Requires check cashing businesses to post deferred deposit agreement fees in a conspicuous place, provides a blank percentage to modify the maximum fee that a check cashing business may charge for a deferred deposit agreement, and requires check cashing and rapid anticipation loan businesses to register with the department of commerce and consumer affairs.

A BILL FOR AN ACT

SECTION 1. Chapter 480F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§480F- Registration program. All "check cashers", as that term is defined in section 480F-1, doing business in the State shall register with the department of commerce and consumer affairs. The registration shall include, but not be limited to, the following information:

The department of commerce and consumer affairs may adopt rules pursuant to chapter 91 to effectuate this section including registration, renewal, and other appropriate fees."

SECTION 2. Section 480F-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Rapid anticipation loan" means a loan that is provided to a consumer who anticipates receiving funds in the future, such as a loan that is made in anticipation of a tax refund."

SECTION 3. Section 480F-1, Hawaii Revised Statutes, is amended by amending the definition of "check casher" to read as follows:

""Check casher" means a person or entity that engages in the business of cashing checks for a fee[.] and, for the purposes of section 480F- , includes a person in the business of providing rapid anticipation loans."

SECTION 4. Section 480F-4, Hawaii Revised Statutes, is amended to read as follows:

"§480F-4 Deferred deposits, when allowed. (a) No check casher may defer the deposit of a check except as provided in this section.

(b) Each deferred deposit shall be made pursuant to a written agreement that [has been signed] shall:

(4) Not permit the check casher to accept collateral.

(c) The face amount of the check shall not exceed $600, and the deposit of a personal check written by a customer pursuant to a deferred deposit transaction may be deferred for no more than thirty-two days. A check casher may charge a fee for deferred deposit of a personal check in an amount not to exceed [fifteen] ten per cent of the face amount of the check. Any fees charged for deferred deposit of a personal check in compliance with this section shall be exempt from chapter 478.

(d) All fees, including annual percentage rates charged by a check casher under this section, shall be posted in a conspicuous place within the check casher's place of business.

[(d)] (e) A check casher shall not enter into an agreement for deferred deposit with a customer during the period of time that an earlier agreement for a deferred deposit for the same customer is in effect. A deferred deposit transaction shall not be repaid, refinanced, or consolidated by or with the proceeds of another deferred deposit transaction.

[(e)] (f) A check casher who enters into a deferred deposit agreement and accepts a check passed on insufficient funds, or any assignee of that check casher, shall not be entitled to recover damages in any action brought pursuant to or governed by chapter 490. Instead, the check casher may charge and recover a fee for the return of a dishonored check in an amount not greater than $20.

[(f)] (g) No amount in excess of the amounts authorized by this section and no collateral products such as insurance shall be directly or indirectly charged by a check casher pursuant or incident to a deferred deposit agreement."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.