Bill Summary for S 679 (2015-2016)

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Summary date: 

Mar 31 2015
S.L. 2015-179

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 679 (Public) Filed Thursday, March 26, 2015
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

Enacts new GS 53-177(e), recovery of costs, providing 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. 

Amends GS 53-178, No further charges; no splitting contracts; certain contracts void, providing that the prohibition on further or other charges or insurance commissions, whether directly or indirectly contracted for, extends to affiliates, parents, subsidiaries, or licensees under same ownership, management, or control. Make technical and clarifying changes. 

Repeals GS 53-179, concerning multiple-office loan limitations.

Amends GS 53-180.1 regarding the requirements and limitations of granting loans to military service members under the North Carolina Consumer Finance Act, providing that "military service member" includes a member of the Armed Forces who is on Active Guard and Reserve Duty as specified, with a rank of E4 or below (previously, did not include a rank cutoff). Deletes language which required licensees to confirm if the borrower is a military service member, and if so, document it in the individual's loan file. 

Makes organization changes deleting language previously found in GS 53-180.1(b)(6) and putting it in new GS 53-180.1(b1), Reasonable Precautions to Identify Covered Members. Adds clarifying language that reasonable precaution can include obtaining a copy of a Department of Defense certificate verifying the borrower is not in the military, obtaining a copy of a military service member's most recent leave and earnings statement, or verification of income.

Amends GS 53-190, Loans made elsewhere, raising the monetary limitations amount for loan contracts made outside this state that can still be enforced in North Carolina to $15,000 or less (was, $10,000 or less).  Further provides that if any lender or agent of a lender makes a loan contract outside this State in the amount of $15,000 or less (was, $10,000 or less), comes into the State to solicit or conduct activities in regard to such loan contract than they are subject to the requirements of GS Chapter 53, Article 15, the North Carolina Consumer Finance Act. 

Effective July 1, 2015.