Consumer loan act (CLA) was amended to protect consumers from predatory loans.
Consumers and Predatory Loans
Individuals must not attempt to evade CLA requirements as specified in amendment.
Must not assist borrower to get loan with greater interest rate, consideration, charge.
If the loan exceeds the rate permitted under CLA, an entity making a loan is subject to the requirements of the CLA even if that entity is acting as an agent, service provider.
Also CLA violation if entity making the loan has predominant economic interest in the loan or if evidence shows that transaction is structured to evade act's requirements.
Does not apply to entities that give money/credit to another person while representing them in a legal proceeding where entity may get portion of an award or settlement.
Also does not apply to entity that requires repayment if the person does not prevail in the civil proceeding; entities that make loans without proper license are unenforceable.
Act applies prospectively, and does not apply to any loan issued prior to the bill's effective date unless the bill is renegotiated or modified after the effective date.
Legislative History
On Jan. 8, 2024, bill introduced in Senate; on Feb. 6, 2024, bill was passed in Senate.
On Feb. 8, 2024, bill delivered to House; on Feb. 29, 2024, bill was passed in House.
On Mar. 8, 2024, bill was sent to governor for action; pending signature or veto.
Effectiveness
Bill is effective 90 days after the adjournment of the bill session, ie., Jun. 6, 2024.
Mar. 25, 2024 WAS LEG Governor Approval
On Mar. 25, 2024, WAS LEG reported governor signed bill into law, assigned Ch. 249.
Document dated Mar. 25, received from WAS LEG on Mar. 27 summarized on Apr. 2.
