Legal Status: Legal

Citation:
La. Stat. Ann. § 9:3578.1 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
APR for 14-day $100 loan: 650%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney’s Fees
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Louisiana Office of Financial Institutions
Address: P.O. Box 94095 Baton Rouge LA 70804
Phone: (225) 925-4660
Fax: (225) 925-4548

Applicability: To deferred presentment transaction in which the licensee accepts a check from the consumer dated on the date it was written and agrees to hold the check for a period not to exceed 30 days and pays the consumer the face amount less permitted fees. Otherwise, consumer credit code applies. La. Rev. Stat. Ann. § 9:3519 (36% per year on amounts up to $1400).

Licensing requirements: Must be licensed by the Office of Financial Institutions.

Permitted charges: Fee permitted of 16.75% of the face amount of the check but no more than $45. If unpaid at maturity, can charge an annual interest rate of 36% for the first year and 18% thereafter if still unpaid. Can only charge the amount of an insufficient funds fee as the licensee’s depository institution imposes and may only charge it once per check. If the deferred presentment transaction is prepaid in full within the first 5 days, the licensee must refund any and all unearned charges by a method no less favorable to the consumer than the actuarial method, less $20 of the original fee.

Prohibited acts: Cannot charge a fee greater than that allowed; sell any goods or services, e.g. insurance, without the approval of the commissioner; refuse a partial loan payment of $50 or more. Cannot renew or roll over the transaction BUT the licensee may do so after accepting a partial payment of 25% of the amount advanced plus fees charged and enter into a new transaction. It is unlawful for any licensee to threaten any customer with prosecution for any check accepted or to refer the consumer for prosecution. Cannot divide the transaction into multiple agreements for the purpose of obtaining higher fees.

Loan terms: Shall not exceed 30 days and amount paid to the consumer can be no more than $300.

Required disclosures: Must post a notice provided by the commissioner which includes a toll free number for its office and must post the fee schedule in a conspicuous place in the lending location.