Payday Lending 2015 Legislation

Heather Morton 2/5/2016

Payday Loan Application FormPayday lending, or deferred presentment, features single-payment, short-term loans based on personal checks held for future deposit or on electronic access to personal checking accounts, and loan products designed to be an alternative to payday lending.

In the 2015 legislative session, 28 states addressed legislation regarding payday lending. California, Indiana, Missouri, Montana, Nevada, New Hampshire, New Mexico, North Dakota, Oregon and South Dakota enacted payday lending legislation.

PLEASE NOTE:  The summaries should be used for general informational purposes and not as a legal reference. NCSL is unable to provide assistance or guidance to citizens or businesses regarding payday loan laws and practices. If you have questions regarding the application of a state law to a specific payday loan, please contact the Office of the Attorney General in your state.

The box allows you to conduct a full text search or type the state name.

State: Bill Number: Bill Summary:
Payday Lending 2015 Legislation
Alabama

H.B. 417

Indefinitely postponed 6/3/15

This bill requires licensees to use a database designated by the supervisor to ensure that a customer does not have any deferred presentment transaction over $500.
Alabama

H.B. 531

Indefinitely postponed 6/3/15

This bill allows a customer to repay a deferred presentment transaction over a three-month period. This bill prohibits the extension of a deferred presentment transaction.

Alabama

S.B. 110

Indefinitely postponed 6/3/15

This bill expands the licensure requirement for people engaged in the business of deferred presentment services to include services offered by mail, telephone, Internet, mobile device application, or in person. This bill increases the nonrefundable license fee and provides that one half of the increase would be paid to the state Banking Department and one half to the General Fund. This bill provides that a person who attempts to evade the licensure requirement for the business of deferred presentment services would be guilty of a criminal offense and provides penalties. This bill further regulates the business of deferred presentment services by regulating the fees, interest, number of loans, term of a loan, finance charges, and repayment of a loan.

Alabama

S.B. 335

Indefinitely postponed 6/3/15

This bill allows a customer to repay a deferred presentment transaction over a six-month period. This bill prohibits the extension of a deferred presentment transaction.

Alabama S.B. 446

This bill increases the maximum amount that may be advanced in any deferred presentment transaction. This bill provides for a maximum fee that may be charged for each licensee accessing the statewide database. This bill establishes an account within the state treasury to be known as the Alabama Financial Education Endowment Fund to support statewide financial education and consumer credit building activities and programs.

Alaska None  
Arizona None  
Arkansas None  
California

A.B. 1341

Existing law authorizes the commissioner of Business Oversight to require certain financial service providers that are licensed and regulated by the Department of Business Oversight, including, among others, check sellers, proraters, escrow agents, finance lenders and brokers, residential mortgage lenders or servicers, and businesses making deferred deposit transactions, to pay their pro rata share of the costs and expenses of the department’s licensing and regulating activities. A violation of the licensing laws applicable to these financial service providers is a crime. This bill revises these provisions to require a licensee under the supervision of the department to pay to the commissioner its pro rata share of all costs and expenses in an amount sufficient, in the commissioner’s judgment, to meet the expenses of the department in administering the applicable licensing law for the next year that includes, but shall not be limited to, the cost of routine examinations and the provision of a reasonable reserve for contingencies, with a consideration of any deficit or less any surplus actually incurred in the prior fiscal year, as specified. The bill makes May 31 the uniform date for the commissioner to notify these licensees of the amount assessed for the next year, and generally give 30 days to all of these licensees to pay the assessment. The bill authorizes the commissioner, whenever he or she found it is necessary or advisable, to conduct a non-routine examination of, or to devote any extraordinary attention to, any licensee and charge and collect from that licensee the department’s expenses, including, but not limited to, hourly wages and travel costs, for doing so. The bill authorizes the commissioner to maintain an action for the recovery of these costs in any court of competent jurisdiction. This bill raises the minimum assessment for a licensee under the Check Sellers, Bill Payers and Proraters Law from $150 to $1,000, and the California Finance Lenders Law from $250 to $800. The bill modifies the minimum calculation of an assessment for a licensee under the Escrow Law based on $5,000 per main office and $3,500 per each branch location, and the California Residential Mortgage Lending Act, based on mortgages loan originated by the licensee.

