2019 House Bill 5097

Authorize small non-payday loans by payday lenders

Introduced in the House

Oct. 10, 2019

Introduced by Rep. Brandt Iden (R-61)

To allow payday lenders to make “small loans” of up $2,500 for 90 days, subject to restrictions specified in the bill. These would be 90-day to one-year loans that are not secured by a future paycheck.

Referred to the Committee on Regulatory Reform

Dec. 10, 2019

Reported without amendment

Refer to the Committee on Ways and Means with the recommendation that the substitute (H-3) be adopted.

Referred to the Committee on Ways and Means

May 27, 2020

Reported without amendment

With the recommendation that the substitute (H-5) be adopted and that the bill then pass.

Amendment offered by Rep. Bill Sowerby (D-31)

To tie-bar the bill to House Bill 4251, meaning this bill cannot become law unless that one does also. HB 4251 would cap the service fee that may be charged by a payday loan service at an annual percentage rate of 36 percent.

The amendment failed by voice vote

Amendment offered by Rep. Sarah Anthony (D-68)

To cap the annual percentage rate on payday loan "service fees" at 36 percent.

The amendment failed by voice vote

Amendment offered by Rep. Frank Liberati (D-13)

To prescribe the factors that a payday loan service must consider in determining whether a borrower is financially capable of repaying a loan.

The amendment failed by voice vote

Amendment offered by Rep. Cynthia Johnson (D-5)

To revise details in the disclosure statement potential borrowers must sign giving details of past loans.

The amendment failed by voice vote

Passed in the House 58 to 49 (details)

Received in the Senate

May 28, 2020

Referred to the Committee on Regulatory Reform