AN ACT TO AMEND THE CONSUMER FINANCE ACT TO ALLOW THE RECOVERY OF ELECTRONIC TRANSACTION FEES IMPOSED BY THIRD PARTIES AND TO AMEND THE RETAIL INSTALLMENT SALES ACT TO CLARIFY THE DEFINITION OF OFFICIAL FEES.
Enacts GS 53-177.1, allowing a consumer finance licensee licensed under Article 15, the NC Consumer Finance Act, to collect from a borrower the actual cost of third party fees for (1) online debit card payments to the borrower's account; (2) in-person debit card payments to the borrower's account; (3) automated clearinghouse transaction payments to the borrower's account; (4) disbursement of loan proceeds via automated clearinghouse transactions; (5) disbursement of loan proceeds via prepaid debit cards or stored value cards; (6) disbursement of loan proceeds via electronic payments to the borrower's account at a financial institution or financial services company. Requires licensees to make available to borrowers at least one type of transaction for an account payment and at least one type of transaction for a disbursement of loan proceeds in which it will not seek to recover third party fee costs. Effective January 1, 2022, requires licensees to publish on its website and publicly display, and include in a separate statement for borrowers establishing loan accounts, a disclosure of charges for third party fees. Specifies that the statute does not prohibit a borrower from directly paying transaction-based fees to a non-affiliate third party for account payments and disbursements of loan proceeds. Effective October 1, 2021, and applies to transactions occurring on or after that date.
Amends GS 25A-10 to refer to fees or charges prescribed by law that actually are or will be paid by the seller (was, paid to public officials) related to security interests in a consumer credit sale in the definition of official fees, as the term applies to GS Chapter 25, which governs consumer credit sales. Amends GS 25A-15 concerning finance charge rates for consumer credit installment sale contracts. Add that official fees under GS 25A-10, as amended, are included in the amount financed to the extent payment is deferred by the seller, and are excluded from the finance charge. Makes technical corrections to the definition of residential manufactured home under subsection (f) to refer to a manufactured rather than mobile home, as defined by GS 143-145 (was, more specifically subdivision (7), which defines manufactured home) that is used as a dwelling. Makes technical and clarifying changes. Effective October 1, 2021.