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• Introduced by Rep. Sharon Nelson, (D-Vashon) (D) on January 27, 2009, to modify fees and installment plan assistance programs for borrowers at risk of defaulting on small loans. This bill, among other things, changes definitions related to small loans and changes the termination dates for small loans. In addition, the bill requires a lender to allow a borrower to participate in an installment repayment plan and sets guidelines and penalties for use of installment plans. Also modified is the application of interest for small loans.
  • Referred to the House Financal Institutions & Insurance Committee on January 27, 2009.
    • Substitute offered in the House on February 17, 2009, to restricta borrower from taking out more than $700 at any time. A borrower may not borrow more than 30 percent of his or her gross monthly income. The provision regarding the reduction of the fee from 15 percent or the borrowed amount to 10 percent is removed. The minimum term of 60 days is removed. The minimum term of a loan is the borrower's next paycheck unless that is less than seven days. If it is less than seven days, the minimum term is date of the next following paycheck. The payment plan is renamed an installment plan. The term of an installment plan is changed from the one month per $100 borrowed calculation. Instead, a two-tiered loan term system is established. A 5 percent fee is no longer allowed for the installment plan. Provisions regarding the enforcement system are added. The substitute passed in the House by voice vote on February 17, 2009.
  • Referred to the House Rules Committee on February 19, 2009.
    • Amendment offered by Rep. Sharon Nelson, (D-Vashon) (D) on March 9, 2009, to make the following changes: definitions of "installment plan" and "loaned amount" are added. The definitions of "default" and "paid" are modified. A licensee is prohibited from making a small loan to a borrower if making that small loan would result in a borrower receiving more than eight small loans from all licensees in any twelve-month period. An installment plan is no longer automatically triggered by a borrower's inability to repay. A licensee that has been told by a borrower that the borrower will not be able to repay the loan must inform the borrower that the borrower may convert the small loan to an installment plan. The licensee must convert the loan to an installment plan upon the request of the borrower. A licensee is prohibited from making a small loan to a borrower that is in an installment plan or is in default on a small loan. This prohibition lasts for two years after the small loan was made or until the loan or installment plan is paid in full, whichever is earlier. An application form for a small loan must include specific disclosure about the installment plan to the borrower. Provisions regarding the default on an installment plan are struck. A licensee may not charge a fee for a dishonored check in connection to a payment plan but may charge a one-time $25 fee if the borrower defaults on the payment plan. A licensee may take postdated checks for the installment plan. The effective date is delayed to January 1, 2010. The amendment passed in the House by voice vote on March 9, 2009.
    • Amendment offered by Rep. Sherry Appleton, (D-Poulsbo) (D) on March 9, 2009, to remove the loan limit of eight small loans per twelve month period is removed. A licensee may not make a small loan within thirty days or the payment of a prior small loan. The amendment failed in the House by voice vote on March 9, 2009.
    • Amendment offered by Rep. Barbara Bailey, (R-Oak Harbor) (R) on March 9, 2009, to remove thirty days. The amendment passed in the House by voice vote on March 9, 2009.
• Passed in the House (84 to 10) on March 9, 2009. [Vote Details and Comments]
• Received in the Senate on March 11, 2009.
  • Referred to the Senate Labor, Commerce & Consumer Protection Committee on March 11, 2009.
  • Referred to the Senate Rules Committee on March 30, 2009.
    • Amendment offered by Sen. Don Benton, (R-Vancouver) (R) on April 13, 2009, to clarify for small loans, a borrower may only borrow up to $700 or 30% of his or her gross monthly income at any one time. DFI is to create a database. The personal information in the database is not subject to public disclosure. The bill takes effect date of January 1, 2010. The amendment passed in the Senate by voice vote on April 13, 2009.
    • Amendment offered by Sen. Craig Pridemore, (D-Vancouver) (D) on April 13, 2009, to amend the definition of successive loan and to clarify that a licensee may not make a small loan to a borrower until 30 days after a previous small loan, by any licensee, is paid. The amendment failed in the Senate by voice vote on April 13, 2009.
    • Amendment offered in the Senate on April 13, 2009, to limit a borrower to a maximum of 6 small loans per year. The amendment failed in the Senate by voice vote on April 13, 2009.
• Passed in the Senate (40 to 8) on April 13, 2009. [Vote Details and Comments]
• Received in the House on April 14, 2009, House doesn't agree to Senate amendments, asks the Senate to reconsider. Passed in the House by voice vote on April 14, 2009.
• Received in the Senate on April 22, 2009, Senate recedes from amendments.
• Passed in the Senate (26 to 23) on April 21, 2009. [Vote Details and Comments]
• Signed by Gov. Christine Gregoire on May 15, 2009, requires a minimum term for small loans. Limits the amount of money in small loans that may be borrowed by a consumer at any one time and as a percentage of gross monthly income. Creates a new installment plan for borrowers. Authorizes a real-time enforcement system .