Senate advances payday‑lending reporting, imposes 24‑hour cooling‑off rule
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Summary
Senate Bill 83 requires deferred‑deposit (payday) lenders to report four summary data points annually to the Commissioner of Financial Institutions and adds a 24‑hour cooling‑off period to prevent an immediate follow‑on loan; sponsors said the bill balances consumer protection and reasonable reporting requirements.
Senate Bill 83, described as the Check Cashing and Deferred Deposit Lending Registration Act, passed the Senate after floor debate about the scope of required reporting and whether the fiscal impact of collection had been assessed.
Senator Maine, the sponsor, said the bill narrows reporting to four items: the average loan amount the lender extends, the average number of days of a deferred deposit loan, the minimum and maximum amount of interest/charges for a $100 loan for one week, and the total number of loans rescinded by consumers within 24 hours. The sponsor said those four data points would give the Commissioner of Financial Institutions information to compile an annual, aggregated report under GRAMA so data would be available statewide rather than allowing individual consumers to obtain detailed lender-level data.
The bill also creates a 24‑hour ‘‘cooling‑off’’ period preventing a lender from offering an immediate replacement loan to a consumer who has just repaid a prior loan; sponsors argued that gives consumers a pause to consider additional borrowing.
Senator Griner asked about the absence of a fiscal note given that the bill imposes reporting and data collection duties; Maine said the commissioner had been consulted and was comfortable with the four summary items. After sponsor floor closing, the roll-call showed 27 yes, 0 no and 2 absent; the bill will be read for the third time.
