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HB 1048 Hawaii House · 2025 Regular Session

RELATING TO INSTALLMENT LOANS.

Summary
Replaces the term "consumer loan" with the defined term "installment loan" for consistency throughout the installment loan chapter. Clarifies who is subject to the installment loan chapter. Requires loan maintenance fees to be prorated daily. Allows lenders to charge a convenience fee of up to $5 for debit card payments. Requires paper receipts only for in-person or cash payments and removes consumer names from receipts. Repeals the requirement for lenders to wait three days after a consumer fully repays a loan before issuing a new installment loan. Sunsets 6/30/2028. Effective 7/1/3000. (HD1)
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 21, 2025 Last action Feb 11, 2025
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What changed between versions

HB1048 → HB1048_HD1 · 9 edits
MAJOR
This bill updates Hawaii's installment loan laws to modernize regulations for digital lending, clarify fee structures, and improve consumer protections. It redefines who counts as a lender to include online and third-party arrangements, sets specific daily fee caps based on loan size, and adds new requirements for receipts and payment options.
Scope change
Expanded definition of 'installment lender' to explicitly cover online lending, third-party arrangements, and agents regardless of third-party exemption status, ensuring broader regulatory oversight of modern lending practices.
DEFINITION

Updated definition of 'installment lender' to include digital lending methods and third-party arrangements, closing regulatory gaps for online and referral-based loans.

REQUIREMENT

Established tiered monthly maintenance fee caps ($25, $30, $35) based on loan amounts with daily proration rules to prevent excessive fees.

Added requirement for written receipts for cash or in-person payments, removing consumer names from receipts for privacy.

Permitted lenders to charge up to $5 convenience fee for debit card payments while prohibiting mandatory use of this payment method.

Repealed the three-day waiting period after loan payoff before issuing a new loan, allowing faster access to credit.

Added prohibition on charging non-sufficient funds fees for rejected debit card payments.

Added requirement that loan amounts must be fully amortized over the loan term.

Added prohibition on requiring consumers to purchase add-on products like credit insurance.

TIMELINE

Set effective date of July 1, 3000, with repeal on June 30, 2028, creating a temporary regulatory framework.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
7
Key actions
1
Committee
3
Feb 11, 2025
Committee
Reported from CPC (Stand. Com. Rep. No. 426) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
lower
Feb 4, 2025
Lower · Passed
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Iwamoto, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kong, Lowen.
lower
Jan 23, 2025
Committee
Referred to CPC, FIN, referral sheet 3
lower
Jan 23, 2025
Introduced
Introduced and Pass First Reading.
lower
Jan 21, 2025
Introduced
Pending introduction.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Nadine Nakamura
Nadine Nakamura
DDemocratic
HI
15