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
House committee substitute makes the following changes to the 3rd edition.
Amends proposed GS 53-177(e) clarifying the ability of a lender to recover court costs and other fees incurred if the borrower, and the lender agrees, requests a voluntary dismissal of an action to recover a loan or if the loan, requiring the lender to obtain in writing from the borrower an acknowledgment that the borrower will be liable for statutory court costs and other reasonable and bonafide costs incurred in bringing the action. Deletes language that provided the process for such costs recovery if the loan is reduced to a judgment. Provides that magistrates, judges, and arbitrators can still award filing fees and fees for service of process incurred by a lender while bringing the civil action if a judgment is awarded, expressly authorizing the recovery of such costs and fees when the judgment is entered against the borrower.
Amends GS 53-180.1, Military service members limitation, making clarifying changes and amending the steps that the licensee can take that constitute reasonable precautions to prevent making loans in violation of the statute, providing that reasonable precaution can include obtaining a certificate from the Department of Defense Manpower Data Center (DMDC) that specifies that the prospective borrower is or is not a member of the armed forces (previously, only specified that a certificate from the Department of Defense would constitute reasonable precaution). Requires a computer screen copy of any failed request if the DMDC system is down. Also provides that verification of borrower's income will be considered reasonable precaution. Makes technical changes.
Changes the act's effective date to September 1, 2015 (was, July 1, 2015).