| Governor Gregoire has signed into law the Department of Financial Institutions (DFI) requested amendments to the payday lending law. Included among a number of new enforcement provisions is the requirement that online payday lenders be licensed before doing business in Washington.
Senator Jean Berkey (D-Everett) sponsored Senate Bill 5199 and was instrumental in keeping the new consumer protections alive and moving forward. The bill amends the current Check Casher and Sellers Act (RCW 31.45) and expands DFI’s payday lending enforcement authority. Going forward, anyone who offers a small loan to a person physically located in Washington must have a small loan endorsement. This includes loans made through the use of the internet, facsimile, telephone, kiosk, or other means. In the consumers’ favor, this means that if a payday lender violates the law, the consumer does not have to pay back the loan.
The enhancement makes the enforcement tools for the check cashers and sellers law comparable to those for all other non-depository laws enforced by DFI. The expansion includes the enhanced ability to regulate against unlicensed Internet lending, forgery, fabrication of documents, bait and switch, false advertising, written and oral misrepresentations, and unlicensed activities. In addition to any other penalties for a violation, any transaction is uncollectible and unenforceable. |