California

S.B. 235

Signed by governor 10/5/15, Chapter 505

Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders by the commissioner of Business Oversight and makes a willful violation of its provisions a crime. Existing law establishes, until Jan. 1, 2018, the Pilot Program for Increased Access to Responsible Small Dollar Loans for the purpose of allowing greater access for responsible installment loans in principal amounts of at least $300 and less than $2,500 administered by the commissioner. Existing law authorizes a licensee in the program to use the services of finders, as defined, to bring licensees and prospective borrowers together, at the finder’s place of business, for the purpose of negotiating loan contracts, subject to a written agreement meeting specified requirements. This bill expands the services that a finder, licensed or regulated under prescribed provisions of law, is authorized to perform to include, among other things, disbursement of loan proceeds to, and receipt of loan payments from, the borrower. This bill requires the licensee to develop and implement policies and procedures designed to respond to questions raised by applicants and borrowers regarding their loans, including those involving finders. Existing law establishes a maximum finder’s fee of $45 per loan for the first 40 loans originated at the finder’s location per month, and $40 per loan for loans thereafter during that month. This bill deletes those maximums and authorizes payment of finder compensation for certain services pursuant to a schedule that is mutually agreed to by the licensee and the finder, not to exceed $65 per loan, plus $2 per payment received by the finder on behalf of the licensee for the duration of the loan when the finder receives borrower loan payments on the licensee’s behalf, as specified. The bill requires, if a loan applicant has questions that the finder is not permitted to answer, the finder to assist an applicant in making direct contact with the lender before the loan is consummated, and requires the licensee to ensure that a loan is not consummated until the licensee completes a two-way communication, as defined, with the applicant. The bill requires a licensee to provide the commissioner with prescribed information relating to each finder, including, but not limited to, the finder’s delinquency rate and default rate, and authorizes the commissioner to take prescribed action against a finder upon determination that it would be warranted by reported data, including, but not limited to, disqualifying the finder from providing services under the pilot program.

Colorado None  
Connecticut None  
Delaware None  
District of Columbia None  
Florida None  
Georgia None  
Guam Not available  
Hawaii

H.B. 228

S.B. 731

Reduces the maximum fee a check casher may charge under a payday loan agreement for deferring the deposit of a check from 15 percent to 7 percent of the face value of the check.

Hawaii H.B. 744

Places a cap on the interest that a check casher can charge pursuant to a deferred deposit agreement at 36 percent per annum.

Hawaii H.B. 752

Prohibits check cashers from offering deposit advance products to customers.

Hawaii H.B. 834

Requires the written agreement for the deferred deposit of checks to also state that all cumulative fees charged for deferred deposit transactions shall not exceed an annual percentage rate of 39 percent.

Hawaii

H.C.R. 133

H.R. 81

Requests the auditor to conduct a follow-up analysis of check cashing and deferred deposit agreements.

Hawaii

H.C.R. 209

H.R. 144

Authorizes the formation of a task force to study the issue of payday loans.

Hawaii

S.B. 737

To conference committee 4/20/15

Creates standards, including authorization for the Department of Commerce and Consumer Affairs to adopt rules, for check cashing businesses, including requirements for registration, surety, recordkeeping, examinations, and confidentiality. Sets new penalties for check cashing businesses that violate the established standards.

Hawaii S.C.R. 180

Requests the auditor to conduct a follow-up analysis to the Sunrise Analysis: Check Cashing and Deferred Deposit Agreements (Payday loans), Report No. 05-11.

Hawaii S.R. 115

Requests the auditor to conduct a follow-up analysis to the Sunrise Analysis: Check Cashing and Deferred Deposit Agreements (Payday loans), Report No. 05-11.

