BOISE — A Senate Committee has approved a bill that will negate all payday loans issued to residents of Idaho by payday loan companies not having an Idaho payday loan license.

The bill would invalidate any loan provided by an unlicensed payday lender.

Republican Sen. Shawn Keough told the Senate Commerce Committee Thursday that the bill would be a powerful consumer protection tool because the state Department of Finance could issue cease and desist orders and sue unlicensed payday lenders.

The bill passed with a unanimous voice vote. It now goes before the full Senate.

This proposed Idaho payday loan bill will address the multitude of Internet based payday loan lenders doing business in Idaho.

Idaho Payday loan law Senate Bill 1093

PAY DAY LOANS – Amends existing law to provide that a lender which is not a supervised financial organization may not deposit a consumer’s check, withdraw funds electronically from a consumer’s account or otherwise collect the principal of, interest on or any fees or charges for a loan subject to this part if at the time the lender makes the loan, the lender does not have a current and valid license to make loans in this state.

Idaho bill text:

Idaho statement of purpose:

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