Payday Lending
SB58 - Deferred presentment transactions, term set at 30 days, Sec. 5-18A-13 amd.
Sponsor(s):
SB58 - Senator Orr
Synopsis and Analysis: Under existing law, the term of a deferred presentment transaction is between 10 and 31 calendar days.
This bill would require the term of a deferred presentment transaction to be a minimum of 30 calendar days.
League Action and Justification: Support. The LWVAL supports extending the time for repayment of a payday loan before a new fee is applied. Disproportionately, lower income borrowers are relying on payday loans for a variety of reasons, including a lack of other, more traditional sources of financial assistance. Defaults on these loans often have dire consequences, different from traditional lending. As the debt amount rapidly multiplies, it can become impossible to repay. This bill is a small step toward alleviating that problem.
Bill Progress in Legislature
Go here to get more information about the bill and changes in the bill as it progresses through the legislature.
Fiscal Notes Description for SB58 in Banking and Insurance
SB58 - Deferred presentment transactions, term set at 30 days, Sec. 5-18A-13 amd.Sponsor(s):
SB58 - Senator Orr
Synopsis and Analysis: Under existing law, the term of a deferred presentment transaction is between 10 and 31 calendar days.
This bill would require the term of a deferred presentment transaction to be a minimum of 30 calendar days.
League Action and Justification: Support. The LWVAL supports extending the time for repayment of a payday loan before a new fee is applied. Disproportionately, lower income borrowers are relying on payday loans for a variety of reasons, including a lack of other, more traditional sources of financial assistance. Defaults on these loans often have dire consequences, different from traditional lending. As the debt amount rapidly multiplies, it can become impossible to repay. This bill is a small step toward alleviating that problem.
Bill Progress in Legislature
Go here to get more information about the bill and changes in the bill as it progresses through the legislature.
Fiscal Notes Description for SB58 in Banking and Insurance
| Calendar Date | Body | Amd/Sub | Matter | Committee | Nay | Yea | Abstain | Vote |
| 02/04/2020 | S | Read for the first time and referred to the Senate committee on Banking and Insurance | B&I | | | |
02/12/2020 - Public hearing was scheduled for SB58 in room 320 at 1:00 PM.
Contact information for legislators and committees that might be referenced in this bill:
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