Idaho None  
Illinois H.B. 414

Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title.

Illinois H.B. 1278

Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title.

Illinois H.B. 1688

Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title.

Illinois H.B. 3263

Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title.

Illinois H.R. 688 Directs the State Universities Retirement System, the State Employees' Retirement System, the Judges' Retirement System, the General Assembly Retirement System, and the Teachers' Retirement System to review their investments and submit a report regarding any investment currently held in any entity that supports small-dollar lenders, payday loans, and predatory lenders; urges the State Universities Retirement System to divest from JLL Partners Fund V, LLC and any entity that supports small-dollar lenders, payday loans, and predatory lenders; urges the State Employees' Retirement System, the Judges' Retirement System, the General Assembly Retirement System, and the Teachers' Retirement System to divest from any entity that supports small-dollar lenders, payday loans, and predatory lenders; urges the State Universities Retirement System, the State Employees' Retirement System, the Judges' Retirement System, the General Assembly Retirement System, and the Teachers' Retirement System to develop policies and procedures to prevent investments from being made in small-dollar lenders, payday loan lenders, and predatory lenders.
Illinois S.B. 56

Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title.

Illinois S.B. 1757

Amends the Payday Loan Reform Act. Makes a technical change in a section concerning the short title.

Indiana

H.B. 1287

Signed by governor 5/5/15, Public Law 186

Makes various changes to the laws concerning: (1) first lien mortgage lenders; (2) persons licensed under the Uniform Consumer Credit Code; (3) rental purchase agreements; (4) debt management companies; (5) financial institutions; (6) pawnbrokers; (7) money transmitters; and (8) check cashers. Repeals a provision providing an alternative regular reserve formula for certain credit unions. Makes conforming amendments.

Iowa H.F. 598

Relates to delayed deposit services by requiring a delayed deposit repayment option.

Kansas H.B. 2334

The bill amends the Uniform Consumer Credit Code related to cash advance consumer loan requirements, as administered by the Office of the State Bank Commissioner. The bill makes the following changes: 1. A supervised lender could charge up to 15 percent for cash advances of up to $1,000. The current limit is $500; 2. The existing minimum term limit would be changed from seven days to no less than 60 days for any cash advance of less than $500 and no less than 120 days for an advance equal to or greater than $500; 3. Any lender would be restricted to one loan outstanding to the same borrower at any one time, and could not make more than three loans to any one borrower within a 60 calendar day period. The current time limit is 30 days; and, 4. Any consumer loan transaction would become due on the first day of the expiration of the minimum term. If the borrower no longer receives such compensation, the loan would become due seven days after the expiration of the minimum term.

Kentucky

S.B. 21

Withdrawn from consideration 1/8/15

Relates to deferred deposit transactions; defines annual percentage rate, consideration, and interest. Deletes the service fee and establish a tiered maximum annual percentage rate based on the face amount of the deferred deposit check. Provides that making a deferred deposit transaction in violation of the maximum interest provisions is an unfair, false, misleading and deceptive practice in violation of the Consumer Protection Act.

Kentucky S.B. 32

Amends KRS 286.9-010 to define "annual percentage rate," "consideration," and "interest"; amends KRS 286.9-100, relating to deferred deposit transactions, to delete the service fee of $15 per $100 loan and establish a tiered maximum annual percentage rate of 36 percent. Provide that making a deferred deposit transaction in violation of the maximum interest provisions is an unfair, false, misleading and deceptive practice in violation of the Consumer Protection Act and subject to its rights and remedies. Prohibits a licensee from engaging in deceptive practices to evade the requirements of Subtitle 9 of KRS Chapter 28. Creates a new section of Subtitle 9 of KRS Chapter 286 to provide that knowing violation of the maximum allowable interest rate provisions shall be deemed a forfeiture of the entire interest for the transaction and the person who paid the interest, or his or her legal representative, may recover twice the amount paid in any action against the lender if commenced within two years of the deferred deposit transaction.

