Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. SB 920
       
       
       
       
       
       
                                Ì937894^Î937894                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  01/29/2018           .                                
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       The Committee on Commerce and Tourism (Gibson) recommended the
       following:
       
    1         Senate Amendment to Amendment (478870) (with title
    2  amendment)
    3  
    4         Delete lines 40 - 283
    5  and insert:
    6         (6)(a) A deferred presentment provider or its affiliate may
    7  not directly or indirectly charge, collect, or receive interest,
    8  fees, or other charges exceeding 30 percent per annum on the
    9  principal amount, inclusive of ancillary products or services
   10  incidental to or included in the deferred presentment
   11  transaction or deferred presentment installment transaction that
   12  exceed 10 percent of the currency or payment instrument
   13  provided. However, a verification fee may be charged as provided
   14  in s. 560.309(8). The 10-percent fee may not be applied to the
   15  verification fee.
   16         (b)Fees are earned at the time of origination for a
   17  deferred presentment transaction scheduled to be paid off in 31
   18  days or less; however, fees for a deferred presentment
   19  installment transaction are earned using a simple interest
   20  calculation. A deferred presentment provider may charge only the
   21  interest, those fees, and other charges specifically authorized
   22  in this section. Prepayment penalties are prohibited.
   23         (8) A deferred presentment agreement may not be for a term
   24  longer than 31 days or fewer less than 7 days, except for a
   25  deferred presentment installment transaction, which may not be
   26  for a term longer than 90 days or fewer than 60 days.
   27         (12) The deferred presentment agreement and the drawer’s
   28  initial check must bear the same date, and the number of days of
   29  the deferment period must shall be calculated from that date.
   30  For deferred presentment installment transactions, the deferred
   31  presentment provider may accept additional checks, subject to
   32  the limitations in subsection (5), each bearing the date that
   33  the check was given to the provider, and the deferred
   34  presentment agreement must include the deferment period
   35  applicable to each check. The deferred presentment provider and
   36  the drawer may not alter or delete the date on any written
   37  agreement or check held by the deferred presentment provider.
   38         (13) For each deferred presentment transaction, the
   39  deferred presentment provider must comply with the disclosure
   40  requirements of 12 C.F.R. part 226, relating to the federal
   41  Truth-in-Lending Act, and Regulation Z of the Bureau of Consumer
   42  Financial Protection Board of Governors of the Federal Reserve
   43  Board. A copy of the disclosure must be provided to the drawer
   44  at the time the deferred presentment transaction is initiated.
   45         (14) A deferred presentment provider or its affiliate may
   46  not accept or hold an undated check or a check dated on a date
   47  other than the date on which the deferred presentment provider
   48  agreed to hold the check and signed the deferred presentment
   49  transaction agreement, except when a customer provides a new
   50  payment instrument reflecting the new outstanding transaction
   51  balance and anticipated fees upon making a payment on a deferred
   52  presentment installment transaction.
   53         (19) A deferred presentment provider may not enter into a
   54  deferred presentment transaction or a deferred presentment
   55  installment transaction with a drawer if the drawer or any other
   56  person in the drawer’s household who has an outstanding deferred
   57  presentment transaction or an outstanding deferred presentment
   58  installment transaction with that provider or with any other
   59  deferred presentment provider. A deferred presentment provider
   60  may not enter into a deferred presentment transaction or a
   61  deferred presentment installment transaction with a drawer if
   62  the previous deferred presentment transaction or previous
   63  deferred presentment installment transaction of a drawer or any
   64  other person in the drawer’s household terminated in the
   65  previous 24 hours. As used in this section, the term “household”
   66  means a person or group of persons living together in a room or
   67  group of rooms as a housing unit, but the term does not include
   68  persons boarding in or renting a portion of the dwelling, or
   69  with a person whose previous deferred presentment transaction
   70  with that provider or with any other provider has been
   71  terminated for less than 24 hours. The deferred presentment
   72  provider must verify such information as follows:
   73         (a) The deferred presentment provider must shall maintain a
   74  common database and shall verify whether the provider or an
   75  affiliate has an outstanding deferred presentment transaction
   76  with any drawer in a particular household person or has
   77  terminated a transaction with any drawer in that household
   78  person within the previous 24 hours. If a provider has not
   79  established a database, the provider may rely upon the written
   80  verification of the drawer as provided in subsection (20).
   81         (b) The deferred presentment provider must shall access the
   82  office’s database established pursuant to subsection (24) (23)
   83  and shall verify whether any other deferred presentment provider
   84  has an outstanding deferred presentment transaction with any
   85  drawer in a particular household person or has terminated a
   86  transaction with any drawer in that household person within the
   87  previous 24 hours. Before the office has implemented a database
   88  to include deferred presentment installment transactions If a
   89  provider has not established a database, the deferred
   90  presentment provider must access the office’s current database
   91  pursuant to this paragraph and may rely upon the written
   92  verification of the drawer as provided in subsection (20).
