92nd General Assembly
Summary of SB0820
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Senate Sponsors:
LIGHTFORD.

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.                                                      
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   0


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 Full Text  Bill Status