SB 179 (BR 1472) - J. Denton
AN ACT relating to deferred deposit transactions.
Create a new section of Subtitle 9 of KRS Chapter 286 to authorize the executive director of the Office of Financial Institutions to develop and implement a deferred deposit transaction database system by contract with an outside contractor or otherwise and to establish the minimum requirements for the database with authority to further specify the requirements by administrative regulation; prohibit public inspection or disclosure of the database system except by compulsory process in an action brought pursuant to this subtitle; authorize the provider that operates or administers the system to charge a fee not to exceed $1 per transaction for access or use of the system and authorize a licensee to pass on all or part of the fee to the borrower; require licensees to utilize the system, if implemented, at the time a transaction is conducted; require licensees to enter and update required information into the system; require licensees who cease making loans to submit a plan for continued compliance to the executive director within 10 days of cessation and require the executive director to promptly act upon the plan to ensure compliance; create a new section of Subtitle 9 of KRS Chapter 286 to authorize extended payment plans for outstanding deferred deposit transactions upon request of the customer and signature of the customer on an amendment to the written agreement; require the licensee to enter the written plan agreement information into the database system; require that a plan's terms allow the customer to repay the transaction is equal installments over no less than 60 days at no additional cost and require that the installments coincide with the date of the customer's receipt of regular income; authorize the customer to prepay the plan in full without penalty; provide that if a customer fails to make a payment on the due date in accordance with the plan the licensee may immediately collect the entire transaction balance; provide that the licensee may return the customer's prior held check with each payment and require a new check for the remaining balance under the plan.
Feb 13-introduced in Senate; to Banking & Insurance (S)