   93         (20) A deferred presentment provider must shall provide the
   94  following notice in a prominent place on each deferred
   95  presentment agreement in at least 14-point type in substantially
   96  the following form and must obtain the signature of the drawer
   97  where indicated:
   98  
   99                               NOTICE                              
  100  
  101         1. STATE LAW PROHIBITS A HOUSEHOLD YOU FROM HAVING
  102         MORE THAN ONE DEFERRED PRESENTMENT AGREEMENT AT ANY
  103         ONE TIME. STATE LAW ALSO PROHIBITS A HOUSEHOLD YOU
  104         FROM ENTERING INTO A DEFERRED PRESENTMENT AGREEMENT
  105         WITHIN 24 HOURS AFTER TERMINATING ANY PREVIOUS
  106         DEFERRED PRESENTMENT AGREEMENT. FAILURE TO OBEY THIS
  107         LAW COULD CREATE SEVERE FINANCIAL HARDSHIP FOR YOU AND
  108         YOUR FAMILY.
  109  
  110         YOU MUST SIGN THE FOLLOWING STATEMENT:
  111  
  112         NO PERSON IN MY HOUSEHOLD HAS I DO NOT HAVE AN
  113         OUTSTANDING DEFERRED PRESENTMENT AGREEMENT WITH ANY
  114         DEFERRED PRESENTMENT PROVIDER AT THIS TIME. NO PERSON
  115         IN MY HOUSEHOLD HAS I HAVE NOT TERMINATED A DEFERRED
  116         PRESENTMENT AGREEMENT WITHIN THE PAST 24 HOURS.
  117         (Signature of Drawer)
