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words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 272
BY SENATOR DORSEY
LOANS. Creates the Louisiana Tax Refund Anticipation Loan Act. (8/15/10)
AN ACT1
To enact Chapter 2-A of Code Title XII of Code Book III of Title 9 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S. 9:3579.1 through 3579.6, relative to the3
Louisiana Tax Refund Anticipation Loan Act; to provide for legislative intent; to4
provide for definitions; to provide for fees; to provide for notice; to provide for5
powers of the commissioner of financial institutions; and to provide for related6
matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 2-A of Code Title XII of Code Book III of Title 9 of the9
Louisiana Revised Statutes of 1950, to be comprised of R.S. 9:3579.1 through 3579.6, is10
hereby enacted to read as follows:11
CHAPTER 2-A. LOUISIANA TAX REFUND ANTICIPATION LOAN ACT12
§3579.1. Short title13
This Chapter shall be known and may be cited as the "Louisiana Tax14
Refund Anticipation Loan Act."15
§3579.2. Legislative intent16
It is the intent of the legislature to regulate refund anticipation loans.17 SB NO. 272
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
These loans meet a legitimate credit need for many borrowers; however, in1
order to protect borrowers from excessive charges, it is the intent of the2
legislature to place certain restrictions on lenders who make these loans.3
§3579.3. Definitions4
(1) "Borrower" means the person or taxpayer who receives the proceeds5
of a refund anticipation loan or to whom this service is offered and accepted.6
(2) "Commissioner" means the commissioner of the office of financial7
institutions.8
(3)"Licensee" means a person or entity licensed pursuant to this Chapter9
that offers, processes, receives or accepts for delivery an application for a10
refund anticipation loan to a borrower.11
(4) "Refund anticipation loan" means a consumer loan made by a12
licensee to a borrower in anticipation of the borrower's projected federal or13
state tax refund.14
§3579.4. Fees15
In conjunction with a refund anticipation loan, a licensee may charge a16
fee not to exceed sixteen and seventy-five one hundredths percent of the total17
amount of the check issued by the licensee; provided, however, that such fee18
does not exceed forty-five dollars, regardless of the name or type of charge.19
§3579.5. Posting of notice; toll-free number20
The commissioner shall provide a notice, which includes a toll-free21
number to the commissioner's office, which shall be posted, along with the fees22
as allowed under this Chapter, in a conspicuous manner by the licensee at the23
lending location.24
§3579.6. Powers of the commissioner; adoption of rules and regulations25
A. The commissioner may apply the provisions of Parts I, VII, VIII, IX,26
and X of Chapter 2 of this Code Title, the Louisiana Consumer Credit Law, for27
purposes of administering and regulating the activities of licensees and the28
provisions of this Chapter.29 SB NO. 272
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
B. The commissioner may adopt rules and regulations as he deems1
necessary to implement the purposes and provisions of this Chapter.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Proposed law defines a "refund anticipation loan" as a consumer loan made by a licensee to
a borrower in anticipation of the borrower's projected federal or state tax refund.
Proposed law defines a "licensee" as a person or entity licensed pursuant to proposed law
that offers, processes, receives or accepts for delivery an application for a refund anticipation
loan to a borrower.
Proposed law limits the fee to a maximum of 16.75% of the total amount of the check issued
by the licensee, not to exceed $45, regardless of the name or type of charge.
Proposed law requires the commissioner of financial institutions to provide a notice, which
includes a toll-free number to the commissioner's office, to be posted, along with the fees
as allowed under proposed law, in a conspicuous manner by the licensee at the lending
location.
Proposed law authorizes the commissioner to apply the provisions of the La. Consumer
Credit Law, for purposes of administering and regulating the activities of licensees and the
provisions of proposed law.
Proposed law authorizes the commissioner to adopt rules and regulations as he deems
necessary to implement the purposes and provisions of proposed law.
Effective August 15, 2010.
(Adds R.S. 9: 3579.1-3579.6)