The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Brown (SB 284)
Present law provides that in conjunction with a deferred presentment transaction or small loan, a
licensee may charge a fee not to exceed 16.75% 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 $45.00, regardless of the name or type of charge.
Present law provides that if the loan remains unpaid at contractual maturity, the licensee may
charge one of the following:
(1)An amount equal to the rate of 36% per annum for a period not to exceed one year and
beginning one year after contractual maturity, the rate shall not exceed 18% per annum.
(2)A one-time delinquency charge of five percent of the unpaid amount of the delinquent
installment, or $10.00, whichever is greater.
Proposed law reduces the rate of interest that a licensee may collect after the contract matures for
a period of one year from 36% to 20% per annum.
Present law requires the commissioner of the Office of Financial Institutions to collect certain
data from the licensees for a period of one year beginning January 1, 2013.
Present law provides that the commissioner shall compile the information collected and submit
it, in an aggregate format, to the legislature by April 1, 2014.
Proposed law repeals this provision of present law.
Proposed law provides that beginning January 1, 2014, the commissioner shall collect certain
information and data from licensees concerning the operation, function, and customers of
deferred presentment transactions and small loan businesses.
Proposed law provides that on March 1, 2016, and every two years thereafter, the commissioner
shall submit a report to the legislature that shall include a summary of the information and data
collected for the two previous years.
Effective August 1, 2014.
(Amends R.S. 9:3578.4(A)(2)(a) and 3578.8(C); repeals R.S. 9:3578.8(D))