  118  
  119         2. YOU CANNOT BE PROSECUTED IN CRIMINAL COURT FOR A
  120         CHECK WRITTEN UNDER THIS AGREEMENT, BUT ALL LEGALLY
  121         AVAILABLE CIVIL MEANS TO ENFORCE THE DEBT MAY BE
  122         PURSUED AGAINST YOU.
  123  
  124         3. STATE LAW PROHIBITS A DEFERRED PRESENTMENT PROVIDER
  125         (THIS BUSINESS) FROM ALLOWING YOU TO “ROLL OVER” YOUR
  126         DEFERRED PRESENTMENT TRANSACTION. THIS MEANS THAT YOU
  127         CANNOT BE ASKED OR REQUIRED TO PAY AN ADDITIONAL FEE
  128         IN ORDER TO FURTHER DELAY THE DEPOSIT OR PRESENTMENT
  129         OF YOUR CHECK FOR PAYMENT.
  130  
  131         4.FOR DEFERRED PRESENTMENT TRANSACTIONS NOT REPAYABLE
  132         IN INSTALLMENTS: IF YOU INFORM THE PROVIDER IN PERSON
  133         THAT YOU CANNOT COVER THE CHECK OR PAY IN FULL THE
  134         AMOUNT OWING AT THE END OF THE TERM OF THIS AGREEMENT,
  135         YOU WILL RECEIVE A GRACE PERIOD EXTENDING THE TERM OF
  136         THE AGREEMENT FOR AN ADDITIONAL 60 DAYS AFTER THE
  137         ORIGINAL TERMINATION DATE, WITHOUT ANY ADDITIONAL
  138         CHARGE. THE DEFERRED PRESENTMENT PROVIDER MUST SHALL
  139         REQUIRE THAT YOU, AS A CONDITION OF OBTAINING THE
  140         GRACE PERIOD, COMPLETE CONSUMER CREDIT COUNSELING
  141         PROVIDED BY AN AGENCY INCLUDED ON THE LIST THAT WILL
  142         BE PROVIDED TO YOU BY THIS PROVIDER. YOU MAY ALSO
  143         AGREE TO COMPLY WITH AND ADHERE TO A REPAYMENT PLAN
  144         APPROVED BY THAT AGENCY. IF YOU DO NOT COMPLY WITH AND
  145         ADHERE TO A REPAYMENT PLAN APPROVED BY THAT AGENCY, WE
  146         MAY DEPOSIT OR PRESENT YOUR CHECK FOR PAYMENT AND
  147         PURSUE ALL LEGALLY AVAILABLE CIVIL MEANS TO ENFORCE
  148         THE DEBT AT THE END OF THE 60-DAY GRACE PERIOD.
  149  
  150         5.FOR DEFERRED PRESENTMENT INSTALLMENT TRANSACTIONS:
  151         IF YOU INFORM THE PROVIDER IN WRITING OR IN PERSON BY
  152         NOON [TIME ZONE] OF THE BUSINESS DAY BEFORE A
  153         SCHEDULED PAYMENT THAT YOU CANNOT PAY IN FULL THE
  154         SCHEDULED AMOUNT DUE AND OWING, YOU MAY DEFER THE
  155         SCHEDULED PAYMENT, WITHOUT ANY ADDITIONAL FEES OR
  156         CHARGES, AND THE PROVIDER MAY NOT DEFAULT THE ACCOUNT
  157         AND ACCELERATE THE FULL BALANCE. YOU MAY REQUEST ONLY
  158         ONE DEFERRED PAYMENT PER LOAN. THE DEFERRED PAYMENT
  159         WILL BE ADDED AFTER THE LAST SCHEDULED PAYMENT AND IS
  160         DUE AT AN INTERVAL NO SHORTER THAN THE INTERVALS
  161         BETWEEN THE ORIGINALLY SCHEDULED PAYMENTS.
  162  
  163         (21) The deferred presentment provider may not deposit or
  164  present the drawer’s check if the drawer informs the provider in
  165  writing or in person that the drawer cannot redeem or pay in
  166  full in cash the amount due and owing the deferred presentment
  167  provider, unless the drawer fails to comply with subsection (22)
  168  or subsection (23), as applicable. No additional fees or
  169  penalties may be imposed on the drawer by virtue of any
  170  misrepresentation made by the drawer as to the sufficiency of
  171  funds in the drawer’s account. Additional fees may not be added
  172  to the amounts due and owing to the deferred presentment
  173  provider.
  174         (22) For deferred presentment transactions not repayable in
  175  installments, if, by the end of the deferment period, the drawer
  176  informs the deferred presentment provider in writing or in
  177  person that the drawer cannot redeem or pay in full in cash the
  178  amount due and owing the deferred presentment provider, the
  179  deferred presentment provider must shall provide a grace period
  180  extending the term of the agreement for an additional 60 days
  181  after the original termination date, without any additional
  182  charge.
  183         (a) The provider must shall require, that as a condition of
  184  providing a grace period, that the drawer make an appointment
  185  with a consumer credit counseling agency within 7 days after the
  186  end of the deferment period and complete the counseling by the
  187  end of the grace period. The drawer may agree to, comply with,
  188  and adhere to a repayment plan approved by the counseling
  189  agency. If the drawer agrees to comply with and adhere to a
  190  repayment plan approved by the counseling agency, the provider
  191  must also comply with and adhere to that repayment plan. The
  192  deferred presentment provider may not deposit or present the
  193  drawer’s check for payment before the end of the 60-day grace
  194  period unless the drawer fails to comply with such conditions or
  195  the drawer fails to notify the provider of such compliance.
  196  Before each deferred presentment transaction, the provider may
  197  verbally advise the drawer of the availability of the grace
  198  period consistent with the written notice in subsection (20),
  199  and may not discourage the drawer from using the grace period.
  200         (b) At the commencement of the grace period, the deferred
  201  presentment provider must shall provide the drawer:
  202         1. Verbal notice of the availability of the grace period
  203  consistent with the written notice in subsection (20).
  204         2. A list of approved consumer credit counseling agencies
  205  prepared by the office. The office list must shall include
  206  nonprofit consumer credit counseling agencies affiliated with
  207  the National Foundation for Credit Counseling which provide
  208  credit counseling services to state residents in person, by
  209  telephone, or through the Internet. The office list must include
  210  phone numbers for the agencies, the counties served by the
  211  agencies, and indicate the agencies that provide telephone
  212  counseling and those that provide Internet counseling. The
  213  office must shall update the list at least once each year.
  214         3. The following notice in at least 14-point type in
  215  substantially the following form:
