§ 53-177.1. Electronic transaction fees.

339 words·~2 min read·/nc/chapter-53/53-177-1

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(a)The following definitions apply in this section:

(1)Affiliate. - In relation to a licensee, an entity that directly or indirectly controls, is controlled by, or is under joint control with the licensee.

(2)Control. - Any of the following:

a. Own, directly or indirectly, at least fifty percent (50%) of the capital of an entity.

b. Have the power to direct or cause the direction of the management of and set the policies of an entity.

(b)In addition to the recovery of other costs allowed under this Article, a licensee may collect from a borrower an amount not to exceed the actual cost of any fees charged by a non-affiliate third party for the following transactions:

(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.

(c)A licensee shall 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 the cost of third-party fees associated with the transaction.

(d)A licensee shall publish on its website and publicly display at all its retail locations a disclosure on whether a borrower will be charged for any third-party fees with regard to each available type of transaction for account payments and disbursements of loan proceeds. A licensee shall also provide this information as a separate disclosure to a borrower when the borrower establishes a loan account with the licensee.

(e)Nothing in this section prohibits a borrower from directly paying transaction-based fees to a non-affiliate third party for account payments and disbursements of loan proceeds. (2021-159, s. 1(a).)