LIGHTFORD. New Act Creates the Short-term Loan Act. Provides that a short-term loan is a loan that has both a term of not more than 30 days and an interest rate of more than 36%. Requires licensees to disclose all fees and interest charges on loans for all durations of loans made by the licensee. Requires licensees to disclose, when renewing the li- cense, the number of loans made secured by title to a motor vehicle, the number of vehicle repossessions, the number of loans secured by post-dated checks, and the number of loans secured by post-dated checks that were defaulted. Requires licensees to disclose a toll-free, rather than an 800, telephone number for the Department of Financial Institutions. Provides that the appraisal of motor vehicles that secure loans may not exceed the vehicle's "blue book" value. Requires licensees to provide debt management counseling information to defaulting borrowers. Provides that licensees may, but do not have to, issue loan proceeds by check. Prohibits additional charges for cashing instruments issued by the licensee. Imposes limits on origination fees for loans. Limits interest charges to an annual percentage rate not exceeding 40% over the prime rate. Authorizes a borrower to make partial payments at any time without charge. Provides that with respect to a check received as payment for a loan that is returned for nonpayment, a licensee may assess a fee only once regardless of how many times the check is redeposited and that the fee is the exclusive charge for late payment. Effective immediately. 00-01-26 S FIRST READING 00-01-26 S REFERRED TO SENATE RULES COMMITTEE RULES 01-01-09 S SESSION SINE DIE END OF INQUIRY Full Text Bill Summary