CAPWATCH: Good Bill to Stem Predatory Lending – Fri. 2.19.16

ACTION ALERTSenate Commerce, Consumer Protection and Health to hear good bill on predatory lending/payday lending – SB 2679

FRIDAY, FEBRUARY 19, 2016 @ 9 AM in Room 229

PLEASE SUPPORT!

COMMITTEE ON COMMERCE, CONSUMER PROTECTION, AND HEALTH
Senator Rosalyn Baker, Chair
Senator Michelle Kidani, Vice Chair
Friday, February 19, 2016
9:00 a.m.
Room 229

STRONG SUPPORT FOR SB 2679 – PREDATORY LENDING

SB 2679 – CHECK CASHING; DEFERRED DEPOSIT AGREEMENTS; FEES; ANNUAL PERCENTAGE RATE

Specifies a customer has the right to rescind a deferred deposit by returning the principal amount used to fund the deferred deposit within a specified time frame. Permits customers to convert a deferred deposit into an installment loan plan in certain circumstances and specifies requirements for the installment loan plan. Protects against harmful collection practices. Defines annual percentage rate. Requires a check casher to provide a written agreement to a customer that clearly discloses specific information relating to the cost and fees associated with the deferred deposit, among other things. Caps the annual percentage rate at no more than thirty-six per cent for deferred deposit of a personal check. Permits prepayment of deferred deposit agreements with no additional fees.                        BAKER, INOUYE, KEITH-AGARAN, KIDANI, TOKUDA, Taniguchi

http://www.capitol.hawaii.gov/session2016/bills/SB2679_.pdf

CAP POSITION:           STRONG SUPPORT 

CAP TESTIMONY:     2.19.16 CPH Testimony SUPPORTING SB 2679

TALKING POINTS:

  • Payday loans are generally used by the most vulnerable people in our community
  • People exiting incarceration with limited or no funds use payday loans to support themselves or their families
  • When people are desperate, they don’t read the fine print – 459% APR!  SUPPORT A 36% CAP
  • This bill addresses many of the problems raised last session

Here for info on how to submit testimony.

 

I alone cannot change the world, but I can cast a stone across the waters to create many ripples. – Mother Teresa

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