BILL REQ. #: H-3625.1
| State of Washington | 59th Legislature | 2006 Regular Session |
Prefiled 12/22/2005. Read first time 01/09/2006. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to studying small loans; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that there is
inadequate information to determine the fairness or reasonableness of
fees and interest associated with small loans, also known as payday
loans.
The director of the department of financial institutions shall
study the economics and business models associated with small loans and
report the findings to the legislature. In the report, the director
must determine the break-even point of small loans, which is the amount
of fees or interest necessary to enable lenders to cover their costs of
doing business. The director may also examine other issues related to
small loans and include those issues in the report. The director may
include recommendations based upon the findings in the report. The
report must be submitted to the legislature by November 30, 2006.