Vote to pass a bill that caps the interest rate that lenders may charge on a deferred deposit loan.
- Caps the annual interest rate for deferred deposit loans at 45 percent [sec. 3 (1) (b)].
- Limits the finance charges to no more than $20 for the first $100 loaned, $10 for every $100 loaned thereafter, and $60 altogether [sec. 3 (a) (1) (a)].
- Prohibits lenders from charging prepayment penalties for early payments of deferred deposit loans [sec. 3 (2)].
- Prohibits lender from knowingly making a deferred deposit loan to anyone who already has an outstanding deferred deposit loan (Sec. 4).
- Requires lenders to post a notice in a prominent place on each deferred deposit loan agreement explaining that state law prohibits deferred deposit loans from exceeding $500 plus applicable charges at one time, and that you have the right to rescind the transaction by 5 P.M. the following business day (Sec. 5).