Lousiana None  
Maine None  
Maryland None  
Massachusetts None  
Michigan H.B. 607

Allows the use of debit cards as method for repayment of a deferred presentment transaction.

Minnesota

H.F. 1545

S.F. 1815

Relates to financial institutions; regulates payday lending.

MIssissippi

H.B. 189

Died in committee 2/3/15

Amends §75-67-519 to prohibit check cashers from cashing a delayed deposit check for any person who has an outstanding delayed deposit check with another check casher that has not been repaid in full. Directs the commissioner of banking to provide for the development of a database in which check cashers must record each delayed deposit transaction to prevent violations of the maximum amount that may be outstanding; authorizes the commissioner to charge a fee to check cashers as necessary to maintain the database system. Provides that the maximum amount that check cashers may charge for cashing a delayed deposit check shall not exceed an annual percentage rate of 36 percent per annum on the face amount of the check.

Mississippi

H.B. 790

Died in committee 2/3/15

Amends §75-67-519 to require licensed check cashers to extend one check to cover the amount of the loan for all loans exceeding $100.

Mississippi

S.B. 2201

Died in committee 2/3/15

Amends §75-67-519 to clarify the term and maximum fee for multiple delayed deposit checks under the Mississippi Check Cashers Act.

Mississippi

S.B. 2572

Passed Senate 2/10/15

Amends §75-67-525 to provide that the reporting of an uncollected amount of a delayed deposit check by any person who engages in the business of check cashing without first securing a license shall constitute a per se violation of the federal Fair Credit Reporting Act.
Mississippi

S.B. 2741

Died in committee 2/3/15

The bill declares legislative intent to prohibit activities commonly referred to as payday lending, deferred presentment services, advance cash services and other similar activities. Provides that it shall be unlawful to engage in the business of making certain small loans. Provides criminal penalties therefor. Provides for collection of civil penalties in actions by the state or by private parties on behalf of the state. Declares the site or location of a place of business where payday lending takes place in the state of Mississippi as a public nuisance. Repeals §§75-67-401 through 75-67-449, which create the Mississippi Title Pledge Act. Repeals §§75-67-501 through 75-67-539, which create the Mississippi Check Cashers Act.

Missouri H.B. 91

This bill changes the laws regarding unsecured loans of $500 or less, commonly known as payday loans. In its main provisions, the bill: (1) Specifies that the provisions regarding payday loans apply to unsecured loans of $750 or less. Currently, they apply to unsecured loans of $500 or less; (2) Allows a lender to renew a loan twice, instead of the current six times; (3) Prohibits a borrower from having more than $750 in outstanding loans at one time; (4) Prohibits a lender from making a loan to a borrower if the loan would cause the borrower to have more than one unsecured loan or from making a loan to a borrower within one day of the borrower paying or otherwise satisfying in full a previous payday loan; (5) Requires a lender to disclose to a borrower at the time of signing a loan the duration of the loan, amount and date of payments due, and amount of interest and fees to be charged throughout the duration of the loan; (6) Specifies that a lender's sole and exclusive remedy against a borrower who delivers a check, draft, or order that is not honored for payment on a loan will be a breach of contract claim and that a lender is barred from bringing a civil action for passing a bad check; and (7) Requires the Division of Finance within the Department of Insurance, Financial Institutions and Professional Registration to develop and administer a real-time statewide compliance system for licensed payday lenders to record each payday loan transaction.

Missouri

H.B. 587

Signed by governor 6/22/15

This bill increases specified fees paid to the director of the Division of Finance within the Department of Insurance, Financial Institutions and Professional Registration. These increases include: (1) The investigation fee that must be submitted with an application to obtain or renew a license to issue checks in this state from $100 to $300; (2) The fee that may be assessed for amending and reissuing an existing license to issue checks in this state is changed from up to $100 to up to $300; (3) The annual license fee for an individual to engage in the business of a financing institution from $300 for each place of business to $500 for each place of business; (4) The annual registration fee in order to engage in the business of a premium finance company from $300 to $500. Any revised statement of a registration form must be accompanied by a fee of $300 instead of the current $100; (5) The annual registration fee for a lender of small loans from $300 to $500; (6) The fee that must accompany a registration statement for a credit service organization from not to exceed $100 to not to exceed $300; and (7) The annual license fee for a lender of unsecured loans of $500 or less from $300 per location to $500 per location.

