Vetoed by Governor Michael Dunleavy

Vote Smart's Synopsis:

Vote to pass a bill that places a ban on payday loans - restrict loans to a maximum 36% annual percentage rate

Highlights:

• Defines mutual savings banks as financial institutions and subjects them to applicable regulations (Sec. 2-15).

• Specifies and expands the circumstances under which a party shall be considered a lender for the purpose of licensing requirements (sec. 4).

• Authorizes the Alaska Department of Commerce, Community, and Economic Development to participate in the national registry and collect information accordingly (Sec. 5-7).

• Repeals existing limits on the number of places of business that a licensee may maintain under one office license (Sec. 8).

• Repeals a requirement that the department shall examine the affairs, business, office, and records of each licensee every 18 months and authorizes the department to engage in such examinations as often as is necessary (Sec. 9).

• Repeals exemptions relating to loan interest rates and establishes a flat interest rate cap of 3% for all permitted loans below $25,000 (Sec. 10). 

• Specifies that interest rates shall be calculated by including all fees, costs, and premiums charged (Sec. 10-16).

• Specifies the circumstances under which loans in excess of $25,000 made legally in territories outside Alaska may be enforced (Sec. 10).

• Prohibits license from threatening borrowers with criminal prosecution as a result of the borrower's default (Sec. 12).

• Repeals exemptions relating to pawnbrokers issuing loans under $750 (Sec. 13).

• Specifies that the aforementioned provisions shall take effect July 1, 2025 (Sec. 18).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that places a ban on payday loans - restrict loans to a maximum 36% annual percentage rate

Highlights:

• Defines mutual savings banks as financial institutions and subjects them to applicable regulations (Sec. 2-15).

• Specifies and expands the circumstances under which a party shall be considered a lender for the purpose of licensing requirements (sec. 4).

• Authorizes the Alaska Department of Commerce, Community, and Economic Development to participate in the national registry and collect information accordingly (Sec. 5-7).

• Repeals existing limits on the number of places of business that a licensee may maintain under one office license (Sec. 8).

• Repeals a requirement that the department shall examine the affairs, business, office, and records of each licensee every 18 months and authorizes the department to engage in such examinations as often as is necessary (Sec. 9).

• Repeals exemptions relating to loan interest rates and establishes a flat interest rate cap of 3% for all permitted loans below $25,000 (Sec. 10). 

• Specifies that interest rates shall be calculated by including all fees, costs, and premiums charged (Sec. 10-16).

• Specifies the circumstances under which loans in excess of $25,000 made legally in territories outside Alaska may be enforced (Sec. 10).

• Prohibits license from threatening borrowers with criminal prosecution as a result of the borrower's default (Sec. 12).

• Repeals exemptions relating to pawnbrokers issuing loans under $750 (Sec. 13).

• Specifies that the aforementioned provisions shall take effect July 1, 2025 (Sec. 18).

Full Bill Text