Legal Status: Legal (Applies to check cashers only)
Citation:
D.C. Code Ann. § 26-301 et seq.
Loan Terms:
Maximum Loan Amount: $1000
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 10% of face amount + fee of $5: $0- $250; $10: $251-$500; $15: $501- $750; $20:$751-$1000
Finance Charge for 14-day $100 loan: $16.10
APR for 14-day $100 loan: 419%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Not Specified
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: D.C. Department of Insurance, Securities and Banking
Address: 810 First Street, NE, Suite 701 Washington DC 20002
Phone: (202) 727- 8000
Fax: (202) 535-1197
Applicability: To check cashers. Otherwise, consumer loan act applies. D.C. Code Ann. § 28-3301 et seq. (24% per year interest rate cap).
Exemptions: Banks, building and loan associations, credit unions, trust companies, savings and loan associations; the United States Postal Service; any person who cashes checks for free.
License requirements: Superintendent of the Office of Banking & Financial Institutions. Must apply in writing which includes certain information, pay a fee of $300, obtain a $5,000 bond, demonstrate the availability of capital of at least $25,000 at each location, demonstrate that business will be conducted honestly and fairly. Must renew annually.
Permitted charges: 10% of the face amount of the check; and, if the licensee enters into an agreement with the customer, may charge an additional fee (to cover verification, handling, and documentation processing) of no more than $5 on a personal check with a face amount of up to $250; $10–$250.01 to $500; $15–$500.01 to $750; $20–$750.01 to $1,000.
Prohibited Acts: Cannot accept post-dated checks; the personal check must bear an issue date of not later than the date the check is cashed and the deferred deposit agreement is originated; cannot hold a check for longer than 31 days following the issue date of the check.
Required acts: Must display license conspicuously; must give a receipt for the transaction.
Required disclosures: Must conspicuously post in both English and Spanish a schedule of fees and charges permitted under the act which must be approved by the Superintendent of the Office of Banking and Financial Institutions.
Loan terms: The aggregate face amount of the checks being held for deferred deposit cannot exceed $1000. Minimum amount cannot be less than $50.
Civil/Criminal Penalties: None.
Enforcement: Superintendent may seek a cease and desist order and seek to suspend or revoke a license.
Private right of action: None specified.