Missouri H.B. 820

This bill changes the laws regarding consumer credit interest rates. In its main provisions, the bill: (1) Requires any person making or offering a consumer credit loan to contract for and receive interest and fees in accordance with §§408.100, 408.140, and 408.170, RSMo, relating to small loans (§367.105); (2) Specifies that it is the intention of the people of Missouri to prevent lenders of payday loans, car title loans, and installment loans from charging excessive fees and interest rates that can lead families into a cycle of debt by: (a) Reducing the annual percentage rate for payday, title, installment, and other high-cost consumer credit and small loans from triple-digit interest rates to 36 percent per year; (b) Extending to veterans and others the same 36 percent rate limit in place for payday and title loans to active military families as enacted by the 109th United States Congress in 10 U.S.C. §987; and (c) Preserving fair lending by prohibiting lenders from structuring other transactions to avoid the rate limit through subterfuge (§408.100); (3) Prohibits any lender of small loans, subject to §408.100, from charging interest, fees, and finance charges at an annual percentage rate greater than 36 percent (§408.100); and (4) Prohibits a person from engaging in any device or subterfuge intended to evade the requirements of Chapter 408, relating to legal tender and interest, through any method including, but not limited to, mail, telephone, Internet, or any electronic means (§408.100). The bill contains a referendum clause and will be submitted to qualified voters in November 2016.

Missouri S.B. 187

This act creates the Small Loan Community Reinvestment Program to distribute grants to nonprofits dedicated to community reinvestment in educational tutoring and development, financial literacy, early childhood development, youth mentoring, and senior services. The grants shall be used in geographic areas containing the highest concentration of payday and title loan lenders in the state as determined by the division of finance. The grants shall consist of moneys collected as a $1 surcharge on every payday and title loan that shall be deposited in the newly created Small Loan Community Reinvestment Fund. The director of the division of finance shall administer the program. The act also makes modifications to the law regulating payday lenders. Currently, such lenders may renew payday loans six times. This act bars renewals. Currently, lenders may charge simple interest and fees up to 75 percent of the initial loan amount. This act does not allow lenders to charge interest. Only fees may be charged. Lenders shall not make more than one loan to a borrower at a time and shall wait one business day before making another loan to a borrower who has just paid a previous loan. Currently, payday loans have a minimum term of 14 days and a maximum term of 31 days. This act repeals that provision and allows the borrower to choose a loan with a 30, 60 or 90 day duration. Loan renewals are no longer allowed. Borrowers are required to make two installment payments within each 30 day period. Fees shall be prorated and paid back to the borrower when the borrower prepays the loan and all fees shall be returned to the borrower when the borrower repays the loan at the end of the lender's next full business day.

Missouri

S.B. 345

Vetoed by governor 7/7/15

Vetoed overridden 9/16/15

Currently, lenders of unsecured loans of $500 or less must obtain a license from the director of Finance and pay an annual license fee of $300 per location. This act changes that to a $500 fee per location.

Montana

S.B. 75

Signed by governor 2/17/15, Chapter 23

The bill generally revises non-depository lending laws; clarifies procedural due process for both deferred deposit lenders under title 31 and consumer lenders under title 32; clarifies the service of process by certified mail; clarifies that only a respondent to a complaint is entitled to a contested case hearing; increases the time for persons to exercise certain legal rights; provides the department with access to lenders' records maintained out of state; allows an insufficient funds fee for dishonored forms of payment other than checks on consumer loans; eliminates a criminal penalty for violations of the Montana Deferred Deposit Loan Act.

