Bill > HB1918

This bill limits the annual percentage rate for payday lending to 36 percent and makes other modifications to small loans under the payday lending laws. Specifically, the bill: 1. Defines "small loan" to include any advance of money or credit that is required to be repaid, regardless of whether the borrower is personally liable or the transaction carries required charges or payments. 2. Prohibits licensees from charging, contracting for, or receiving, directly or indirectly, charges or amounts exceeding an annual percentage rate of 36 percent on the unpaid balance of the amount financed for small loans made or renewed after the effective date of the bill. 3. Adds new provisions prohibiting various deceptive or unfair practices related to small loans, such as soliciting, making, or arranging for a borrower to obtain a small loan with a higher annual percentage rate than permitted, and engaging in any device or subterfuge to evade the requirements of the law. 4. Provides that if a small loan exceeds the annual percentage rate permitted, the person is considered a lender subject to the requirements of the law, even if they claim to be acting as an agent or service provider for an exempt entity. Overall, the bill aims to protect consumers by capping the interest rates and fees for payday loans and prohibiting predatory lending practices.