§ 59-3108. Finance charges - Dishonored instruments.

A.  Regardless of any other law governing the imposition of interest, fees, loan finance charges or the extension of credit, a deferred deposit lender may charge a finance charge for each deferred deposit loan that does not exceed Fifteen Dollars ($15.00) for every One Hundred Dollars ($100.00) advanced up to the first Three Hundred Dollars ($300.00) of the amount advanced; for the advance amounts in excess of Three Hundred Dollars ($300.00), the lender may charge an additional finance charge of Ten Dollars ($10.00) for every One Hundred Dollars ($100.00) advanced in excess of Three Hundred Dollars ($300.00).  The credit terms of the deferred deposit loan shall be disclosed in accordance with Regulation Z, including the terms “finance charge” and “annual percentage rate”.  The finance charge under this subsection shall be deemed fully earned as of the date of the transaction.  Except for a fee for a dishonored instrument and the actual database verification fee pursuant to subparagraph b of paragraph 2 of subsection B of Section 3109 of this title, the lender may charge only those charges expressly authorized in this subsection in connection with a deferred deposit loan.

B.  If an instrument held by a lender as a result of a deferred deposit loan is returned to the lender from a payor financial institution due to insufficient funds, a closed account or a stop payment order, the lender shall have the right to exercise all civil means authorized by law to collect the amount of the instrument.  In addition, the lender may contract for and collect a dishonored instrument charge, not to exceed Twenty-five Dollars ($25.00); however, a dishonored instrument charge shall not be allowed if the instrument is dishonored by a financial institution, or the debtor places a stop payment order, due to forgery or theft of the instrument.

Added by Laws 2003, c. 240, § 8, eff. Sept. 1, 2003.  Amended by Laws 2004, c. 557, § 5, emerg. eff. June 10, 2004.