Bill > SB1367

This bill modifies Hawaii's laws regarding installment loans by making several key changes to improve clarity and consumer protections. It updates the definition of "installment lender" to clarify licensing requirements and removes language about third-party exemptions. The bill allows lenders to charge monthly maintenance fees with a new requirement that fees be prorated daily for partial months, using specific daily rates based on the loan amount. Lenders can now charge a $1 convenience fee for debit card payments, but cannot require this payment method. The bill eliminates the previous three-day waiting period between loan repayment and issuing a new loan, simplifying the lending process. It also requires paper receipts only for cash or in-person payments and removes the consumer's name from these receipts for privacy reasons. Additionally, the bill maintains existing protections such as limiting loan amounts to $1,500, capping loan charges at 50% of the principal, and prohibiting liens on personal property. The legislation is set to take effect on July 1, 2025, and will automatically sunset (expire) on June 30, 2030, after which the previous version of the law will be reinstated.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1367&year=2025