Ige to sign landmark payday loan reform bill

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June 16, 2021, 9:06 a.m. HST

Governor David Ige. PC: (File January 25, 2021) Courtesy of Governor David Ige’s office.

Governor David Ige will sign House Bill 1192 – a landmark payday loan reform – which will be signed into law on Wednesday, June 16 at Washington Place.

HB 1192 helps working families and people who probably don’t have a checking or savings account, or a credit card to pay for emergency and/or recurring expenses. Under Hawaii’s current payday loan laws, borrowers receive short-term loans with their uncashed paycheck as collateral.

“For too long, payday loans have trapped so many of our most financially vulnerable people in a cycle of debt from which they cannot escape. This legislation not only corrects this grave injustice, but more importantly allows access to needed capital while providing a pathway to greater financial autonomy and opportunity,” said Representative Aaron Ling Johanson, Chairman of the House Consumer Protection Committee. & Commerce and author of the bill.

HB1192 is phasing out the current unregulated payday loans and creating a regulated and licensed installment loan system. Interest rates and monthly fees are capped, ultimately making loans less expensive for the consumer.

Governor Ige signs five bills today. A ceremony at 11 a.m. includes the signing of: SB697 relating to the month of Kalaupapa and SB939 relating to Juneteenth Day. A ceremony at 11:30 a.m. includes the signing of: HB940 relating to securities; SB793 on minimum wage; and HB1192 relating to consumer protection.

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The signing of the bill will also be broadcast on the governor’s Facebook page.

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