Summary Payday Lending 2019 Legislation

This bill requires the term of a deferred presentment transaction to be a minimum of 30 calendar days.

This bill requires the term of a deferred presentment transaction to be a minimum of 30 calendar days.

HB 469
Died on calendar 5/3/19
SB 874
Died in messages 5/3/19

Establishes Access to Responsible Credit Pilot Program within the Office of Financial Regulation, authorizes program licensees to make small loans; provides requirements for program license applications, program licensee's branch offices, access partners, borrowers, loans, and interest rates; provides for future repeal of program; provides appropriation.

HB 79
SB 537
To conference committee 4/17/19

Transitions from lump sum deferred deposit transactions to installment-based small dollar loan transactions. Specifies various consumer protection requirements for small dollar loans. Beginning Jan. 1, 2020, requires licensure for small dollar lenders that offer small dollar loans to consumers. Specifies licensing requirements for small dollar lenders. Authorizes the division of financial institutions to appoint 2.0 FTE examiner positions, funded via the compliance resolution fund, to carry out the purposes of the small dollar installment loan program. Requires check cashers to be registered with DCCA and to offer a voluntary payment plan to customers under certain circumstances. Establishes the terms of voluntary payment plans. Clarifies that a customer may only have one outstanding deferred deposit transaction from any source. Amends notices to customers required of check cashers. Removes the exemption for persons engaged in the bona fide retail sale of goods or services. Requires the auditor to conduct a sunrise analysis of the regulation of payday lenders and deferred deposit agreements in the state.

HB 332
Passed House 3/1/19
SB 613

Requires check cashers to be registered with DCCA and to offer a voluntary payment plan to customers under certain circumstances. Establishes the terms of voluntary payment plans. Clarifies that a customer may only have one outstanding deferred deposit transaction from any source. Amends notices to customers required of check cashers. Removes the exemption for persons engaged in the bona fide retail sale of goods or services. Requires the auditor to conduct a sunrise analysis of the regulation of payday lenders and deferred deposit agreements in the state.

Restricts the fees a check casher may charge in connection with a deferred deposit agreement to an annual percentage rate not to exceed 36% per year. Establishes a licensing scheme for check cashers that enter into deferred deposit agreements.

HCR 134
HR 124
SCR 195
SR 158

Requests the auditor to conduct a follow up analysis to check cashing and deferred deposit agreements, or payday loans.

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

Establishes licensure and licensure renewal requirements for certain persons or entities to engage in the business of cashing checks for a fee to persons in the state.

Requires check cashers to register with the department of commerce and consumer affairs. Requires check cashers to offer customers the option to participate in a payment plan, if certain conditions are met. Requires posting of certain information and written notice containing specific information to be provided to customers. mends the limit, deposit deferral, and fees charged for deferred deposit transactions.  Removes the exemption for entities engaged in the retail sale of good or services that periodically cash items for a fee.

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

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

Amends the Payday Loan Reform Act. Limits interest on payday loans to an annual percentage rate of 36%.

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

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

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

Changes the current incremental finance charge limits that apply to a small loan to a maximum annual rate. Prohibits certain acts with respect to financing of a small loan and makes a violation a deceptive act and subject to penalties.

Changes the current incremental finance charge limits that apply to a small loan to a maximum annual rate. Prohibits certain acts with respect to financing of a small loan and makes a violation a deceptive act and subject to penalties.

SB 104
Failed to pass Senate 2/26/19

Changes the current incremental finance charge limits that apply to a small loan to a maximum annual rate. Prohibits making, or taking other actions with respect to, a small loan with a greater rate or amount of interest, or other fees and charges, than allowed under the statute governing small loans. Prohibits a credit services organization from providing certain functions with respect to a small loan and makes a violation a deceptive act.

Relates to delayed deposit services by limiting the annual percentage rate for fees and requiring a delayed deposit repayment option in certain circumstances; makes penalties applicable.

Relates to delayed deposit services; limits the annual percentage rate for fees; requires a delayed deposit repayment option in certain circumstances; makes penalties applicable.

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%; 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 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 286; 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; cite as the Responsible Payday Lending Act.

