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View NCGA Bill Details2011-2012 Session
Senate Bill 761 (Public) Filed Tuesday, April 19, 2011
Intro. by East.

Status: Ref To Com On Commerce (Senate Action) (Apr 20 2011)

Bill History:

S 761

Bill Summaries:

  • Summary date: Apr 20 2011 - View Summary

    Identical to H 810, filed 4/6/11.

    Adds definition of "Consumer Price Index" to GS 53-165. Add to definition of "other business" permitted of lenders in GS 53-172. Amends maximum loan charges and fees for personal installment loans found in GS 53-173 by (i) setting maximum amount of loans at $2,000 (was $3,000), (ii) setting the maximum account handling charge at $3 per $100 of loan amount, (iii) setting the loan processing fee at 10% of the loan amount not to exceed $100 (was 5% not to exceed $25), (iv) indexing these caps to the consumer price index, (v) capping the interest on a money judgment on a loan made subject to this section at the annual percentage rate of the loan contract as computed under the federal Truth in Lending Act, (vi) capping interest after the maturity of a loan at the annual percentage rate of the loan contract as computed under the federal Truth in Lending Act, (vii) prohibiting other charges and fees on loans subject to this section, (viii) limiting loans made to consumers who already have outstanding loans with the same lender, (ix) requiring the partial refund of certain fees and charges if the loan is paid in full prior to the term expiration date, and, (x) permitting a consumer to terminate a loan contract within three days by returning the borrowed funds to the lender. Amends 53-175 to limit the maximum fee for returned checks to the greater of $30 or the amount permitted under GS 25-3-506 (currently $25). Amends 53-176 by (i) raising cap on installment loans to $15,000 (was $10,000), (ii) limiting monthly interest on installment loans to 2.5% for balances below $5,000, 2% for balances between $5,000 and $10,000, and 1.5% on remaining balance (was 30% annually for balances up to $7,500 and 18% annually on remaining balance), (iii) mandates that interest on installment loans not be compounded, (iv) caps closing fees for installment loans at $35 for loans up to $1,750 and 2% of the loans above that amount, and, (v) indexes the caps on fees and loan amounts to consumer price index according the same procedure created in GS 53-173. Amends GS 53-177 to cap late fees at $15 for loans under GS 53-173 and at the greater of 5% of the payment or $20 for loans made under GS 53-176. Amends 53-180 by restricting the time and payment limitations for loans issued under GS 53-173 as follows: between 4 to 7 months for loans of $500 or less; no more than 13 months for loans between $500 and $1,000; no more than 19 months for loans between $1,000 and $1,500; and, no more than 25 months for loans greater than $1,500. Amends GS 53-181 to require a lender once per year to provide upon request and payment of a $25 fee a statement of information regarding the loan. Amends GS 53-186 to require the Commissioner of Banks to provide timely responses to borrowers and lenders concerning borrowers' complaints and inquiries and to develop an information pamphlet to be provided to borrowers by lenders as of January 1, 2012. Effective October 1, 2011.