SB 1316 - Establishes Flexible Credit Loans - Arizona Key Vote
Issues Related to SB 1316
March 21, 2016(Key vote)
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Title: Establishes Flexible Credit Loans
Vote to pass a bill that authorizes flexible credit loans from payday lenders.
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.
Legislation - Bill Passed (Senate) (29-0) - Feb. 18, 2016
Legislation - Introduced (Senate) - Jan. 28, 2016
Title: Authorizes Flexible Credit Loans
- John Kavanagh (AZ - R) (Out Of Office)