Bill > HB1048

This bill modifies Hawaii's laws regarding installment loans by making several key changes to clarify and update regulations. The bill replaces the term "consumer loan" with "installment loan" and adjusts the definition of who is considered an installment lender, specifically excluding certain exempt entities. It introduces more precise rules for loan maintenance fees, mandating that fees be prorated daily for partial months and establishing specific monthly fee caps based on loan amounts. The bill allows lenders to charge a $5 convenience fee for debit card payments while prohibiting them from making such payments mandatory. It eliminates the previous requirement that lenders wait three days after a full loan repayment before issuing a new loan, simplifying the lending process. The bill also modifies receipt requirements, now mandating paper receipts only for cash or in-person payments and removing consumer names from these receipts. Additionally, the legislation maintains existing protections such as prohibiting liens on consumer property and limiting total loan charges to 50% of the principal amount. The bill will take effect on July 1, 3000, with a sunset provision that will revert the law to its previous form on June 30, 2028, unless further action is taken.