Enacts new GS 53-281.1 to provide for and regulate deferred presentment transactions, defined as agreements where one party accepts a check from a customer and holds the check for a period of time before cashing or depositing. Permits licensed owners of check-cashing businesses (licensees) to charge a fee to defray certain operational costs when entering into deferred presentment transactions, provided the fee does not exceed 15% of the cash advance amount and the maximum cash advance amount does not exceed $500. Permits the customer to redeem his or her check before the date of deposit after paying the check amount to the licensee. Requires the licensee to cash or deposit the check within 35 days. Requires a licensee to provide the customer with a receipt and written explanation of all fees and other information related to the transaction in clear and understandable language. Prohibits a licensee from knowingly entering into a transaction with a customer who has another outstanding payday loan, or with a member of the Armed Forces or his or her spouse or dependent.
Permits a licensee to charge a fee for returned checks, but states that the customer will not be subject to criminal prosecution unless the customer attempted to misrepresent or defraud. Forbids a licensee from reporting to a credit reporting agency any customer's debt, and prevents the licensee from engaging in listed activities including unfair and deceptive trade practices. Specifies acceptable methods of payment for the cash advance, and requires licensee to wait 24 hours before entering into another transaction with a customer after full payment of the check. Prohibits rollover of a transaction, defined as the termination or extension of a transaction by the payment of an additional fee or the substitution of a new check. Allows an extended payment plan once a year, subject to the listed terms. States that deferred presentment transactions are not subject to the NC Consumer Finance Act.
Makes conforming changes.
Effective July 1, 2013.
Bill S 89 (2013-2014)Summary date: Feb 13 2013 - View summary