Signed by Governor Chris Gregoire

Vote Smart's Synopsis:

Vote to pass a bill that increases regulations on payday lending, including, but not limited to, capping the maximum amount that may be loaned, capping the number of loans that individuals may receive in one period of time, and establishing the right to an installment plan if necessary.

Highlights:

- Limits the maximum principal amount of any payday loan to 30 percent of the borrower's gross monthly income or $700, whichever is less (Sec. 3). - Prohibits lenders from issuing payday loans to borrowers that are in default on another payday loan until after the balance has been paid or 2 years have passed from the original date of issuance, whichever occurs first (Sec. 3). - Prohibits lenders from issuing payday loans to borrowers that have received more than 8 payday loans in a twelve month period (Sec. 3). - Requires lenders to provide borrowers with the opportunity to enter into an installment plan without facing additional fees or penalties if they inform the lender that they are unable to pay the balance on time (Sec. 4). - Requires installment plans for a loan of up to $400 to provide for a minimum of 90 days for the borrower to repay the balance, and requires installment plans for a loan in excess of $400 to provide for a minimum of 180 days for the borrower to repay the balance (Sec. 4). - Authorizes borrowers to use postdated checks for installment plan payments, and prohibits lenders from charging the borrower for a dishonored postdated check (Sec. 4). - Authorizes lenders to charge a one-time $25 fee if the borrower defaults on the installment plan (Sec. 4). - Prohibits lenders from issuing payday loans to borrowers already enrolled in an installment plan until after the balance has been paid or 2 years have passed from the original date of the installment plan, whichever occurs first (Sec. 3). - Requires the Director of Financial Institutions to develop and implement a system by which lenders may determine the following (Sec. 6):

- If the borrower has one or more outstanding payday loans; - If the borrower is eligible for a payday loan; - If the borrower is in an installment plan; and - Any other information necessary to comply with the provisions of this Act.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases regulations on payday lending, including, but not limited to, capping the maximum amount that may be loaned, capping the number of loans that individuals may receive in one period of time, and establishing the right to an installment plan if necessary.

Highlights:

- Limits the maximum principal amount of any payday loan to 30 percent of the borrower's gross monthly income or $700, whichever is less (Sec. 3). - Prohibits lenders from issuing payday loans to borrowers that are in default on another payday loan until after the balance has been paid or 2 years have passed from the original date of issuance, whichever occurs first (Sec. 3). - Prohibits lenders from issuing payday loans to borrowers that have received more than 8 payday loans in a twelve month period (Sec. 3). - Requires lenders to provide borrowers with the opportunity to enter into an installment plan without facing additional fees or penalties if they inform the lender that they are unable to pay the balance on time (Sec. 4). - Requires installment plans for a loan of up to $400 to provide for a minimum of 90 days for the borrower to repay the balance, and requires installment plans for a loan in excess of $400 to provide for a minimum of 180 days for the borrower to repay the balance (Sec. 4). - Authorizes borrowers to use postdated checks for installment plan payments, and prohibits lenders from charging the borrower for a dishonored postdated check (Sec. 4). - Authorizes lenders to charge a one-time $25 fee if the borrower defaults on the installment plan (Sec. 4). - Prohibits lenders from issuing payday loans to borrowers already enrolled in an installment plan until after the balance has been paid or 2 years have passed from the original date of the installment plan, whichever occurs first (Sec. 3). - Requires the Director of Financial Institutions to develop and implement a system by which lenders may determine the following (Sec. 6):

- If the borrower has one or more outstanding payday loans; - If the borrower is eligible for a payday loan; - If the borrower is in an installment plan; and - Any other information necessary to comply with the provisions of this Act.

Full Bill Text