Bill > SF132

This bill modifies regulations for delayed deposit services businesses, commonly known as "payday lenders," by establishing a maximum annual percentage rate (APR) of thirty-six percent, calculated according to the federal Truth in Lending Act, unless a lender opts into stricter debt limitations and electronic tracking requirements. It also prohibits lenders from initiating debt collection lawsuits or arbitration for unpaid checks unless they first offer the borrower a repayment plan in biweekly installments of no more than ten percent of the check's face value, without additional charges beyond a limited penalty for late payments, and during which the debt cannot be sold or considered in default. Furthermore, the bill shortens the maximum holding period for a check from thirty-one days to fourteen days and introduces new rules for lenders who choose to charge an APR higher than thirty-six percent, requiring them to use an electronic database to track borrower indebtedness and limiting the total duration of a borrower's outstanding loans to ninety days within a twelve-month period, with specific provisions for repayment periods not counting towards this limit.