Vote Smart's Synopsis:

Vote to pass a bill that authorizes flexible credit loans from payday lenders.

Highlights:

• Establishes flexible credit loans, regulated by the Arizona Department of Financial Institutions (DFI) and outlines the requirements for licensure, loan plans, interest rates and finance charges (Sec. 1).

• Authorizes a licensee to contract for and receive finance charges on a flexible credit loan, not exceeding the following, if the original principal amount is at least $500 but not more than $2,500 (Sec. 1):

• 17% per month if unsecured; and

• 15% per month if secured with personal property.

• Prohibits a licensee from compounding finance charges (Sec. 1).

• Specifies that flexible credit loan statutes do not pertain to any individual that (Sec. 1):

• Does business under any other law of this state, or any other state while regulated by a state agency of that state, or of the United States, relating to specified financial institutions;

• Is licensed as a pawnbroker;

• Is not regularly engaged in the business of making flexible credit loans; or

• Is licensed as a consumer lender or governed under the Motor Vehicles Time Sales.

Full Bill Text