Nebraska L.B. 233

The purpose of this resolution is to study payday loans and other short-term lending practices where high interest rates are charged and collected from customers. The issues examined in this study shall include, but not be limited to: (1) What efforts have been undertaken in other states to address similar practices in which higher-than-average interest rates were charged to customers; (2) How these lending practices may affect a segment of Nebraska's population that is vulnerable to such practices; (3) A review of payday lending statutes in other states and their effect on the practice of payday lending; and (4) A review of Nebraska statutes to determine if changes are necessary to address such lending practices.

Nevada A.B. 318

Provides that any deferred deposit loan, high-interest loan, refund anticipation loan or title loan made to a current or former member of the military must conform to the requirements of the federal Military Lending Act.

Nevada

S.B. 242

Signed by governor 5/27/15, Chapter 241

This bill enacts the Payday Lender Best Practices Act, which adopts certain provisions of the Community Financial Services Association of America’s Best Practices for the Payday Loan Industry and makes those provisions applicable to persons providing deferred deposit loan services, high-interest loan services and title loan services.

New Hampshire

H.B. 644

Signed by governor 6/2/15, Chapter 73

This bill makes certain changes to the regulation of small loans, title loans, and payday loans.

New Jersey None

 

New Mexico H.B. 24

This bill enacts new sections of the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955; imposes a cap on interest rates; voids contracts that exceed the interest rate cap; repeals a section of the New Mexico Small Loan Act of 1955.

New Mexico H.B. 36

The bill enacts new sections of the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955; imposes a cap on interest rates; repeals a section of the New Mexico Small Loan Act of 1955.

New Mexico

H.M. 131

Adopted 3/21/15

Requests the Legislative Finance Committee to examine the consumer lending industry in New Mexico and convene a task force during the 2015 interim to consider the further regulation of consumer lending practices.

New Mexico S.B. 72

The bill enacts new sections of the New Mexico Bank Installment Loan Act of 1959 and the New Mexico Small Loan Act of 1955; imposes a cap on interest rates; voids contracts that exceed the interest rate cap; repeals a section of the New Mexico Small Loan Act of 1955.

New York

A.B. 5980

Passed Assembly 6/15/15

S.B. 575

Requires a study and report on banking products and services offered in low income communities and the impact of traditional banks, credit unions and check casher services serving low income communities.

New York S.B. 4458

Prohibits foreign banking corporations from issuing payday loans; defines payday loans as any transaction in which a short-term cash advance is made to a consumer in exchange for (i) a consumer's personal check or share draft, in the amount of an advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or (ii) a consumer's authorization to debit the consumer's transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.

North Carolina None  
North Dakota

H.B. 1101

Signed by governor 4/22/15

Creates and enacts §§13-04.1-18, 13-08-16, and 13-11-31, relating to the customer information of money brokers, deferred presentment service providers, and debt-settlement providers; amends and reenacts §§13-04.1-01.1, 13-04.1-02.1, 13-04.1-04, 13-04.1-09, 13-04.1-15, 13-05-04, and 13-05-05.1, subsection 13 of §13-09-02, §§13-09-03 and 13-09-07.1, and subsections 1 and 2 of §13-10-03, relating to money brokers, collection agencies, money transmitters, and mortgage loan originators.

N. Mariana Islands Not available  
Ohio None  
Oklahoma None  
Oregon

S.B. 278

Signed by governor 6/18/15, Chapter 490

Voids payday loan, title loan, or consumer finance loan of a certain amount of money; prohibits unlicensed person, or person's successor, assignee or affiliate, from depositing borrower's or consumer's check, withdrawing moneys from borrower's or consumer's account, or otherwise collecting, receiving or retaining principal, interest, fee or charge related to or in connection with payday loan, title loan or consumer finance loan of a certain amount of money.

Pennsylvania None  
Puerto Rico None  
Rhode Island H.B. 5483

This bill reduces the amount a check cashing business can charge for deferred deposit transaction fees from 10 percent to 5 percent of the funds advanced.

Rhode Island H.B. 5553

This bill repeals the provisions of the general laws allowing deferred deposit providers, also known as "payday lenders."

