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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 284
BY SENATOR BROWN
FINANCIAL INSTITUTIONS. Provides relative to deferred presentments and small loans.
(8/1/14)
AN ACT1
To amend and reenact R.S. 9:3578.4(A)(2)(a) and 3578.8(C), and to repeal R.S.2
9:3578.8(D), relative to the Louisiana Deferred Presentment and Small Loan Act; to3
provide for interest rates; to provide for duties of the commissioner of the Office of4
Financial Institutions; to provide for the collection of certain data by the5
commissioner; to require the commissioner to submit a report to the Louisiana6
Legislature every two years; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 9:3578.4(A)(2)(a) and 3578.8(C) are hereby amended and reenacted9
to read as follows: 10
§3578.4. Finance charge and fees11
A. * * *12
(2) However, if the loan remains unpaid at contractual maturity, the licensee13
may charge one of the following:14
(a) An amount equal to the rate of thirty-six twenty percent per annum for15
a period not to exceed one year and beginning one year after contractual maturity,16
the rate shall not exceed eighteen percent per annum.17 SB NO. 284
SLS 14RS-82 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
* * *1
§3578.8. Powers of the commissioner; adoption of rules and regulations2
* * *3
C.(1) Beginning January 1, 2013, for a period of one year, 2014, the4
commissioner shall collect and compile information and data from licensees5
concerning the operation, function, and customers of deferred presentment6
transactions and small loan businesses.7
(2) The information and data collected by the commissioner from a licensee8
shall include but not be limited to the following:9
(a) The number of deferred presentment transactions and small loans issued10
quarterly.11
(b) The fees collected quarterly on deferred presentment transactions and12
small loans.13
(c) The location of the licensee's business.14
(d) The number of checks returned unpaid for any reason and the amount of15
the fee charged by the licensee for such checks.16
(3)(a) On March 1, 2016, and every two years thereafter, the17
commissioner shall submit a report to the legislature that shall include a18
summary of the information and data collected for the two previous years.19
Section 2. R.S. 9:3578.8(D) is hereby repealed.20
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. SB NO. 284
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(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))