HB 1913 (Rep. Kannady/Sen. Leewright), the Oklahoma Small Loan Act, would create a new predatory loan product in Oklahoma, known as a Small Loan. These loans would allow interest to be charged at an annual rate of over 200 percent, which is four times more than what can be charged under current law. Like payday loans, these loans are designed to trap people in unaffordable debt.

Protecting consumers from dangerous financial products is a long-standing role of state government. HB 1913 would strike down existing rate caps and put the financial health of economically vulnerable Oklahomans at greater risk. There is simply no need in Oklahoma for another high-cost predatory loan product.

Where Things Stand (as of 3/25/17)

HB 1913 passed the House of Representatives on a 59-31 vote on March 13th. You can see how your Representative voted here.  The bill now moves to the Senate, where it has been assigned to the Senate Business, Commerce and Tourism Committee . The Senate will have between March 27th and April 13th to hear HB 1913 in committee.

What You Can Do

There are several things you can do to fight HB 1913. You can use the talking points below to help craft your message. If you or someone you know has been affected by high-cost loans, please share your story.

  1. Contact Senate Business, Commerce and Tourism Committee chair Sen. Dan Newberry and ask that he not hear HB 1913 in committee.  newberry@oksenate.gov  (405) 521-5600
  2. Contact Sen. James Leewright, the Senate author of HB 1913 and express your opposition to HB 1913. leewright@oksenate.gov  (405) 521-5528
  3. Contact members of the Business, Commerce and Tourism Committee and urge them to vote NO on HB 1913. 

Sen. Dan Newberry, Chair                                     newberry@oksenate.gov        (405) 521-5600

Sen. James Leewright, Vice Chair                         leewright@oksenate.gov        (405) 521-5528

Sen. Micheal Bergstrom                                        bergstrom@oksenate.gov      (405) 521-5561

Sen. Stephanie Bice                                               bice@oksenate.gov                (405) 521-5592

Sen. Nathan Dahm                                                 dahm@oksenate.gov              (405) 521-5551

Sen. Julie Daniels                                                    daniels@oksenate.gov            (405) 521-5634

Sen. Chris Kidd                                                       kidd@oksenate.gov                (405) 521-5563

Sen. Anastasia Pittman                                          pittman@oksenate.gov          (405) 521-5531

Sen. Paul Scott                                                       paul.scott@oksenate.gov       (405) 521-5522

Sen. Joseph Silk                                                      silk@oksenate.gov                  (405) 521-5614

Sen. John Sparks                                                    sparks@oksenate.gov             (405) 521-5553

Sen. Gary Stanislawski                                           stanislawski@oksenate.gov    (405) 521-5624

          4. Contact your own Senator to express your opposition to HB 1913.   You can find your Senator here. Be sure to identify yourself as a constituent.

Talking Points

Download the talking points as a fact sheet

This bill is not about providing consumers with better choices

  • HB 1913 would allow lenders to charge interest rates 6 times higher than what is allowed under current law.
  • These loans would simply provide the payday loan industry with a way to make more money by preying on economically vulnerable Oklahomans.

These loans would be unaffordable for many borrowers

  • HB 1913 allows lenders to charge 17 percent interest per month. This amounts to an annual interest rate of 204 percent.
  • A borrower would be required to make payments of $301 every month on a 12-month $1,500 loan. Over the course of the loan, a borrower will have paid cumulative interest of $2,108.

These loans are not a safety net – they are a debt trap

  • Payday lenders attract new customers with teaser rates – they can make loans without conducting any income checks to determine if the borrower can afford to repay the loan.
  • When a borrower cannot afford to repay the loan, the lender can offer a second loan to pay down the first loan. Each new loan comes with new fees and interest, dragging to borrower deeper into debt.

Consumers can get by without payday loans

  • Fifteen states (including Arkansas, Georgia, West Virginia, and North Carolina) and D.C. ban or severely restrict predatory lending and residents have found alternative ways to cover unexpected expenses.
  • 95 percent of would-be payday loan borrowers find other, more responsible ways to cover expenses (like borrowing from friends and family, cutting back on other expenses, or asking their employer for a salary advance). [PEW Research]

Leaders of the faith community strongly oppose HB 1913