Bill > HB1048

This bill updates Hawaii's installment loan regulations by making several key changes to existing law. It replaces the term "consumer loan" with "installment loan" and clarifies who is subject to the installment loan chapter, specifically defining installment lenders and their licensing requirements. The bill allows lenders to charge a $5 convenience fee for debit card payments while prohibiting them from making such payments mandatory. It modifies monthly maintenance fee structures by requiring pro-ration for partial months, with different fee caps based on loan amounts. The bill removes the previous requirement that lenders wait three days after a loan is fully repaid before issuing a new loan, and it changes receipt requirements to only mandate paper receipts for cash or in-person payments, while removing consumer names from those receipts. Additionally, the bill maintains existing protections such as limiting loan amounts to $1,500, capping total loan charges at 50% of the principal, and ensuring loans are fully amortized. The legislation includes a sunset provision, set to be repealed on June 30, 2028, with an unusual effective date of July 1, 3000, which is likely a drafting placeholder.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1048&year=2025