Deferred Deposit Loan Act

The Deferred Deposit Loan Act regulates short-term consumer lending in which a lender advances funds against a personal check or similar instrument that is held and deposited at a later date. It sets the terms on which those loans may be made — written agreement and consumer notice requirements, authorized charges, a maximum loan amount, rules on renewal and on the form in which proceeds are delivered, and provisions on the endorsement, redemption, and dishonor of the instrument — while requiring lenders to post their charges, maintain records, and file annual reports. Lending is conditioned on holding a license and subject to examination and investigation, and the act further addresses unfair or deceptive practices, unconscionability, criminal culpability, and the use of multiple agreements.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.