YARBROUGH AND SCHOENBERG.
SHORT-TERM LOAN ACT
Synopsis of Bill as introduced:
Creates the Short-term Loan Act. Requires applicants to provide
public notice of the filing of applications for licenses and renewals.
Requires a licensee to disclose all fees and interest charges on loans
for all durations of loans made by the licensee. Requires licensees to
disclose when renewing the license the number of loans made secured by
title to a motor vehicle, the number of vehicle repossessions, the
number of loans secured by post-dated checks, and the number of loans
secured by post-dated checks that were defaulted. Requires licensees
to disclose a toll-free telephone number for the Department of
Financial institutions. Provides that the appraisal of motor vehicles
that secure loans may not exceed the vehicle's "blue book" value.
Requires licensees to provide debt management counseling information
to defaulting borrowers. Provides that licensees may, but do not have
to, issue loan proceeds by check. Prohibits additional charges for
cashing instruments issued by the licensee. Imposes limits on
origination fees for loans. Limits interest charges to an annual
percentage rate not exceeding 40 percentage points over the prime
rate. Authorizes a borrower to make partial payments at any time
without charge. Provides that with respect to a check received as
payment for a loan that is returned for nonpayment, a licensee may
assess a fee only once regardless of how many times the check is
redeposited and that the fee is the exclusive charge for late payment.
FISCAL NOTE (Department of Financial Institutions)
HB 2531 would have a fiscal impact of at least $225,000 to
cover the cost of putting together a database to collect and
store the statistical information coming to the Department.
There would also be additional costs from HB 2531 to cover the
costs of hearings. The Department estimates $5,000 per hearing,
but there is no way to determine the number of hearings that
would result from this bill.
HOUSE AMENDMENT NO. 1.
Removes limit on finance charges. Removes restriction against
locating a licensee near a college or university. Reduces from one
mile to one-half mile the distance that a licensee location must be
from wagering facilities. Provides that reports available to the
public must be redacted to protect competitive practices or trade
secrets. Eliminates criminal penalties for violations.
Last action on Bill: THIRD READING/SHORT DEBATE/LOST 059-042-013
Last action date: APR-05-2001
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0
END OF INQUIRY
Full Text Bill Status