House Sponsors: DELGADO-FRITCHEY-SOTO-MILLER-DART, YARBROUGH AND SCHOENBERG. Short description: 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. Effective immediately. 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 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status