Louisiana HB 221: CONSUMERS: Regulates consumer credit loans and transactions

Bill Text

HLS 20RS-491 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 221
BY REPRESENTATIVE JORDAN
CONSUMERS: Regulates consumer credit loans and transactions
1 AN ACT
2 To amend and reenact R.S. 9:3578.3(3) through (6), 3578.4(A)(1), 3578.5, and 3578.6(A)(7)
3 and to enact R.S. 9:3537, 3578.3(7), and 3578.6(A)(9) and (C), relative to consumer
4 credit transactions; to provide relative to preliminary check holding; to provide for
5 definitions; to provide relative to refunds; to provide relative to time limitations; to
6 provide for fees; to provide for prepayment; to provide for rebates; to provide for
7 deferred presentment transactions; to provide for small loans; to provide relative to
8 creditor provisions; to provide for interest; to provide for prohibitions; to provide
9 relative to evasion; to provide for penalties; and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 9:3578.3(3) through (6), 3578.4(A)(1), 3578.5, and 3578.6(A)(7) are
12 hereby amended and reenacted and R.S. 9:3537, 3578.3(7), and 3578.6(A)(9) and (C) are
13 hereby enacted to read as follows:
14 §3537. Prohibition; check holding
15 With respect to a consumer credit transaction, an extender of credit shall not
16 accept a check, as defined in R.S. 9:3516, from the issuer and agree to hold the check
17 for a period of time in exchange for payment to the issuer.
18 * * *
19 §3578.3. Definitions
20 As used in this Chapter, the following terms have the following meanings
21 ascribed to them:
22 * * *
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HB NO. 221
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1 (3) "Interest" means all charges and fees assessed, payable directly or
2 indirectly, including fees pursuant to R.S. 9:3530(C) in connection with or as a
3 condition of a deferred presentment transaction or small loan.
4 (3)(4) "Licensee" means a person licensed pursuant to this Chapter that
5 offers deferred presentment transactions or small loans, or both.
6 (4)(5) "Partial payment" means a payment of fifty dollars or more on a
7 deferred presentment transaction or small loan.
8 (5)(6) "Prepayment" means payment in full of the deferred presentment
9 transaction or small loan amount prior to the end of the term of that transaction or
10 loan.
11 (6)(7) "Small loan" means a consumer loan, as defined in R.S. 9:3516, of
12 three hundred fifty dollars or less, made for a term of sixty days or less.
13 §3578.4. Finance charge and fees
14 A.(1) In conjunction with a deferred presentment transaction or small loan
15 Notwithstanding any other provision of law, a licensee may charge a fee not to
16 exceed sixteen and seventy-five one hundredths percent of the face amount of the
17 check issued or in the case of a small loan, the equivalent rate of interest, provided
18 however that such fee or interest does not exceed forty-five dollars, regardless of the
19 name or type of charge thirty-six percent interest annually. Any transaction or loan
20 made or collected in violation of this Paragraph is void and the licensee shall not
21 have the right to collect, receive, or retain any principal, interest, fees, or other
22 charges.
23 * * *
24 §3578.5. Rebate upon prepayment
25 Upon the prepayment in full of a deferred presentment transaction or small
26 loan, during the first five days of the term of such transaction or loan only, the
27 licensee shall refund any and all unearned charges by a method no less favorable to
28 the consumer than the actuarial method, less twenty dollars of the original fee, which
29 shall be considered earned and shall not be subject to refund. Should the consumer
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HB NO. 221
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1 make prepayment after the first five days of the term of the transaction or loan, the
2 licensee shall not be required to make any refund.
3 §3578.6. Prohibited acts
4 A. A licensee shall not:
5 * * *
6 (7) Renew or roll over a deferred presentment transaction or small loan.
7 However, a licensee may accept a partial payment of twenty-five percent of the
8 amount advanced plus fees charged and enter into a new deferred presentment
9 transaction or renew the small loan for the remaining balance owed. Once a deferred
10 presentment transaction or small loan has been completed, a consumer may enter
11 into a new transaction or loan with the licensee. A deferred presentment transaction
12 or small loan shall be considered completed when the amount advanced has been
13 paid in full by the consumer.
14 * * *
15 (9) Engage in any device or subterfuge intended to evade the requirements
16 of this Chapter through any method, including but not limited to mail, telephone,
17 internet, or any electronic means, or by doing any of the following:
18 (a) Offering, making, assisting a borrower to obtain, or brokering a deferred
19 presentment tra