91st General Assembly
Summary of SB1472
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Senate Sponsors:
LIGHTFORD.

Short description: 
SHORT-TERM LOAN ACT                                                        

Synopsis of Bill as introduced:
        Creates the Short-term Loan Act.  Provides that a short-term loan      
   is a loan that has both a term  of  not  more  than  30  days  and  an      
   interest  rate  of  more  than 36%. Requires licensees 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 li-         
   cense, 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,  rather than an 800, 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% 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: 01-01-09

           Location: Senate

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


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