Louisiana Revised Statutes 9:3578.4 – Finance charge and fees
Terms Used In Louisiana Revised Statutes 9:3578.4
- Contract: A legal written agreement that becomes binding when signed.
- Deferred presentment transaction: means a transaction made pursuant to a written agreement whereby a licensee:
(a) Accepts a check from the issuer dated as of the date it was written;
(b) Agrees to hold the check for a period of time not to exceed thirty days prior to negotiation or presentment; and
(c) Pays to the issuer of the check the amount of the check less the fee permitted in Louisiana Revised Statutes 9:3578.3
- Licensee: means a person licensed pursuant to this Chapter that offers deferred presentment transactions or small loans, or both. See Louisiana Revised Statutes 9:3578.3
- Small loan: means a consumer loan, as defined in Louisiana Revised Statutes 9:3578.3
A.(1) In conjunction with a deferred presentment transaction or small loan, a licensee may charge a fee not to exceed sixteen and seventy-five one hundredths percent of the face amount of the check issued or in the case of a small loan, the equivalent rate of interest, provided however that such fee or interest does not exceed forty-five dollars, regardless of the name or type of charge.
(2) If the loan remains unpaid at contractual maturity, the licensee may charge an amount equal to the rate of thirty-six percent per annum for a period not to exceed one year and beginning one year after contractual maturity, the rate shall not exceed eighteen percent per annum.
B. A licensee may contract with the borrower for reimbursement of the actual fee assessed to the licensee by the licensee’s depository institution as a result of a borrower’s check being returned for any reason. The fee shall be reimbursed to the licensee only once per check, regardless of the number of times the check was returned by the depository institution.
C. Except for reasonable attorney fees and costs awarded by a court, and fees allowed under La. Rev. Stat. 9:3529 and 3530(C), no other fees or charges may be assessed or collected on a deferred presentment transaction or small loan, including any other fees as may be provided for under Chapter 2 of this Code Title or any other law.
Acts 1999, No. 1315, §§1, 2, eff. Jan. 1, 2000; Acts 2003, No. 1283, §1; Acts 2010, No. 668, §1; Acts 2014, No. 636, §1, eff. Jan. 1, 2015.