6-1260
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6-1260. Deferred presentment; amount; fees; loans to members of military service A. The licensee may accept for deferred presentment or deposit a check with a face amount of at least fifty dollars but not more than five hundred dollars, excluding the fees permitted in subsection F of this section. B. For each check the licensee accepts for deferred presentment or deposit, the licensee and the customer shall sign a written agreement that contains the name or trade name of the licensee, the transaction date, the amount of the check, the amount to be paid by the maker, a statement of the total amount of the fees charged, expressed both as a dollar amount and as an effective annual percentage rate, a disclosure statement that complies with state and federal truth in lending laws and a notice to the customer as prescribed in subsection C of this section. The written agreement shall expressly require the licensee to defer presentment or deposit of the check until a specified date. C. A licensee shall provide a notice in a prominent place on each written agreement that specifies that no customer may have outstanding more than one deferred presentment service agreement at one time and the face amount, exclusive of any fees, cannot be more than five hundred dollars. A licensee shall ask every customer who seeks deferred presentment services whether that customer has any outstanding checks payable to other licensees. D. A licensee may rely on the customer's representation of whether the customer has any outstanding checks for deferred presentment held by other licensees. E. The maker of a check has the right to redeem the check from the licensee before the agreed on date of presentment or deposit if the maker pays the licensee the amount of the check. F. A licensee shall not directly or indirectly charge any fee or other consideration for accepting a check for deferred presentment or deposit that is more than fifteen per cent of the face amount of the check for any initial transaction or any extension. G. A licensee may impose the fee prescribed in subsection F of this section only once for each written agreement. The fee is earned on execution of the written agreement and is not subject to any reimbursement even if the maker redeems the check pursuant to subsection E of this section. H. The fee charged by the licensee is not interest for purposes of any other law or rule of this state. I. Except as otherwise provided in this subsection, a person may extend the presentment or deposit of a check not more than three consecutive times. For each extension the customer and the licensee shall terminate the previous agreement and sign a separate agreement. During an incomplete transaction the customer may not receive any additional monies from the licensee. The licensee may charge a fee as prescribed in subsection F of this section for each extension. A person who is a member of the military service of the United States or the member's spouse may not extend the presentment or deposit of a check. If a customer has completed a deferred presentment transaction with the licensee, the customer may enter into a new agreement for deferred presentment services with the licensee. A transaction is completed when the customer's check is presented for payment, deposited or redeemed by the customer for cash. J. If a check is returned to the licensee from a payer financial institution due to insufficient funds, a closed account or a stop payment order, the licensee may use all available civil remedies to collect on the check including the imposition of the dishonored check service fee prescribed in section 44-6852. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal prosecution pursuant to title 13, chapter 18. K. Before engaging in a deferred presentment transaction, a licensee shall provide to a customer who is a member of the military service of the United States or the member's spouse a written statement that clearly and conspicuously states the prohibited practices and requirements prescribed in subsection L of this section. L. If lending to a member of the military service of the United States or the spouse of a member of the military service of the United States, a licensee: 1. Shall not garnish any military wages or salary. 2. Shall not conduct any collection activity against a customer who is a member of the military service of the United States or the spouse of the member during the member's deployment to a combat or combat support posting or during active duty service by a member of the national guard or any military reserve unit of any branch of the armed forces of the United States. 3. Shall contact the employer of a member of the military service of the United States about a deferred presentment debt of the member or the member's spouse. The contact allowed by this paragraph shall only be a notice for informational purposes and shall not be an attempt to collect on a loan made to the member or the member's spouse. A licensee shall not attempt to collect on a loan made to a member of the military service of the United States or the member's spouse through the member's chain of command. 4. Shall not conduct a deferred presentment transaction with a member of the military service of the United States or the member's spouse in any location that the member's commanding officer prohibits the member or the member's spouse from transacting deferred presentment business. 5. Is bound by the terms of any repayment agreement that the licensee negotiates with respect to the customer through military counselors or third party credit counselors. |