SB 145
Signed by governor 3/19/19, Act 34

Amends KRS 286.9-010 to create distinct licenses for check cashing and for deferred deposit service business; make technical corrections; creates a new section of Subtitle 9 of KRS Chapter 286 to allow the commissioner to require certain actions by licensees be filed with the State Regulatory Registry.

Amends and reenacts R.S. 9:3578.3(3) through (6), 3578.4(A)(1), 3578.5, and 3578.6(A)(7) and enacts R.S. 9:3537, 3578.3(7), and 3578.6(A)(9) and (C), relative to consumer credit transactions; prohibits preliminary check holding; provides for definitions; modifies relative to refunds and deferred presentment transactions or small loans; provides modifications relative to creditor provisions and chargeable interest; provides for creditor and transactional prohibitions; and provides for related matters.

Clarifies the jurisdiction of the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection to regulate transactions entered into by mail, telephone or electronic mail or using a creditor's website when the consumer is located in Maine.

Prohibits service fees deferred presentment transactions greater than 36% annual.

Amends the Deferred Presentment Service Transactions Act to allow the authorized licensed providers of deferred presentment service transactions (commonly called payday lenders) to make certain small loans to their customers. The bill would further allow lenders to offer small loans with a principal amount of $2,500 or less to their customers. Specifically, a small loan made under the bill would have to meet the following requirements: The loan is made to one or more individuals for personal, family, or household use (i.e., is a personal loan). The principal amount of the loan does not exceed $2,500. The maturity date for the loan is not less than 90 days after the date of the transaction. The loan is unsecured and payable in installments.

Amends the Deferred Presentment Service Transactions Act to require the director of the Department of Insurance and Financial Services (DIFS) to submit a report on deferred presentment service transactions (i.e., payday loans) to the House and Senate committees concerned with banking and financial services. The report would have be submitted within 90 days after the bill took effect and would have to include the following information: The number of persons engaged in the business of providing deferred presentment service transactions in Michigan on June 30, 2007, and the number of such persons on the last day of the calendar month in which the bill took effect. A general report on the business of providing deferred presentment service transactions in Michigan as of the last day of the calendar month in which the bill took effect. This report would have to include information about the number of licensees, the number of customers, and the number and amount of transactions, reported in the following format: A summary of the deferred presentment service transaction program fees received by DIFS. Statewide statistics concerning transaction volumes by month, transaction amounts, fees, and averages, active license locations, the total number of customers of providers, consumer usage of deferred presentment service transactions, and consumer usage of repayment plans. Statistics, reported by zip code, concerning provider locations, identification of the county in which the zip code is located, transaction volumes, total amount of advances, total fees for advances, average advance amounts, average advance fees, and the total number of licensee locations. The number of complaints filed with DIFS against licensees in the period from Nov. 28, 2005, to the last day of the calendar month in which the bill took effect.

HB 1501
SB 1648

Relates to financial institutions; regulates interest rates for consumer short-term and small loans.

SB 2319
Died in committee 2/5/19

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 creates the Mississippi Title Pledge Act; repeals §§75-67-501 through 75-67-539, which create the Mississippi Check Cashers Act; and for related purposes.

This bill changes the laws regarding consumer credit interest rates. The bill requires that 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. The bill also reduces the annual percentage rate for payday, title, installment, and other high-cost consumer credit and small loans from triple-digit interest rates to 36% per year, including for veterans and active-duty military families, as required under federal law. A person may not engage in any 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 The bill contains a referendum clause and will be submitted to qualified voters in November 2020.

This bill modifies the law relating to unsecured loans of $500 or less, commonly referred to as payday loans. Currently, the number of loan renewals is six times. This bill lowers the number of renewals to two. The bill also allows a lender to decline to renew a loan. Borrowers may pay outstanding loans by means of an extended payment plan (EPP) with the following conditions: (1) A borrower is not eligible to enter into more than one EPP in any 12-month period with an individual lender; (2) A borrower must sign a written agreement to repay the amount owed in four or less equal installments over 60 or less days if the borrower receives bi-monthly paychecks or over 120 or less days if the borrower receives monthly paychecks; (3) Interest does not accrue on the loan during the EPP and the borrower may prepay an EPP in full at any time without penalty; (4) If the borrower fails to pay the amount due under the EPP, the lender can immediately accelerate the unpaid balance; (5) If a borrower enters into an EPP, the lender cannot make another loan to the borrower until the loan is re-paid in full; (6) The lender must post a notice in the lobby that the borrower can use an EPP; and (7) The borrower must enter into the EPP by the close of business on the day before the due date of the loan. If a borrower fails to pay off the loan, the lender cannot charge additional fees or interest on the outstanding loan. A lender must provide a borrower with a notice of the borrower's right to contact the Division of Finance regarding the lender, along with contact information for the division. Currently, the total amount of accumulated interest and fees are limited to 75%. This bill reduces that amount to 35%. Lenders are required to comply with the Fair Debt Collection Practices Act regarding harassment or abuse, false or misleading misrepresentations, and unfair practices when collecting on a payday loan.

