Clarifies the process to regulate installment lenders, replaces the term consumer loan with installment loan and requires that the loan maintenance fees be prorated daily.
Allows lenders to charge a convenience fee, and requires paper receipts only for in-person or cash payments and removes the consumer names from receipts for privacy.
Lenders no longer have to wait 3 days to issue a new loan once consumer repays loan.
Legislative History
On Jan. 23, 2025, bill introduced in Senate; on Mar. 4, 2025, bill passed in Senate.
On Mar. 4, 2025, bill introduced in House; on Apr. 4, 2025, bill was passed in House.
On Apr. 8, 2025, bill returned to Senate; on Apr. 30, 2025, bill received final reading.
On May, 2, 2025, bill was enrolled and sent to the governor, pending governor action.
Effectiveness
Takes effect Jul. 1, 2025 and repealed Jun. 30, 2030; HWI FIN 480J-2, HWI FIN 480J-5 and installment lender terms will revert to language before Act's effective date.
May 29, 2025 HWI LEG Governor Approval
On May 29, 2025, HWI LEG reported governor signed bill into law; assigned Act 116.
