Vote Smart's Synopsis:

Vote to pass a bill that authorizes licensed lenders to offer "flex loans."

Highlights:

• Authorizes a licensed lender to offer a “flex loan” up to $3,000 (Art. 1).

• Defines “flex loan” as an open credit plan under which a licensed lender makes credit available up to an established limit for personal, family, or household purposes (Art. 1).

• Requires an individual with a flex loan to make a monthly minimum payment of 5 percent of the principal balance (Art. 1).

• Prohibits the annual interest rate of a flex loan from exceeding 36 percent (Art. 1).

• Prohibits the annual interest rate of a flex loan from being compounded (Art. 1).

• Authorizes a licensed flex loan lender to charge a customary fee with a daily rate of up to 0.5 percent of the unpaid balance (Art. 1).

• Authorizes an individual to pay a flex loan early, in full or in part, without penalty (Art. 1).

Full Bill Text