This bill prohibits lenders of consumer credit loans, title loans, consumer installment loans, and unsecured loans of $500 or less (commonly called payday loans) from charging interest, fees, and finance charges in excess of 36% of the unpaid balance of the loan. Lenders are prohibited from evading statutory requirements through any method, including but not limited to mail, telephone, internet, or any electronic means. This bill contains a referendum clause.

This bill modifies provisions of unsecured loans of $500 or less, commonly known as payday loans. This bill clarifies that the costs associated with a returned check are not included in the requirements regarding fees or charges. The bill requires that a payday lender post the fee, in terms of dollars charged per $100 loans, be posted conspicuously in the lobby. This bill prohibits a payday lender from renewing or extending a payday loan, except a consumer can use an extended payment plan (EPP) to pay off the remaining balance of a loan. A borrower cannot enter into more than one EPP in any 12-month period with any one individual lender and a lender cannot make another loan to the borrower until the borrower pays the balance of the loan under the terms of the EPP. The EPP must be in a written and signed document. The payment plan must be in four or fewer equal installments over 60 days or less, if the borrower receives bimonthly paychecks; or four or fewer equal installments over 120 days or less, if the borrower receives monthly paychecks. Interest cannot accrue during the term of the EPP. The EPP can be paid in full at any time without penalty during the EPP. If the borrower fails to pay the amount owned under the EPP, then the lender can immediately accelerate the unpaid loan balance. If the borrower fails to make full payment upon the expiration of the loan or of the EPP, the lender cannot charge any additional fees or interest on the outstanding loan. Any payday lender that offers payday loans to Missouri residents through the internet must be licensed in Missouri and comply with Missouri law. Payday lenders must inform consumers of the intended use of payday loans and include the information on all marketing materials. A payday lender cannot make a payday loan without making a reasonable determination that the consumer will have the ability to repay the loan. For a line of credit loan, a lender cannot give the borrower the ability to obtain an advance more than 90 days after the lender has made a determination of the borrower's ability to pay. To make a reasonable determination of a borrower's ability to repay, the lender must obtain a written statement from the consumer regarding the consumer's income and debts, and obtain verification evidence if necessary. Currently, a payday loan's interest and fees cannot be more than 75% of the initial loan. This bill specifies that a payday loan's interest and fees cannot be more than 35% of the loan amount. A payday lender cannot threaten or cause criminal proceedings to be instigated against a borrower if a check given as security for a loan is dishonored. A lender that violates this prohibition must pay the borrower three times the amount of the dishonored check. However, this provision does not apply if the borrower's account was closed by the borrower or if the borrower stopped payment on the check. In collecting or attempting to collect a payday loan, a lender must comply with the Fair Debt Collection Practices Act. Currently, the Division of Finance must submit a report to the General Assembly every other year. This bill requires the report to be submitted annually.

This act prohibits lenders of consumer credit loans, title loans, consumer installment loans, and unsecured loans of $500 or less, commonly known as payday loans, from contracting for or receiving interest, fees, and finance charges on the unpaid principal balance of a loan in excess of 36%. Such lenders are prohibited from evading the requirements of this act through any method, including but not limited to mail, telephone, internet, or any electronic means. Such lenders are further subjected to several provisions of current law regulating interest on small loans. This act contains a referendum clause.

Adopts the Unsecured Consumer Loan Licensing Act and clarify licensing provisions under the Delayed Deposit Services Licensing Act and the state's Installment Loan Act.

Changes provisions under the Delayed Deposit Services Licensing Act and the State Installment Loan Act.

