Bill Summaries: S679 (2015-2016 Session)

Tracking:
  • Summary date: Aug 10 2015 - View summary

    AN ACT TO PROVIDE FOR THE RECOVERY OF COURT COSTS AND RELATED COSTS UPON VOLUNTARY DISMISSAL AT THE REQUEST OF A BORROWER OF AN ACTION TO RECOVER PAYMENTS DUE UNDER A LOAN GRANTED UNDER THE NORTH CAROLINA CONSUMER FINANCE ACT OR UPON REDUCTION OF A LOAN MADE UNDER THE ACT TO JUDGMENT; TO CLARIFY THE MULTIPLE LOAN LIMITATIONS UNDER THE ACT; TO CLARIFY THE STATUTE RELATED TO WHETHER OR NOT BORROWERS ARE MEMBERS OF THE MILITARY PRIOR TO MAKING LOANS UNDER THE ACT; AND TO MAKE TECHNICAL AND CONFORMING CHANGES TO THE ACT. Enacted August 5, 2015. Effective September 1, 2015.


  • Summary date: Jul 20 2015 - View summary

    House amendment makes the following changes to the 4th edition.

    Amends GS 53-177, making a technical correction.

    Amends GS 53-178 adding language providing that all balances due to a licensee from a borrower or an endorser, as specified, are to be considered a part of any loan made by a licensee when determining compliance with loan limitation amounts. 


  • Summary date: Jul 15 2015 - View summary

    House committee substitute makes the following changes to the 3rd edition.

    Amends proposed GS 53-177(e) clarifying the ability of a lender to recover court costs and other fees incurred if the borrower, and the lender agrees, requests a voluntary dismissal of an action to recover a loan or if the loan, requiring the lender to obtain in writing from the borrower an acknowledgment that the borrower will be liable for statutory court costs and other reasonable and bonafide costs incurred in bringing the action. Deletes language that provided the process for such costs recovery if the loan is reduced to a judgment. Provides that magistrates, judges, and arbitrators can still award filing fees and fees for service of process incurred by a lender while bringing the civil action if a judgment is awarded, expressly authorizing the recovery of such costs and fees when the judgment is entered against the borrower. 

    Amends GS 53-180.1, Military service members limitation, making clarifying changes and amending the steps that the licensee can take that constitute reasonable precautions to prevent making loans in violation of the statute, providing that reasonable precaution can include obtaining a certificate from the Department of Defense Manpower Data Center (DMDC) that specifies that the prospective borrower is or is not a member of the armed forces (previously, only specified that a certificate from the Department of Defense would constitute reasonable precaution). Requires a computer screen copy of any failed request if the DMDC system is down. Also provides that verification of borrower's income will be considered reasonable precaution. Makes technical changes.

    Changes the act's effective date to September 1, 2015 (was, July 1, 2015).


  • Summary date: Apr 20 2015 - View summary

    Senate amendments make the following changes to the 2nd edition. GS 53-177 has been amended by adding a new subsection (e), which provided that if a lender agrees, after a written request of the borrower, to take a voluntary dismissal of an action to recover payments due under a loan issued pursuant to this Article or if such a loan is reduced to a judgment, then the lender can recover the statutory court costs incurred as well as any other reasonable and bona fide costs incurred in the course of bringing action. Amendment #1 rewrites subsection (e) to include the provision that nothing in GS 53-177(e) is to be construed as authorizing the collection of attorneys' fees, which are otherwise prohibited under GS 53-180(e). Additionally provides that this section does not apply if the debtor raises an affirmative defense, in writing, to the action to collect a loan made under this Article.

    Amendment #2 makes the following changes.

    Amends GS 53-180.1(b1), as enacted in this act, which requires a licensee to take reasonable precautions to prevent making a loan to a covered military member in violation of this section. Provides additional steps that the licensee may take that constitute reasonable precautions. However, provides that nothing in this section is to be construed as requiring confirmation of covered military service member status for a borrower with whom the licensee has an established customer relationship, or for a borrower who provides verification from the borrower's most recent payroll or earnings statement that clearly indicates that the borrower is not a covered military service member.

    Amendment #3 makes the following changes.

    Amends GS 53-180.1(b) regarding the requirements that must be met in order for a licensee to grant a loan to a borrower who is a covered military service member. Provides that the licensee must provide notice to the borrower's Commanding Officer or Executive Officer before the loan is finalized. Notice to the borrower's company level commander or equivalent designee is no longer acceptable. Deletes all references to notice to a designee or company level commander.


  • Summary date: Apr 15 2015 - View summary

    Senate committee substitute makes the following changes to the 1st edition.

    Changes the long title.

    Amends proposed GS 53-177(e) making technical and clarifying changes.

    Amends GS 53-180.1(a), changing the term military service member to covered military service member. Also changes references to the company-level commander in subsection (b) to Commanding Officer or Executive Officer. 

    Makes clarifying changes.

     


  • Summary date: Mar 31 2015 - View summary

    Enacts new GS 53-177(e), recovery of costs, providing that if a lender agrees, after a written request of the borrower, to take a voluntary dismissal of an action to recover payments due under a loan issued pursuant to this Article or if such a loan is reduced to a judgment, then the lender can recover the statutory court costs incurred as well as any other reasonable and bona fide costs incurred in the course of bringing action. 

    Amends GS 53-178, No further charges; no splitting contracts; certain contracts void, providing that the prohibition on further or other charges or insurance commissions, whether directly or indirectly contracted for, extends to affiliates, parents, subsidiaries, or licensees under same ownership, management, or control. Make technical and clarifying changes. 

    Repeals GS 53-179, concerning multiple-office loan limitations.

    Amends GS 53-180.1 regarding the requirements and limitations of granting loans to military service members under the North Carolina Consumer Finance Act, providing that "military service member" includes a member of the Armed Forces who is on Active Guard and Reserve Duty as specified, with a rank of E4 or below (previously, did not include a rank cutoff). Deletes language which required licensees to confirm if the borrower is a military service member, and if so, document it in the individual's loan file. 

    Makes organization changes deleting language previously found in GS 53-180.1(b)(6) and putting it in new GS 53-180.1(b1), Reasonable Precautions to Identify Covered Members. Adds clarifying language that reasonable precaution can include obtaining a copy of a Department of Defense certificate verifying the borrower is not in the military, obtaining a copy of a military service member's most recent leave and earnings statement, or verification of income.

    Amends GS 53-190, Loans made elsewhere, raising the monetary limitations amount for loan contracts made outside this state that can still be enforced in North Carolina to $15,000 or less (was, $10,000 or less).  Further provides that if any lender or agent of a lender makes a loan contract outside this State in the amount of $15,000 or less (was, $10,000 or less), comes into the State to solicit or conduct activities in regard to such loan contract than they are subject to the requirements of GS Chapter 53, Article 15, the North Carolina Consumer Finance Act. 

    Effective July 1, 2015.