Rhode Island H.B. 5793

This bill repeals the provisions of the general laws allowing deferred deposit providers, also known as "payday lenders."

Rhode Island H.B. 6014

This bill reduces the check-cashing fees for deferred deposit transactions from 10 percent, to 9.23 percent, with an annual percentage rate not to exceed 240 percent.

Rhode Island S.B. 151

This bill amends the financial institutions statute to separate "check cashing" and "payday lending" licenses into separate license categories.

Rhode Island S.B. 296

This bill repeals the provisions of the general laws allowing deferred deposit providers, also known as "payday lenders."

South Carolina S.B. 217

Amends §34-39-180(e), relating to restrictions and requirements for deferred presentment or deposit of checks, to provide that the effective annual percentage rate charged on a deferred presentment transaction cannot exceed 36 percent.

South Carolina S.B. 218

Amends Chapter 5, Title 39, relating to the South Carolina Unfair Trade Practices Act, provides that a person who accepts a check for a deferred presentment transaction violates the South Carolina Unfair Trade Practices Act, and repeals Chapter 39, Title 34 relating to deferred presentment services.

South Dakota None  
Tennessee

H.B. 317

S.B. 496

Prohibits any short-term lender from assessing an interest rate for any short-term lending transaction that exceeds 28 percent per annum. Authorizes the commissioner of financial institutions to determine appropriate civil penalties.

Texas H.B. 371

Relates to certain extensions of consumer credit facilitated by a credit access business for certain military personnel or their dependents.

Texas

H.B. 411

Passed House 5/6/15

The bill specifies that the Texas Telemarketing Disclosure and Privacy Act applies to a credit access business licensed under Finance Code, ch. 393, subch. G. The bill prohibits a credit access business or its representatives from making a telemarketing call, as defined by the act, to a consumer, regardless of whether the consumer was listed on the Texas no-call list maintained under Business and Commerce Code, ch. 304, subch. B.

Texas

H.B. 1020

S.B. 121

Relates to credit services organizations and extensions of consumer credit facilitated by credit services organizations; creates a deferred presentment transaction database; provides civil and administrative penalties.

Texas H.B. 2166

Relates to certain extensions of consumer credit facilitated by credit access businesses; providing a civil penalty.

Texas H.B. 2803

Relates to notice requirements for licensed lenders of deferred presentment transactions and motor vehicle certificate of title loans; adds a provision subject to a criminal penalty.

Texas H.B. 3047

Relates to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increases a criminal penalty.

Texas H.B. 3811

Relates to extensions of consumer credit in the form of a deferred presentment transaction that a credit access business obtains for a consumer or assists a consumer in obtaining; provides a civil penalty; adds a provision subject to a criminal penalty.

Texas H.B. 3824

Relates to the regulation of certain short-term consumer loans; imposes an assessment and fees; adds provisions subject to a criminal penalty; requires an occupational license.

Texas H.B. 4073

Relates to the acceptance of certain documentation from consumers by certain credit services organizations and the reporting requirements for those organizations; adds a provision subject to a criminal penalty.

Texas S.B. 91

Relates to a restriction on charges charged for certain extensions of consumer credit that a credit access business obtains for a consumer or assists a consumer in obtaining.

Texas S.B. 92

This legislation limits payday loans (single and multiple payments) to 20 percent of borrower's gross monthly income, limit auto title loans (single and multiple payments) to the lesser of three percent of the borrower's gross annual income or 70 percent of the vehicle value, limits total loan payments to four payments, and requires an amount from each installment or renewal reduce the loan principal by 25 percent.

Texas

S.B. 1650

Passed Senate 5/11/15

Relates to credit services organizations and extensions of consumer credit, including extensions of consumer credit facilitated by credit services organizations.