This bill prohibits the making of certain types of loans and entering into certain other transactions in which the annual percentage rate charged is more than 36 percent. Sections 2-11 of this bill establish provisions relating to transactions in which a person provides a consumer who is a party to a pending legal action in this state with money and the consumer confers to that person the right to receive the proceeds or a part of the proceeds of the settlement, insurance payment, award of damages or any other money expected as a result of the consumer's legal action. Section 8 of this bill designates this type of transaction as a “presettlement funding transaction.” Section 11 of this bill: (1) prohibits a presettlement funding provider from entering into a presettlement funding transaction with a consumer if the annual percentage rate charged is more than 36%; and (2) provides that a presettlement funding contract entered into in violation of that section is void. Existing law establishes standards and procedures for the licensing and regulation of certain short-term loans, commonly referred to as “payday loans,” high-interest loans and title loans. (Chapter 604A of NRS) Under existing law, a “high-interest loan” is defined as any loan which charges an annual percentage rate of more than 40%. (NRS 604A.0703) Section 12 of this bill prohibits a person who is licensed under chapter 604A of NRS from making a loan which charges an annual percentage rate of more than 36%. Sections 13-32 and 34 of this bill remove references in existing law to high-interest loans which charge an annual percentage rate of more than 40%.

AB 360
Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed 4/30/19

Existing law establishes standards and procedures governing the making of certain short-term loans commonly known as “high-interest loans,” which, under their original terms, charge an annual percentage rate of more than 40%. (Chapter 604A of NRS) Existing law prohibits the original term of a high interest loan from exceeding 35 or, alternatively, 90 days, depending on the terms of the loan. (NRS 604A.5037) This bill authorizes and establishes standards and procedures which are substantially similar to the provisions of existing law governing high-interest loans and which govern the making of traditional installment loans, which are loans that: (1) charge an annual percentage rate of more than 40%; (2) are for more than $300 and less than $2,000; (3) are fully amortized; (4) require a payment from the customer at least once every 30 days; (5) are not a deferred deposit loan; (6) do not require a balloon payment; and (7) have an original term of not less than six months and not more than 37 months. This bill also establishes standards and procedures for the issuance of a license governing persons who provide traditional installment loan services which are substantially similar to the provisions of existing law governing high-interest loans. Section 105 of this bill provides that a person who, on July 1, 2019, holds a valid license issued pursuant to existing law governing high-interest loans is deemed to hold a license to issue traditional installment loans.

