CERTIFICATION OF ENROLLMENT

 

                   SUBSTITUTE HOUSE BILL 2321

 

 

                    Chapter 28, Laws of 1998

 

 

 

 

                        55th Legislature

                      1998 Regular Session

 

 

CONSUMER LOANS--COLLECTION OF THIRD-PARTY FEES

 

 

 

                    EFFECTIVE DATE:  6/11/98

Passed by the House January 26, 1998  Yeas 97   Nays 0

 

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

 

Passed by the Senate March 2, 1998

  Yeas 46   Nays 0

             CERTIFICATE

 

I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2321  as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

             IRV NEWHOUSE

President of the Senate

          TIMOTHY A. MARTIN

                          Chief Clerk

 

 

Approved March 12, 1998 Place Style On Codes above, and Style Off Codes below.    

                                FILED          

 

 

           March 12, 1998 - 4:05 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 2321

          _______________________________________________

 

             Passed Legislature - 1998 Regular Session

 

State of Washington      55th Legislature     1998 Regular Session

 

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives L. Thomas, Smith and Wolfe)

 

Read first time 01/15/98.  Referred to Committee on .

Allowing consumer loan companies to charge borrowers fees for services provided by third parties. 


    AN ACT Relating to authorizing the collection of third-party fees in connection with making 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) In connection with the making of a loan, 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;

    (3) Agree with the borrower for the payment of fees ((for title insurance, appraisals, recording, reconveyance, and releasing)) to third parties other than the licensee who provide goods or services to the licensee 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.


    Passed the House January 26, 1998.

    Passed the Senate March 2, 1998.

Approved by the Governor March 12, 1998.

    Filed in Office of Secretary of State March 12, 1998.