NEW DETAILS: HOW LOANS WILL CHANGE

The final version of H.B. 123, called the Fairness in Lending Act, does the following:

■ Limits loans to a maximum of $1,000.

■ Limits loan terms to 12 months.

■ Caps the cost of the loan — fees and interest — to 60 percent of the loan’s original principal.

■ States the interest rate would be no more than 28 percent, aligning with what voters upheld at the polls in 2008.

■ Prohibits loans under 90 days unless the monthly payment is not more than 7 percent of a borrower’s monthly net income or 6 percent of gross income.

■ Prohibits borrowers from carrying more than a $2,500 outstanding principal across several loans. Payday lenders would have to make their best effort to check their commonly available data to figure out where else people might have loans. The bill also authorizes the state to create a database for lenders to consult.

■ Allows lenders to charge a monthly maintenance fee that’s the lesser of 10 percent of the loan’s principal or $30.

■ Requires lenders to provide the consumers with a sample repayment schedule based on affordability for loans that last longer than 90 days.

■ Prohibits harassing phone calls from lenders.

■ Requires lenders to provide loan cost information orally and in writing.

■ Gives borrowers 72 hours to change their minds about the loans and return the money, without paying any fees.