SB 201
Signed by governor 5/28/19, Chapter 177

Existing law establishes standards and procedures governing the licensing and regulation of certain short-term loans, commonly referred to as “payday loans,” high-interest loans, title loans and installment loans. (Chapters 604A and 675 of NRS) The federal Military Lending Act imposes limitations on the terms of consumer credit that is extended to members of the armed forces of the United States who are on active duty and their dependents, including, without limitation, a prohibition against a lender charging an interest rate greater than 36%. (10 U.S.C. § 987) Existing law adopts the provisions of the federal Military Lending Act by referring to the federal law creating the Act. (NRS 99.050, 604A.411, 675.292) Sections 15 and 24 of this bill eliminate these provisions and, instead, sections 2-7, 15 and 17-21 of this bill adopt the language of certain provisions of the Military Lending Act, including language: (1) prohibiting a lender from charging an annual percentage rate greater than the lesser of 36% or the maximum rate provided in the federal Military Lending Act or the regulations adopted pursuant thereto to a covered service member or a dependent of a covered service member; (2) requiring a lender to make certain disclosures before extending certain consumer credit to a covered service member or a dependent of a covered service member; and (3) prohibiting certain additional loan terms in a transaction with a covered service member or a dependent of a covered service member. Sections 11 and 22 of this bill require the commissioner to adopt regulations to administer, carry out and enforce these provisions. Section 8 of this bill requires the commissioner of Financial Institutions to develop, implement and maintain, by contract with a vendor or service provider or otherwise, a database of all deferred deposit loans, title loans and high-interest loans in this state, for the purposes of ensuring compliance with existing law governing these types of loans. Under section 8, a licensee who makes such loans must report and update certain information concerning each deferred deposit loan, title loan and high-interest loan made by the licensee. Section 8 further requires the commissioner to establish a fee which must be charged and collected by the vendor or service provider from a licensee who is required to report the information using the database. The fee is required to be used to pay for the administration and operation of the database. Finally, sections 8 and 16 of this bill provide that information in the database or obtained by the commissioner from the database is confidential, except that the commissioner may use such information for statistical purposes if the identity of a person is not discernible from the information disclosed. Section 9 of this bill authorizes a person who operates a deferred deposit loan service, high-interest loan service or title loan service to distribute information and materials provided by the Department of Health and Human Services concerning public assistance and services provided by public agencies. Section 9.5 of this bill authorizes the Department of Business and Industry and the Bureau of Consumer Protection in the Office of the Attorney General to use reasonable means to inform the public regarding certain requirements for persons who offer deferred deposit loan services, high-interest loan services or title loan services through an Internet website to customers in this state. Existing law prohibits a person who operates a deferred deposit loan service from making a deferred deposit loan that exceeds 25% of the expected gross monthly income of the customer when the loan is made. (NRS 604A.5017) Similarly, existing law prohibits a person who operates a high-interest loan service from making a high-interest loan which requires any monthly payment that exceeds 25% of the expected gross monthly income of the customer. (NRS 604A.5045) Section 12 of this bill prohibits a person who operates a deferred deposit loan service from making a deferred deposit loan that, in combination with any other outstanding loan of the customer, exceeds 25% of the expected gross monthly income of the customer when the loan is made. Section 13 of this bill prohibits a person who operates a high-interest loan service from making a high-interest loan which, in combination with any other outstanding loan of a customer, requires any monthly payment that exceeds 25% of the expected gross monthly income of the customer. Sections 12 and 13 eliminate the ability of a person making a deferred deposit loan or high-interest loan to be deemed in compliance with these limitations if the customer receiving the loan presents evidence of his or her gross monthly income and represents in writing that the loan does not violate these limitations, unless the person utilizes the database created pursuant to section 8 to confirm that a loan is in compliance with these limitations. Section 23 of this bill provides that the provisions of this bill do not apply to any loan made before the provisions of this bill become effective. Sections 10 and 14 of this bill make conforming changes.

HB 450
Signed by governor 7/10/19, Chapter 168

This bill clarifies the authority of the bank commissioner to conduct investigations and examinations on certain regulated entities and the cost of such examinations born by the entity being examined.

HB 649
Signed by governor 5/15/19, Chapter 36

This bill clarifies the banking commissioner's rulemaking authority relative to certain regulated transactions, defines "significant event" for purposes of consumer credit, small loans, debt adjustments, and money lending, and makes other technical changes to statutes pertaining to banks and banking in New Hampshire.

Relates to financial institutions; lowers the maximum annual percentage rate for loans pursuant to the New Mexico bank installment loan act of 1959 and the New Mexico small loan act of 1955.

HB 150
Signed by governor 4/3/19, Chapter 201

Relates to financial institutions; amends the New Mexico bank installment loan act of 1959 and the New Mexico small loan act of 1955; adds definitions; clarifies violations deemed a violation of the unfair practices act; expands lender reporting requirements; clarifies loan insurance requirements; expands disclosure requirements; grants rights of rescission; provides for penalties.

Relates to financial institutions; lowers the maximum annual percentage rate for loans pursuant to the New Mexico Bank Installment Loan Act and the New Mexico Small Loan Act.

Relates to financial institutions; lowers the maximum annual percentage rate for loans pursuant to the New Mexico bank installment loan act of 1959 and the New Mexico small loan act of 1955.

Relates to state employees; provides for a program through which participates state employees have portions of their salaries or wages deducted and disbursed for the repayment of personal loans.

Relates to financial institutions; amends the New Mexico bank installment loan act of 1959 and the New Mexico small loan act of 1955; adds definitions; clarifies violations deemed a violation of the unfair practices act; expands lender reporting requirements; clarifies loan insurance requirements; expands disclosure requirements; grants rights of rescission; provides for penalties.

Enacts the "credit creation pilot program act of New York"; directs the superintendent of financial services to create and implement such act; defines terms; provides that a program licensee may not offer or make a program loan or impose any charges or fees without prior approval from the superintendent of financial services to participate in the program; provides for disclosures, statements and receipts, referral partners, permitted services and prohibited activities.

