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2009 SESSION

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SB 1470 Payday lenders; prohibits any person licensed under Payday Loan Act from making open end loan.

Introduced by: Richard L. Saslaw | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Open-end loans by payday lenders. Prohibits licensed payday lenders from extending credit under open-end credit plans. Third parties are prohibited from making such loans at a payday lender's place of business. The prohibition does not apply to such loans if secured by a lien on a motor vehicle title. If a licensed payday lender relinquishes its license and then makes open-end loans, it may not be re-licensed to make payday loans for a period of 10 years. The measure is emergency legislation that will take effect upon passage. HB 1709 is identical.

SUMMARY AS PASSED:

Open-end loans by payday lenders. Prohibits licensed payday lenders from extending credit under open-end credit plans. Third parties are prohibited from making such loans at a payday lender's place of business. The prohibition does not apply to such loans if secured by a lien on a motor vehicle title. If a licensed payday lender relinquishes its license and then makes open-end loans, it may not be re-licensed to make payday loans for a period of 10 years. HB 1709 is identical.

SUMMARY AS PASSED SENATE:

Open-end loans by payday lenders.  Prohibits any person licensed as a lender under the Payday Loan Act or any affiliate of such licensee, from making an open-end loan pursuant to the provision that currently allows any seller or lender to extend credit under an open-end credit or similar plan at any rate of interest and fees that the parties agree, as long as the obligor is provided a 25-day interest-free grace period.  An extension of credit that violates this prohibition is declared to be unenforceable against the borrower.

SUMMARY AS INTRODUCED:

Open-end loans by payday lenders.  Prohibits any person licensed as a lender under the Payday Loan Act from making an open-end loan pursuant to the provision that currently allows any seller or lender to extend credit under an open-end credit or similar plan at any rate of interest and fees that the parties agree, as long as the obligor is provided a 25-day interest-free grace period.  An extension of credit that violates this prohibition is declared to be unenforceable against the borrower.