The Predatory Loan Prevention Act seeks to strengthen consumer protections against predatory lending practices in Washington State by amending various sections of the Revised Code of Washington (RCW). Key changes include a revised definition of "loan" to cover a wider array of transactions, ensuring that all loans to individuals in Washington are subject to the chapter's authority and restrictions. The bill also introduces prohibitions against deceptive practices that attempt to evade regulatory requirements, such as misrepresenting loans as personal property sales or using electronic means to bypass interest rate limits.

Additionally, the bill modifies existing laws regarding consumer loan companies and licensing requirements, replacing "Entities" with "Any person" to broaden the scope of regulation. It clarifies that exemptions for making loans are limited to five or fewer transactions per year and specifies that individuals under the federal S.A.F.E. act or involved in residential construction do not qualify for this exemption. The legislation outlines various violations, including deceptive practices and non-compliance with licensing, and mandates that non-compliant loans must be refunded to borrowers. Overall, the bill aims to close loopholes in predatory lending and ensure fair lending practices in Washington State.

Statutes affected:
Original Bill: 31.04.015, 31.04.025, 31.04.027, 31.04.035