(a) A lender shall not lend an amount greater than $1,500 nor shall the amount financed exceed $1,500 by any one lender at any time to a consumer.

Terms Used In Hawaii Revised Statutes 480J-5

  • Consumer: means a natural person who is the buyer, lessee, or debtor to whom credit is granted in a transaction that is primarily for that natural person's personal, family, or household purposes. See Hawaii Revised Statutes 480J-1
  • Control: means the power, either directly or indirectly, to direct management or policies of a company, whether through ownership of securities, by contract, or otherwise. See Hawaii Revised Statutes 480J-1
  • Installment loan: means a loan made pursuant to this chapter. See Hawaii Revised Statutes 480J-1
  • Interest: means all charges payable directly or indirectly by a borrower to a licensee as a condition to a loan or an application for a loan, however denominated. See Hawaii Revised Statutes 480J-1
  • lender: means any person who is in the business of offering or making a consumer loan, who arranges a consumer loan for a third party, or who acts as an agent for a third party, regardless of whether the third party is exempt from licensure under this chapter or whether approval, acceptance, or ratification by the third party is necessary to create a legal obligation for the third party, through any method including mail, telephone, the Internet, or any electronic means. See Hawaii Revised Statutes 480J-1
  • Person: means an individual, sole proprietorship, partnership, corporation, limited liability company, limited liability partnership, or other association of individuals, however organized. See Hawaii Revised Statutes 480J-1
(b) Except as otherwise provided in section 480J-8, an installment lender shall take reasonable measures to ensure that no consumer has more than one installment loan outstanding at a time from any of the following:

(1) The installment lender;
(2) A person related to the installment lender by common ownership or control;
(3) A person in whom the installment lender has any financial interest of ten per cent or more; or
(4) Any employee or agent of the installment lender.
(c) An installment lender that receives written or electronic confirmation from each consumer that the consumer does not have any outstanding installment loans from the entities listed in subsection (b) as of the date the consumer enters into an installment loan with the installment lender shall be deemed to have met the requirements of this section.
(d) If a consumer’s spouse obtains an installment loan voluntarily and separately from the consumer, and subsequently the consumer obtains an installment loan voluntarily and separately from the consumer’s spouse, where neither the consumer nor the consumer’s spouse are coborrowers with each other on either loan, and the consumer’s action is documented in writing, either in the written agreement required under section 480J-3 or in a subsequent agreement, signed by the consumer, and retained by the lender, the secondary transaction shall not be considered a violation of this section.
(e) Upon a consumer’s payment in full of any installment loan, an installment lender shall wait a period of three days before the lender may make another installment loan to the same consumer.

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