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SUBSTITUTE
HOUSE BILL 2690
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Passed
Legislature - 1996 Regular Session
State of Washington 54th
Legislature 1996 Regular Session
By
Read first time 02/02/96.
Authorizing the
collection of fees and prepayment penalties for consumer loans.
AN ACT
Relating to authorizing the collection of fees and prepayment penalties for
consumer loans; and amending RCW 31.04.105.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
31.04.105 and 1994 c 92 s 167 are each amended to read as follows:
Every
licensee may:
(1)
Lend money at a rate that does not exceed twenty-five percent per annum as
determined by the simple interest method of calculating interest owed;
(2)(a)
In connection with the making of a loan that is not secured primarily by
real estate, charge the borrower a nonrefundable, prepaid, loan origination
fee not to exceed four percent of the first twenty thousand dollars and two
percent thereafter of the principal amount of the loan advanced to or for the
direct benefit of the borrower, which fee may be included in the principal
balance of the loan;
(b)
In connection with the making of a loan that is secured primarily by real
estate, charge the borrower a nonrefundable, prepaid loan origination fee,
which may be included in the principal balance of the loan;
(3)
Agree with the borrower for the payment of fees ((for title insurance,
appraisals, recording, reconveyance, and releasing)) to third parties
who provide goods or services in connection with the preparation of the
borrower's loan, including, but not limited to, credit reporting agencies,
title companies, appraisers, structural and pest inspectors, and escrow
companies, when such fees are actually paid by the licensee to a third
party for such services or purposes and may include such fees in the amount of
the loan. However, no charge may be collected unless a loan is made, except
for reasonable fees properly incurred in connection with the appraisal of
property by a qualified, independent, professional, third-party appraiser
selected by the borrower and approved by the lender or in the absence of
borrower selection, selected by the lender;
(4)
Charge and collect a penalty of ten cents or less on each dollar of any
installment payment delinquent ten days or more;
(5)
Collect from the debtor reasonable attorneys' fees, actual expenses, and costs
incurred in connection with the collection of a delinquent debt, a
repossession, or a foreclosure when a debt is referred for collection to an attorney
who is not a salaried employee of the licensee;
(6)
Make open-end loans as provided in this chapter;
(7)
Charge and collect a fee for dishonored checks in an amount approved by the
director; and
(8)
In accordance with Title 48 RCW, sell insurance covering real and personal
property, covering the life or disability or both of the borrower, and covering
the involuntary unemployment of the borrower.
