| 3 | 3 | | By: Representatives Rhodes of the 124 |
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| 4 | 4 | | th |
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| 5 | 5 | | , Williams of the 148 |
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| 6 | 6 | | th |
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| 7 | 7 | | , Douglas of the 78 |
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| 8 | 8 | | th |
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| 9 | 9 | | , Chastain |
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| 10 | 10 | | of the 7 |
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| 11 | 11 | | th |
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| 12 | 12 | | , Barrett of the 24 |
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| 13 | 13 | | th |
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| 14 | 14 | | , and others |
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| 15 | 15 | | A BILL TO BE ENTITLED |
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| 16 | 16 | | AN ACT |
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| 17 | 17 | | To amend Chapter 1 of Title 13 of the Official Code of Georgia Annotated, relating to |
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| 18 | 18 | | 1 |
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| 19 | 19 | | general provisions regarding contracts, so as to revise provisions regarding convenience fees2 |
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| 20 | 20 | | for payment by electronic means; to provide for related matters; to repeal conflicting laws;3 |
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| 21 | 21 | | and for other purposes.4 |
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| 22 | 22 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 |
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| 23 | 23 | | SECTION 1.6 |
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| 24 | 24 | | Chapter 1 of Title 13 of the Official Code of Georgia Annotated, relating to general7 |
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| 25 | 25 | | provisions regarding contracts, is amended by revising Code Section 13-1-15, relating to8 |
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| 26 | 26 | | convenience fee and when appropriate, as follows:9 |
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| 27 | 27 | | "13-1-15.10 |
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| 28 | 28 | | (a) As used in this Code section, the term:11 |
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| 29 | 29 | | (1) 'Actual cost' means the amount paid by a lender to a third party or the amount |
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| 30 | 30 | | 12 |
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| 31 | 31 | | incurred by a third party for the processing of a payment made by electronic means. If13 |
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| 32 | 32 | | a lender or merchant is a subsidiary of an entity that processes payments made by14 |
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| 33 | 33 | | electronic means, the parent entity shall be considered a third party.15 |
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| 36 | 36 | | (2) 'Payment by electronic means' means the remittance of an amount owed through the |
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| 37 | 37 | | 16 |
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| 38 | 38 | | use of a credit card, debit card, electronic funds transfer, electronic check, or other17 |
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| 39 | 39 | | electronic method.18 |
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| 40 | 40 | | (b) In addition to any other charges, interest, and fees permitted by law and subject to the19 |
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| 41 | 41 | | terms and conditions of the debit card or credit card acceptance agreement, a lender or20 |
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| 42 | 42 | | merchant may collect a nonrefundable convenience fee from any person electing to utilize21 |
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| 43 | 43 | | an option of payment by electronic means. Such convenience fee shall be in an amount22 |
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| 44 | 44 | | that represents the actual cost to a lender or merchant; provided, however, that in lieu of23 |
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| 45 | 45 | | the actual cost, a lender or merchant is authorized to collect a convenience fee which does24 |
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| 46 | 46 | | not exceed the average of the actual cost incurred for a specific type of payment made by25 |
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| 47 | 47 | | electronic means for which such lender or merchant imposes a convenience fee, or a fee |
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| 48 | 48 | | 26 |
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| 49 | 49 | | of up to $5.00, whichever is greater.27 |
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| 50 | 50 | | (c) No convenience fee shall be charged unless a lender or merchant also provides a direct28 |
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| 51 | 51 | | payment option by check, cash, or money order or payment by electronic means in which29 |
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| 52 | 52 | | no convenience fee is imposed.30 |
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| 53 | 53 | | (d) Any lender or merchant imposing a convenience fee as provided for in this Code31 |
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| 54 | 54 | | section shall provide clear disclosure of such fee prior to imposition. Such notice shall32 |
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| 55 | 55 | | include the dollar amount of such fee, a statement that such fee is nonrefundable, and a33 |
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| 56 | 56 | | statement that such fee is charged for payment by electronic means.34 |
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| 57 | 57 | | (e) This Code section shall apply only to loans made pursuant to Chapter 1 of Title 7,35 |
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| 58 | 58 | | installment loans made pursuant to Chapter 3 of Title 7, retail installment and home36 |
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| 59 | 59 | | solicitation sales contracts entered into pursuant to Article 1 of Chapter 1 of Title 10, motor37 |
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| 60 | 60 | | vehicle sales financing contracts entered into pursuant to Article 2 of Chapter 1 of Title 10,38 |
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| 61 | 61 | | and insurance premium finance agreements entered into pursuant to Chapter 22 of Title 33;39 |
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| 62 | 62 | | provided, however, that a convenience fee authorized under this Code section shall not40 |
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| 63 | 63 | | constitute interest, an additional charge, a time price differential, a finance charge, or a41 |
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| 64 | 64 | | service charge within the meaning of Code Section 7-3-12, 10-1-4, 10-1-33, or 33-22-9.42 |
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