THE SENATE

S.C.R. NO.

102

TWENTY-THIRD LEGISLATURE, 2005

  

STATE OF HAWAII

  
   

SENATE CONCURRENT

RESOLUTION

 

REQUESTING A STUDY OF LENDING PRACTICES AND LENDING PRACTICES LAWS.

 

WHEREAS, consumers in the State of Hawaii have a need for short-term and long-term loans; and

WHEREAS, this need exists among all consumer groups, including those with substantial income and financial resources and those with little or no income and inadequate financial resources; and

WHEREAS, developments in computer and communications technology have enabled lenders to offer consumers instant, short-term, high interest loans without requirements for credit establishment or verification; and

WHEREAS, concerns have been raised as to whether the check cashing industry is adequately regulated by the State under current law; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the House of Representatives concurring, that the Director of Commerce and Consumer Affairs is requested to establish and to lead a committee comprised of representatives from all segments of the lending industry and representatives from consumer groups to determine what, if any, legislation is necessary to provide a healthy economic environment for both lenders and consumers; and

BE IT FURTHER RESOLVED that the above committee:

(1) Study other states' laws relating to lending practices and the Council of State Governments' Suggested State Legislation;

(2) Study the lending industry's best practices;

(3) Determine what short-term loan alternatives would be available to consumers if deferred deposit loans were prohibited in the State; and

(4) Review lending complaints received by the Department of Commerce and Consumer Affairs; and

BE IT FURTHER RESOLVED that the Director of Commerce and Consumer Affairs is requested to report the committee's findings and recommendations, including suggested legislation, to the Legislature no later than twenty days before the convening of the Regular Session of 2006; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor and the Director of Commerce and Consumer Affairs.

 

 
 

OFFERED BY:

_____________________________

Report Title:

Lending Practices Study