Legal Status: Legal (Applies to check cashers only)
Citation:
Hawaii Rev. Stat. Ann. § 480F-1 et seq.
Loan Terms:
Maximum Loan Amount: $600
Loan Term: Max: 32 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot refinance or consolidate)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $20 NSF fee; Check Casher that accepts check passed on insufficient funds not entitled to recover damages
Criminal Action: Prohibited (Unless check returned due to closed account or stop-payment by maker)
Where to Complain, Get Information:
Regulator: Hawaii Department of Commerce and Consumer Affairs
Address: Consumer Resource Center, 235 S. Beretania Street, Rm 801 Honolulu HI 96813
Phone: (808) 587-3222
Fax: (808) 586-2640
Applicability: To any transaction in which a check casher refrains from depositing a personal check written by a customer until a date after the transaction date pursuant to a written agreement.
Exemptions: Does not apply to any person who is principally engaged in the bona fide sale of goods or services and who from time to time cashes items for a fee for not more than $2 or 2% of the amount of the check, whichever is greater; to any bank, or financial institution organized under the laws of the United States or any state or territory.
Required disclosures: Must post the fees charged in a conspicuous place in the business and a notice that complaints may be filed with the department of commerce and consumer affairs. Must also provide the consumer with written notice of the fees that is separate from and in addition to the posted notice. Must obtain written acknowledgment from the customer that written notice of the fees was provided and provide each consumer with a receipt documenting any and all fees charged. Deferred deposit transaction must be in writing and it shall contain the statement of the total amount of any fees charged, expressed both in U.S. dollar amount and as an annual percentage rate.
Permitted charges: Not to exceed 15% of the face amount of the check. Dishonored check fee cannot be more than $20.
Prohibited acts: No collateral products, e.g., insurance, can be sold. Deferred deposit cannot exceed 31 days. No collateral may be accepted to secure the loan. Face amount of the loan cannot exceed $300. A check casher cannot enter into another agreement with a consumer during a period of time that an earlier agreement is in effect. Cannot repay, refinance, or consolidate one transaction by or with the proceeds of another. Cannot take any action to collect on a check passed with insufficient funds except to charge and recover the dishonored check fee. Cannot prosecute customer for criminal violations unless the check is dishonored because of stopped payment on the check.
Private right of action: Any injured consumer may seek remedies allowed by Haw. Rev. Stat. § 480-13(b). Any violation of this act constitutes an unfair and deceptive trade practice under state law. Any person injured by a willful violation of the act may bring an action for the recovery of damages and seek to enjoin the violations. Plaintiff shall be awarded damages of not less than $1,000 or three times the damages, whichever is greater, reasonable attorney’s fees and costs.
Criminal/civil penalties: A willful violation is punishable by a fine of up to $500 and up to 30 days imprisonment. Penalties are cumulative with any other which are otherwise available for the same conduct.
