Signed by Governor Bill Ritter, Jr.

Vote Smart's Synopsis:

Vote to repass a bill after having concurred with Senate amendments that establish a limit on payday loan interest rates.

Highlights:

-Requires the lender to document each deferred deposit loan transaction by a written agreement signed by both the lender and consumer (Sec. 3). -Prohibits a maximum loan term or minimum finance charge (Sec. 3). -Requires the minimum loan term to be 6 months from the loan transaction date and prohibits a penalty if the consumer repays the loan before the loan due date (Sec. 3). -Authorizes the lender to charge a finance fee for each payday loan that cannot exceed 20 percent of the first $300 plus 7.5 percent of any amount loaned in excess of $300 (Sec. 4). -Authorizes the lender to charge an interest rate of 45 percent per annum for each deferred loan and requires that, if the loan is prepaid prior to the due date, the lender refund the consumer a prorated portion of the annual percentage rate based upon the ratio of time left before the loan due date (Sec. 4). -Authorizes a monthly maintenance fee for each outstanding loan not to exceed $7.50 for each $100 loaned and only up to $30 per month (Sec. 4). -Prohibits lenders from lending an amount greater than $500 at any one time and requires a waiting period of 30 days between loans (Sec. 5). -Authorizes lenders to assess on renewed loans an additional finance charge that cannot exceed an annual percentage rate of 45 percent (Sec. 6). -Establishes that this act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; August 11, 2010 if adjourned sine die is on May 12, 2010 (Sec. 8).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a limit on payday loan interest rates.

Highlights:

-Requires the lender to document each deferred deposit loan transaction by a written agreement signed by both the lender and consumer (Sec. 3). -Prohibits a maximum loan term or minimum finance charge (Sec. 3). -Requires the minimum loan term to be 6 months from the loan transaction date and prohibits a penalty if the consumer repays the loan before the loan due date (Sec. 3). -Authorizes the lender to charge a finance fee for each payday loan that cannot exceed 20 percent of the first $300 plus 7.5 percent of any amount loaned in excess of $300 (Sec. 4). -Authorizes the lender to charge an interest rate of 45 percent per annum for each deferred loan and requires that, if the loan is prepaid prior to the due date, the lender refund the consumer a prorated portion of the annual percentage rate based upon the ratio of time left before the loan due date (Sec. 4). -Authorizes a monthly maintenance fee for each outstanding loan not to exceed $7.50 for each $100 loaned and only up to $30 per month (Sec. 4). -Prohibits lenders from lending an amount greater than $500 at any one time and requires a waiting period of 30 days between loans (Sec. 5). -Authorizes lenders to assess on renewed loans an additional finance charge that cannot exceed an annual percentage rate of 45 percent (Sec. 6). -Establishes that this act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; August 11, 2010 if adjourned sine die is on May 12, 2010 (Sec. 8).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a limit on payday loan interest rates.

Highlights:

-Establishes the maximum authorized interest rate for a payday loan charged to a consumer at 45 percent per year (Sec. 1). -Authorizes payday loan lenders to charge a finance charge of at most $10 for each $100 for the initial loan in a 12-month period (Sec. 3). -Prohibits lenders from lending an amount greater than $500 nor shall the amount financed exceed $500 by any one lender to a consumer (Sec. 4).

Full Bill Text