_______________________________________________
SUBSTITUTE
HOUSE BILL 2321
_______________________________________________
Passed
Legislature - 1998 Regular Session
State
of Washington 55th Legislature 1998 Regular Session
By
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.
