Senate Bill 515- would significantly curb the amount of payday lending that occurs in our State. The bill language is available here:
The bill would:
- Establish an Annual Loan Limit Per Borrower to Prevent Repeat Borrowing: By limiting the number of payday loans payday lenders can make to a borrower to 4 per year, SB 515 allows borrowers to continue to utilize emergency high-cost credit. To ensure compliance across all lenders in the state, the loan limit would be enforced by a database created and overseen by the Department of Corporations. This reform would maintain the current fee structure for payday loans.
- Extend Minimum Loan Terms to Give Borrowers More Time to Repay Their Loans: SB 515 increases the amount of time a borrower has to pay back a loan to 30 days per $100. Currently payday loans are due in full typically in about 2 weeks, when research shows that most borrowers cannot meet other basic financial obligations without re-borrowing.
- Establish Reasonable Requirements for Lenders to Assess Borrowers’ Ability to Repay Their Loans: SB 515 proposes standards established in the 2010 CFLL small dollar loan pilot program (SB 1146, Florez) to ensure that both income and debt obligations are verified and considered before a loan can be made.
- Allows a borrower who is unable to repay a payday loan in full on the due date to enter into an installment repayment plan.
- Requires payday lenders to provide additional information to the Department of Corporations for the annual report on the deferred deposit transaction law.
To find out more about how you can express your support for this Bill please contact firstname.lastname@example.org.