BILL REQ. #:  H-1399.1 

Read first time 01/30/09.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to alternatives to a small loan; and adding a new section to chapter 31.45 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 31.45 RCW to read as follows:
     (1) In addition to any other disclosure required under this chapter or by state or federal law, a licensee with a small loan endorsement must provide a disclosure statement that informs a potential borrower that possible alternatives to a small loan exist and that the borrower may qualify for other assistance or loans. The statement must:
     (a) Be a separate document;
     (b) Be in at least twelve-point type;
     (c) Be provided to the potential borrower along with or prior to an application;
     (d) Provide examples of possible alternatives and contact information, including:
     (i) The army emergency relief program;
     (ii) The navy-marine corps relief society quick assist loan program;
     (iii) The air force aid society falcon loan program;
     (iv) The coast guard mutual assistance program;
     (v) The diversion cash assistance program offered by the department of social and health services; and
     (vi) Other alternatives required by the director;
     (e) Provide a list of independent financial counseling agencies in the area or region; and
     (f) Be approved by the director prior to use. If the director later withdraws approval, the licensee must cease using the disapproved statement.
     (2) The director may adopt rules to implement this section.