The bill, known as the Predatory Loan Prevention Act, aims to enhance consumer protection against predatory lending practices in Washington State. It amends existing laws to clarify that all loans made to residents or individuals physically located in the state are subject to the regulations outlined in the chapter. The bill introduces new prohibitions against evading these regulations through deceptive practices, such as disguising loans as sales or leaseback transactions. It also establishes that individuals or entities that maintain a predominant economic interest in a loan are considered lenders, regardless of their claimed role in the transaction.

Additionally, the bill expands the list of exemptions from the chapter's requirements, replacing the term "entities" with "any person" in several instances, thereby broadening the scope of who may be exempt from these regulations. It also introduces new provisions that impose strict penalties for violations, including the requirement for refunds of nonthird-party fees if a transaction is found to be in violation of the licensing requirements. The act is designed to apply prospectively, meaning it will not affect loans issued prior to its effective date unless those loans are renegotiated or modified afterward.

Statutes affected:
Original Bill: 31.04.015, 31.04.025, 31.04.027, 31.04.035
Substitute Bill: 31.04.025, 31.04.027, 31.04.035
Bill as Passed Legislature: 31.04.025, 31.04.027, 31.04.035
Session Law: 31.04.025, 31.04.027, 31.04.035