In Hawaii, there are laws specifically authorizing cash advance loans. For each payday loan transaction, creditors must submit a written contract. The agreement must contain a statement of all the charges and fees. A borrower with an outstanding loan balance cannot enter into a new agreement with a payday loan company. Under Hawaiian law, a lender is prohibited from initiating a civil suit to collect consumer debt and therefore cannot recover damages.
The maximum amount that a consumer can borrow is $300.
The maximum loan term that a cash advance store is permitted to have is 31 days.
Borrowers cannot rollover (consolidate or refinance) or extend a loan.
The maximum fee that a payday loan business can charge a consumer is 15% of the check's amount.
If the fee is $15 per $100 borrowed, that will equal an APR of 391.07%.