Bill > SB0830

This bill amends the Deferred Presentment Service Transactions Act to allow licensed providers of deferred presentment service transactions, commonly known as "payday loans," to also offer "small loans," which are defined as unsecured loans of up to $2,000 with a maturity of 90 to 365 days, intended for personal, family, or household use. The bill introduces new definitions for terms like "basic living expenses" and "debt-to-income ratio" to guide lenders in assessing a borrower's ability to repay small loans, and establishes a "consumer education and financial services access and literacy fund" to support financial literacy programs, funded by fees collected from licensees. It also mandates that licensed providers must post clear notices about the terms and consumer rights associated with both deferred presentment transactions and small loans, and requires them to verify a customer's eligibility through a statewide database that will now include small loans. Additionally, the bill outlines specific requirements for small loan agreements, including repayment schedules and the prohibition of prepayment penalties, and clarifies that deferred presentment transactions cannot be converted into small loans.