SB 699 - This act amends the law relating to unsecured loans of $500 or less. Under current law, lenders may renew such loans upon the borrower's request up to six times. This act only allows for two renewals. Each renewal may not be made for a period exceeding the original loan period.
Under current law, the director of the Division of Finance may issue a cease and desist order when lenders fail to make a good faith effort to comply with laws relating to consumer loans. This act allows the attorney general to do the same. The Attorney General may also file an action in any circuit court to enjoin the practice; impose a civil penalty; or to obtain an order of rescission, restitution, or disgorgement.
A lender may only charge interest and fees up to the amount of $15 per $100 of principal for the first 30 days of the loan and each renewal, and not more than 3% per month thereafter, which is an annual percentage rate of approximately 36%.
Under current law, the Division of Finance must report to the General Assembly, the number of licenses issued under this section every other year. This act requires the division to report every year.
The provisions in this section apply to all lenders, whether or not they are properly licensed.
This act is similar to HB 1171 (2006), SB 975 (2006), SB 96 (2007), SB 744 (2008), HB 150 (2009), and SB 20 (2009).