Bill > SB219

This bill, concerning debts, primarily amends existing Kentucky law to introduce a $3 fee per deferred deposit transaction, which is a short-term loan often referred to as a payday loan, for data submission requirements managed by the Commissioner of the Department of Financial Institutions. This fee can be passed on to the customer. The bill also makes changes to the maximum amount a customer can borrow through deferred deposit transactions, increasing it from $500 to $600, with provisions for annual adjustments based on the Consumer Price Index, up to a maximum of $850. Additionally, it introduces new requirements for the information that must be included on orders of attachment or garnishment of earnings, which are legal orders to seize a portion of an employee's wages to satisfy a debt, ensuring clearer communication between creditors and employers. These changes regarding deferred deposit transactions will take effect for transactions entered into on or after the bill's effective date.