HB 1048 Hawaii House · 2026 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 Dec 8, 2025

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What changed between versions

HB1048 → HB1048_HD1 · 4 edits

MODERATE

This bill updates Hawaii's installment loan laws to clarify definitions, adjust maintenance fee calculations, and introduce a temporary sunset provision. The changes aim to modernize the statute by removing outdated terms and ensuring fees are calculated fairly on a daily basis.

Scope change

The bill clarifies the scope of the law by replacing the term 'consumer loan' with 'installment loan' and explicitly defining who counts as a lender or agent to ensure consistent application of the rules.

DEFINITION

Replaced the term 'consumer loan' with 'installment loan' throughout the text and updated the definition of 'installment lender' to include agents for third parties.

REQUIREMENT

Changed monthly maintenance fee calculations to use daily factors (e.g., 83 cents per day) instead of fractions of a month to prevent overcharging.

Updated the debit card convenience fee limit from a generic 'five-dollar' amount to a specific '$5' fee.

TIMELINE

Added a sunset clause that will repeal the new provisions on June 30, 2028, and set the effective date to July 1, 3000, allowing the legislature to review the law's impact.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

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