Ige to Sign Landmark Payday Lending Reform Bill into Law
Governor David Ige will sign House Bill 1192—landmark payday lending reform—into law, Wednesday, June 16 at Washington Place.
HB 1192 assists working families and individuals who likely do not have a checking or savings account, or credit card to pay for emergency and/or recurring expenses. Under Hawaiʻi’s current payday lending laws, borrowers receive short-term loans with their uncashed paycheck serving as the collateral.
“For too long, payday loans have trapped so many of our most financially vulnerable people in a cycle of debt that they cannot escape. This legislation not only corrects this serious injustice, but also and more importantly enables access to needed capital while providing a path to greater financial self-sufficiency and opportunity,” said Rep. Aaron Ling Johanson, House Consumer Protection & Commerce Committee Chair and author of the bill.
HB1192 phases out current unregulated payday loans and creates a licensed, regulated installment lending system. Interest rates and monthly fees are capped, making the loans ultimately less costly to the consumer.
Gov. Ige signs five bills into law today. An 11 a.m. ceremony features the signing of: SB697 relating to Kalaupapa Month and SB939 relating to Juneteenth Day. An 11:30 a.m. ceremony features the signing of: HB940 relating to Securities; SB793 relating to the Minimum Wage; and HB1192 relating to Consumer Protection.
The bill signing will also be streamed on the Governor’s Facebook page.