Bill Summary for S 679 (2015-2016)
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| View NCGA Bill Details | 2015-2016 Session |
AN ACT TO PROVIDE FOR THE RECOVERY OF COURT COSTS AND RELATED COSTS UPON VOLUNTARY DISMISSAL AT THE REQUEST OF A BORROWER OF AN ACTION TO RECOVER PAYMENTS DUE UNDER A LOAN GRANTED UNDER THE NORTH CAROLINA CONSUMER FINANCE ACT OR UPON REDUCTION OF A LOAN MADE UNDER THE ACT TO JUDGMENT; TO CLARIFY THE MULTIPLE LOAN LIMITATIONS UNDER THE ACT; TO CLARIFY THE STATUTE RELATED TO WHETHER OR NOT BORROWERS ARE MEMBERS OF THE MILITARY PRIOR TO MAKING LOANS UNDER THE ACT; AND TO MAKE TECHNICAL AND CONFORMING CHANGES TO THE ACT.Intro. by Gunn, Newton, D. Davis.
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Bill summary
Senate amendments make the following changes to the 2nd edition. GS 53-177 has been amended by adding a new subsection (e), which provided that if a lender agrees, after a written request of the borrower, to take a voluntary dismissal of an action to recover payments due under a loan issued pursuant to this Article or if such a loan is reduced to a judgment, then the lender can recover the statutory court costs incurred as well as any other reasonable and bona fide costs incurred in the course of bringing action. Amendment #1 rewrites subsection (e) to include the provision that nothing in GS 53-177(e) is to be construed as authorizing the collection of attorneys' fees, which are otherwise prohibited under GS 53-180(e). Additionally provides that this section does not apply if the debtor raises an affirmative defense, in writing, to the action to collect a loan made under this Article.
Amendment #2 makes the following changes.
Amends GS 53-180.1(b1), as enacted in this act, which requires a licensee to take reasonable precautions to prevent making a loan to a covered military member in violation of this section. Provides additional steps that the licensee may take that constitute reasonable precautions. However, provides that nothing in this section is to be construed as requiring confirmation of covered military service member status for a borrower with whom the licensee has an established customer relationship, or for a borrower who provides verification from the borrower's most recent payroll or earnings statement that clearly indicates that the borrower is not a covered military service member.
Amendment #3 makes the following changes.
Amends GS 53-180.1(b) regarding the requirements that must be met in order for a licensee to grant a loan to a borrower who is a covered military service member. Provides that the licensee must provide notice to the borrower's Commanding Officer or Executive Officer before the loan is finalized. Notice to the borrower's company level commander or equivalent designee is no longer acceptable. Deletes all references to notice to a designee or company level commander.