prosecuting or civilly enforcing payment of a fraudulent check.

H.B. 3515
Amends § 34-39-120 relating to definitions for purposes of deferred presentment services, so as to define "cash advance;" amends § 34-39-180 relating to restrictions on and requirements for deferred presentment of a check, so as to provide that the face amount of a check taken for deferred presentment or deposit, including the cash advance made to the customer and the fee imposed by the deferred presentment service, must not exceed $345; amends § 34-39-200 relating to limitations on activities of a deferred presentment licensee, so as to define a "money transmission service" for purposes of certain exemptions from the limitations; amends § 34-41-20, relating to license requirements for check cashing services, so as to require a separate license for each business location; amends § 34-41-30, relating to exemptions from check cashing services law, so as to redefine the exemption to allow retail sellers to charge up to $2, rather than no consideration, for cashing a check; amends § 34-41-40, relating to check cashing service license applications, so as to revise the investigation and license fees; amends § 34-41-60, relating to restrictions on and requirements for check cashing services, so as to delete the requirement of a written agreement; and amends § 34-41-80, relating to limitations on activities of a check cashing licensee, so as to define a "money transmission service" for purposes of certain exemptions from the limitations.

H.B. 4011
Amends § 34-39-140 relating to exemptions from regulation as a deferred presentment service, and § 34-41-30 relating to exemptions from regulation as a check-cashing service, both so as to exempt a retailer of sales or services who, incidental to the sales or services offered, cashes checks for no fee or for a nominal fee and to define "nominal fee."

H.B. 4940
Amends § 37-6-506 relating to the powers and duties of the commission on consumer affairs, so as to provide that the commission specifically develop a policy, and establish rules and regulations for enforcement of that policy, designed to protect consumers in this state from predatory lending practices of any kind, including check cashing and deferred presentment practices.

S.B. 363
Amends § 34-39-180 relating to deferred presentment services, so as to delete the provision which states that an individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty; and amends § 34-41-60 relating to check cashing services, so as to delete the requirement that each check cashing transaction must be documented by a written agreement.

S.B. 434
Amends § 34-39-120 relating to definitions relating to deferred presentment services, so as to define the term "cash advance;" amends § 34-39-180 relating to restrictions and requirements for deferred presentment of a check, so as to provide that the face amount of a check taken for deferred presentment or deposit, including the cash advance made to the customer and the fee imposed by the deferred presentment service, shall not exceed $345; amends § 34-39-200 relating to exemptions from the deferred presentment act, so as to revise certain exemptions; amends § 34-41-20 relating to license requirements for check cashing services, so as to require a separate license for each business location; amends § 34-41-30 relating to exemptions from check cashing service law, so as to redefine the exemption for retail sellers to allow up to $2, rather than no consideration; amends § 34-41-40 relating to check cashing service license applications, to revise the investigation and license fees; amends § 34-41-60 relating to restrictions and requirements for check cashing services, so as to delete the requirement of a written agreement; and amends § 34-41-80 relating to exemptions from the check cashing law, so as to revise certain exemptions.

S.B. 537
Amends § 34-39-180 relating to deferred presentment of checks, so as to require a 24 hour delay after a customer of a licensee pays in full a contract before that licensee may enter into another contract with that same customer.

Tennessee

H.B. 414
S.B. 49
Deletes 12:01 a.m. October 1, 1999, sunset provision in Section 22 of the Deferred Presentment Services Act. Amends Chapter 255 of the Public Acts of 1997.

Virginia

H.B. 1515
Continued to 2001 Session
Establishes the requirements for operation in the business of deferred presentment services, or payday lending. Defines "deferred presentment services" as a transaction pursuant to a written agreement between a licensee and the maker of a check whereby the licensee: accepts a check from the maker dated on the date it was written; agrees to hold the check for a period of time prior to negotiation or presentment; and pays to the maker of the check the amount of the check, less the permitted fee. Anyone engaging in the business of deferred presentment services must be licensed with the State Corporation Commission (SCC) by applying for license, paying a $1,000 license fee, and posting a $10,000 bond. The SCC is authorized to investigate the affairs, business premises and records of deferred presentment services licensees and promulgate regulations to enforce this chapter. Violators of the bill's provisions are subject to both civil and criminal penalties.

Washington

H.B. 2349
Revises RCW 31.45.073 relating to check cashers and sellers.

H.B. 3087
Provides that "check cashers" shall be redesignated as "legalized loan sharks."

H.B. 3088
Declares that every applicant for a license or endorsement under chapter 31.45 RCW made after the effective date of this act shall undergo a record check through the Washington state patrol criminal identification system under RCW 43.43.830 through 43.43.838, 10.97.030, and 10.97.050 and through the federal bureau of investigation. The record check shall include a fingerprint check using a complete Washington state criminal fingerprint identification card. The director shall recover the cost of the record check required under this provision from the licensee.

Wisconsin

A.B. 612
Creates additional notice requirements that specifically apply to payday loans. Before disbursing funds pursuant to a payday loan, the payday loan provider must provide the borrower with a notice that compares the cost of the payday loan if it is paid in full when due with the cost of the payday loan if it is paid in full after being refinanced eight times. Requires the payday loan provider to notify the borrower that a payday loan is not intended to meet long-term financial needs, that a payday loan should be used only in a financial emergency, that the borrower will be required to pay additional fees if the payday loan is not paid in full when due and that refinancing the payday loan, or entering into consecutive payday loans to pay an existing payday loan, may cause financial hardship. Requires the payday loan provider to notify the borrower that the borrower may cancel the payday loan at any time before receiving the loan funds and the payday loan provider must provide the borrower with materials, obtained from the department of financial institutions, that inform the borrower of the potential costs of entering into a payday loan and of other options for borrowing funds that may be available.