Bill > SB720

This bill creates the Oklahoma Small Lenders Act, which will replace the Deferred Deposit Lending Act as of August 1, 2020. The key provisions of this bill include: - Establishing a new licensing requirement for small lenders, with specific requirements for tangible net worth, financial responsibility, and background checks. - Allowing current deferred deposit lenders to apply for the new small lender license starting January 1, 2020, and prohibiting new deferred deposit loans after August 1, 2020. - Capping small loan amounts at $1,500 and limiting total monthly payments to 20% of a borrower's gross monthly income. - Authorizing the Administrator of the Department of Consumer Credit to promulgate rules, conduct examinations, and take enforcement actions against licensees. - Maintaining existing requirements for small lenders to contribute fees to the Consumer Credit Counseling Revolving Fund and the Personal Financial Literacy Education Revolving Fund. The bill aims to transition the short-term lending industry in Oklahoma from deferred deposit loans to a more regulated small loan framework with enhanced consumer protections.

Business and Industry

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb720&Session=1900