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.

SB 2093
Signed by governor 3/14/19, Chapter 123

Relates to the examination of technology service providers, the capital requirement for trust companies, the examination of trust companies, the definition of a financial institution, surety bond requirements for money brokers and collection agencies, notice requirement for deferred presentment service providers, fees for money transmitters, and reporting requirements for debt settlement providers; relates to automatic renewal of license in 2009 for money brokers.

SB 2252
Failed to pass Senate 1/30/19

Relates to deferred presentment service transaction fees; provides a penalty; provides for application.

SB 720
Signed by governor 4/18/19, Chapter 89

Relates to the small lenders; authorizes certain lenders to apply for certain licensure after certain date; prohibits certain loans after certain date; providing certain exception for outstanding loans; construing expiration of certain license; makes certain licenses expire on certain date; creates the Small Lenders Act; provides that any person licensed pursuant to the Deferred Deposit Lending Act may make application for licensure under the Oklahoma Small Lenders Act.

HB 2089
Signed by governor 5/30/19, Chapter 188

Prohibits title loan lender and payday loan lender from making loan to consumer until seven days after consumer has fully repaid outstanding title loan or payday loan.

Prohibits title loan lender and payday loan lender from making new title loan or payday loan within seven days of date on which any title loan or payday loan expires, including title loans or payday loans from other title loan lenders or payday loan lenders.

Creates to Law of Deferred Deposit Loans with the purpose of authorizing and regulating the industry in Puerto Rico of deferred deposit loans or what in the English language are known as Deferred Deposit Loans or Payday Loans.

This bill caps the annual percentage rate (APR) for payday loans to 28%; requires a maturity date of more than 90 days from closing; prohibits fees and interest payments of more than 60% of the principal amount; and requires that payments be made monthly with each payment being no more than 25% of the loan's original principal.

Repeals the provisions of the general laws allowing deferred deposit providers, also known as payday lenders.

Repeals provisions allowing deferred deposit providers, also known as payday lenders.

Adds §16-13-490 so as to create the crime of engaging in the business of deferred presentment in this state, to provide that a violation is a felony, and provides for a mandatory minimum penalty; and repeals chapter 39, title 34 relating to the South Carolina Deferred Presentment Services Act.

Adds §39-5-45 so as to provide 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.

Amends §34-39-180, 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%.

Amends chapter 5, title 39 of the 1976 code, relating to the South Carolina Unfair Trade Practices Act, to provide that a person who accepts a check for a deferred presentment transaction violates the South Carolina Infair Trade Practices Act, and repeals chapter 39, title 34, relating to deferred presentment services.

Amends §34-39-180(e) of the 1976 code, 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%.

HB 694
SB 729

Requires the department to implement a database no later than Jan. 1, 2021, for licensees providing deferred presentment and flex loan transactions to ensure that customers are not exceeding certain limits for such transactions; requires licensees to conduct database checks before entering into such transactions; authorizes a fee per transaction.

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

Relates to the threat or pursuit of criminal charges against a consumer in association with certain extensions of consumer credit.

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

Relates to regulation of certain credit services organizations.

Relates to the regulation of certain short term consumer loans; imposes an assessment and fees; requires an occupational license; authorizes fees.

Relates to increasing the maximum reference base amount for certain consumer loans.

Relates to the maximum permitted rate of interest, sum of fees, and other amounts due during a natural disaster declaration.

Relates to credit services organizations and extensions of consumer credit facilitated by credit services organizations; provides civil and administrative penalties.

Requires the State Corporation Commission, as a condition of licensing a consumer finance company, to find that the applicant will not make consumer finance loans at the same location at which the applicant makes payday loans or motor vehicle title loans. The measure also (i) sets the minimum and maximum amounts of a consumer finance loan at $500 and $35,000, respectively; (ii) requires that such loans be installment loans with a term that is not less than six months nor more than 120 months; (iii) sets the maximum annual interest rate on such loans at 36 percent; (iv) authorizes late payment fees of $20, provided that they are set forth in a contract; (v) authorizes loan processing fees of the greater of $75 or five percent of the principal amount of the loan but not to exceed $150; and (vi) increases the amount of a bad check fee from $15 to $25.