General Assembly |
Raised Bill No. 1040 | ||
January Session, 2007 |
LCO No. 3506 | ||
*03506_______BA_* | |||
Referred to Committee on Banks |
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Introduced by: |
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(BA ) |
AN ACT PROHIBITING THE MAKING OF PAYDAY LOANS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2007) No person shall engage in the business of making a payday loan. For the purposes of this section, a "payday loan" means an unsecured, short-term cash advance (1) made to a borrower until the next payday of such borrower, (2) with an interest rate exceeding thirty-six per cent per annum, and (3) made in accordance with a loan agreement that provides that the borrower writes a postdated check to the lender, authorizes the lender to debit the borrower's account or executes a wage assignment.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2007 |
New section |
Statement of Purpose:
To specifically prohibit the making of payday loans in order to protect consumers from the predatory terms and tactics employed in the making of such loans.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]