  216  
  217         AS A CONDITION OF OBTAINING A GRACE PERIOD EXTENDING
  218         THE TERM OF YOUR DEFERRED PRESENTMENT AGREEMENT FOR AN
  219         ADDITIONAL 60 DAYS, UNTIL [DATE], WITHOUT ANY
  220         ADDITIONAL FEES, YOU MUST COMPLETE CONSUMER CREDIT
  221         COUNSELING PROVIDED BY AN AGENCY INCLUDED ON THE LIST
  222         THAT WILL BE PROVIDED TO YOU BY THIS PROVIDER. YOU MAY
  223         ALSO AGREE TO COMPLY WITH AND ADHERE TO A REPAYMENT
  224         PLAN APPROVED BY THE AGENCY. THE COUNSELING MAY BE IN
  225         PERSON, BY TELEPHONE, OR THROUGH THE INTERNET. YOU
  226         MUST NOTIFY US WITHIN 7 DAYS, BY [DATE], THAT YOU HAVE
  227         MADE AN APPOINTMENT WITH A CONSUMER CREDIT COUNSELING
  228         AGENCY. YOU MUST ALSO NOTIFY US WITHIN 60 DAYS, BY
  229         [DATE], THAT YOU HAVE COMPLETED THE CONSUMER CREDIT
  230         COUNSELING. WE MAY VERIFY THIS INFORMATION WITH THE
  231         AGENCY. IF YOU FAIL TO PROVIDE THE 7-DAY OR 60-DAY
  232         NOTICE, OR IF YOU HAVE NOT MADE THE APPOINTMENT OR
  233         COMPLETED THE COUNSELING WITHIN THE TIME REQUIRED, WE
  234         MAY DEPOSIT OR PRESENT YOUR CHECK FOR PAYMENT AND
  235         PURSUE ALL LEGALLY AVAILABLE CIVIL MEANS TO ENFORCE
  236         THE DEBT.
  237  
  238         (c) If a drawer completes an approved payment plan, the
  239  deferred presentment provider must shall pay one-half of the
  240  drawer’s fee for the deferred presentment agreement to the
  241  consumer credit counseling agency.
  242         (23)For deferred presentment installment transactions, if
  243  a drawer informs the deferred presentment provider in writing or
  244  in person by noon of the business day before a scheduled payment
  245  that the drawer cannot pay in full the scheduled payment amount
  246  due and owing the provider, the deferred presentment provider
  247  must provide the drawer the opportunity to defer the scheduled
  248  payment, at no additional fee or charge, until after the last
  249  scheduled payment. The phrase “by noon” means 12:00 p.m. of the
  250  same time zone in which the deferred presentment agreement was
  251  entered into. Only one deferred payment is permitted for each
  252  deferred presentment installment transaction. The deferred
  253  payment must be due at an interval after the last scheduled
  254  payment which is no shorter than the intervals between the
  255  originally scheduled payments.
  256         (24)(a)(23) The office must shall implement a common
  257  database with real-time access through an Internet connection
  258  for deferred presentment providers, as provided in this
  259  subsection. The database must be accessible to the office and
  260  the deferred presentment providers in order to verify whether
  261  any deferred presentment transactions are outstanding for any
  262  drawer in a particular household person. Deferred presentment
  263  providers must shall
  264  
  265  ================= T I T L E  A M E N D M E N T ================
  266  And the title is amended as follows:
  267         Delete lines 380 - 414
  268  and insert:
  269         exclusive of fees; revising and specifying the maximum
  270         interest, fees, and charges that deferred presentment
  271         providers or their affiliates may charge, collect, or
  272         receive in deferred presentment transactions and
  273         deferred presentment installment transactions,
  274         respectively; specifying the calculation of fees
  275         earned for deferred presentment installment
  276         transactions; prohibiting prepayment penalties;
  277         specifying the minimum and maximum terms of a deferred
  278         presentment installment transaction; specifying dates
  279         that checks must bear; authorizing providers of
  280         deferred presentment installment transactions to
  281         accept additional checks subject to certain
  282         limitations; requiring the deferred presentment
  283         agreement to include the deferment period applicable
  284         to each check; correcting a reference to federal law;
  285         providing an exception to a prohibition against the
  286         acceptance or holding of undated checks or checks with
  287         certain dates by a deferred presentment provider or
  288         its affiliate; prohibiting deferred presentment
  289         providers from entering into deferred presentment
  290         transactions or deferred presentment installment
  291         transactions with a drawer, if the drawer or any other
  292         person in the drawer’s household has an outstanding
  293         deferred presentment transaction or deferred
  294         presentment installment transaction, or within a
  295         specified timeframe after the termination of the
  296         previous deferred presentment transaction or deferred
  297         presentment installment transaction of the drawer or
  298         any other person in the drawer’s household; defining
  299         the term “household”; conforming a cross-reference;
  300         providing a verification process that may be relied
  301         upon under certain conditions; revising a notice in
  302         deferred presentment agreements; authorizing a drawer
  303         to inform a provider in writing that the drawer cannot
  304         redeem or pay in full the amount due and owing to the
  305         provider; providing an exception to a prohibition,
  306         under certain circumstances, against a deferred
  307         presentment provider’s deposit or presentment of a
  308         drawer’s check; requiring a provider of a deferred
  309         presentment installment transaction to allow a drawer
  310         to defer one scheduled payment under certain
  311         circumstances; providing requirements for the deferred
  312         payment; revising a requirement for the common
  313         database for deferred presentment providers;
  314         specifying the frequency a certain fee may be imposed
  315         by Financial Services Commission rule for data on
  316         certain transactions submitted by deferred presentment
  317         providers to the database; providing