Utah

H.B. 144

Enacting clause struck 3/12/15

This bill modifies the Check Cashing and Deferred Deposit Lending Registration Act to address deferred deposit loans. This bill: modifies definition provisions; addresses reporting requirements for deferred deposit lenders; imposes requirements related to querying the database to determine ineligibility to receive a deferred deposit loan; imposes requirements related to the commissioner's annual report; establishes what constitutes ineligibility to obtain a deferred deposit loan; creates the Deferred Deposit Lending Database Program, which includes the creation of the Deferred Deposit Lending Database; permits the department to contract with a third party to establish and maintain the database; addresses various requirements related to the operation of the database; grants rulemaking authority; provides for the process to make a query to the database, including the payment of a fee; and makes technical and conforming amendments.

Vermont None  
Virginia

H.B. 1973

Tabled 1/27/15

Provides that a locality may by ordinance reasonably limit the number of motor vehicle title loan businesses, payday lenders, check cashers, and precious metals dealers that may be operated at any one time within its territorial limits. The ordinance may limit the number of such establishments based on a specific number of businesses per magisterial or election district or by limiting the number of such businesses within an established radius.

Virginia

H.B. 1976

Tabled 1/27/15

Provides that the City of Petersburg may by ordinance reasonably limit the number of motor vehicle title loan businesses, payday lenders, check cashers, and precious metals dealers that may be operated at any one time within its territorial limits. The ordinance may limit the number of such establishments based on a specific number of businesses per election district or by limiting the number of such businesses within an established radius.

Virginia

H.B. 1989

Passed by indefinitely 1/27/15

Caps the rate of interest that may be charged on motor vehicle title loans, payday loans, and open-end credit plans at 36 percent per year. The bill also prohibits a lender from charging a membership fee, participation fee, or transaction fee in connection with any such extension of credit.

Virginia

H.B. 1990

Passed by indefinitely 1/27/15

Prohibits any person from engaging in the business of making payday loans to any consumer residing in the commonwealth.

Virginia

H.B. 2191

Tabled 1/27/15

Prohibits the State Corporation Commission (SCC) from issuing a license for the operation of a payday lending office or motor vehicle title lending office if such office is within 10 miles of a casino facility or military installation. Casino facilities include Indian gaming operations conducted pursuant to the federal Indian Gaming Regulatory Act. The measure includes limitations on the SCC's authority to revoke or suspend an existing license when a violation of the 10-mile provision exists on July 1, 2015, or when a violation would be created by the opening of a casino facility or military installation after a license was issued. However, if such a licensed lending location is within 10 miles of an existing or future casino facility or military installation, the annual percentage rate that may be charged on loans made from such location is 36 percent.

Virginia S.B. 890

Allows a local zoning ordinance to include reasonable limits on the number of motor vehicle title loan businesses and payday lenders that may be operated at any one time within a zoning district.

Virginia S.B. 945

Removes provisions of the Payday Loan Act that authorize lenders to charge a loan fee or verification fee, thereby limiting permissible charges on payday loans to interest at a maximum annual rate of 36 percent.

Virgin Islands Not available  
Washington

H.B. 1922

S.B. 5899

Passed Senate 3/10/15

Creates a new small consumer installment loan regulated by the Department of Financial Institutions (DFI). Permits a loan of up to $1,000 for a minimum of six months and a maximum of 12 months. Allows an origination fee of 15 percent of the loaned amount, amortized over the life of the loan. Allows an interest rate of 36 percent per annum. Allows a maintenance fee of 7.5 percent of the total loaned amount per month with a maximum fee of $60 a month. Provides for a repayment plan prior to any civil action upon a loan in default. Makes military borrowers ineligible for a small consumer installment loan. Creates prohibited practices for licensees. Eliminates traditional payday loan product. Exempts the late fee and monthly maintenance fees from annual adjustment for inflation.

Washington S.B. 5613

Changes the total number of small loans a borrower may have from eight to 16 in a 12-month period.

West Virginia None  
Wisconsin None  
Wyoming None  

 

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Heather Morton is a program principal in NCSL's Fiscal Affairs Program. She covers financial services, alcohol production and sales, and medical malpractice issues for NCSL..

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