Document dated Jun. 4, 2025, received from LOU LEG Jun. 9, summarized on Jun. 11.
Overview
Defined commissioner, deferred presentment transaction, loan, Consumer Price Index for All Urban Consumers, licensee, partial payment, prepayment, and small loan.
Increased monetary amount for deferred presentment transaction from $350 to $700.
Removed the provision that allows a licensee to charge the equivalent rate of interest on a small loan and also prohibits the fee or interest from exceeding $45.00.
Required the office of financial institutions, beginning on or before Sep. 1 of each year, to publish a new maximum outstanding principal balance permitted on its website.
Also provided formula for how the new amount shall be calculated, prohibits a licensee from reporting negative customer data to any credit bureau or credit reporting service.
Legislative History
On Apr. 14, 2025, bill introduced in House; on May 12, 2025, bill was passed in House.
On May 13, 2025, bill introduced to Senate; on Jun. 3, 2025, amended bill passed.
On Jun. 3, 2025, bill returned to House; on Jun. 4, 2025, amendments concurred in.
Effectiveness
If an effective date is not provided in the bill text, the bill will always become effective on Aug. 1 of the year that the bill passed the Legislature, so effective on Aug. 1, 2025.
Jul. 2025 LOU LEG Bill Approval
On Jul. 1, 2025, LOU LEG approved bill without governor's signature, became Act 510.
Regulators
LOU LEG
Entity Types
Bank; CNSM; Corp; Thrift
Reference
Act 510, Bill HB582, 7/1/2025; Bill HB582, 6/4/2025; Citation: *LOU LEG* 9:3578.3, 9:3578.4, 9:3578.6;
Functions
Compliance; Financial; Legal; Record Retention; Registration/Licensing; Reporting
