ratios – Payment methods. A. A licensee authorized to make small loans under this act may charge and collect fees in a manner consistent with this section. B. A licensee may only charge and collect a periodic interest rate not to exceed seventeen percent (17%) per month unless otherwise provided by this title. C. The maximum aggregated principal loan amount of all small loans outstanding across all licensees per customer shall be One Thousand Five Hundred Dollars ($1,500.00) and adjusted every other year by the Administrator of the Department of Consumer Credit to reflect the percentage changes in the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor. To ensure that the maximum aggregated principal amount is not exceeded, the licensee shall verify outstanding amounts by using a private database approved by the Administrator. To comply with the verification required under this act, a lender may be charged a fee by the database provider not to exceed Two Dollars and twenty cents ($2.20) for each full or partial 30-day period that a balance is scheduled to be outstanding. D. 1. Notwithstanding the maximum aggregate loan amount established in subsection C of this section, a lender is prohibited from making a small loan if the total scheduled payments coming due in a month exceeds twenty percent (20%) of the borrower's gross monthly income. 2. For the purposes of determining a borrower's gross monthly income under this subsection, a lender shall obtain and maintain documentation of the borrower's proof of income or third-party verification of all income considered in making the borrower's gross monthly income determination. 3. For the purposes of this subsection, "month" means a period extending from a given date in one (1) calendar month to the same date in the succeeding calendar month; or if there is no same date in the succeeding calendar month, the last day of the succeeding calendar month. E. Any small loan under this act shall require payment in the form of cash, money order, debit card, prepaid credit card, automated clearinghouse debit (ACH payment), remotely created check debit (RCC payment) or any other instrument for payment of money on or after the due date of each billing cycle. If the borrower chooses to authorize the electronic payment of money, the lender: 1. Must get written authorization from the borrower to establish the debit; 2. Must give written notice to the borrower before the initial funds are transferred; 3. Must get additional written approval from the borrower after a second failed attempt to make a loan payment due to insufficient funds; and 4. Is permitted to provide electronic written notices to the borrower as long as the borrower consents to electronic communications. F. If a customer defaults under the terms of a small loan and the licensee refers the customer's account to an attorney for collection, the licensee may, if the small loan so provides, charge and collect from the customer a reasonable attorney fee not to exceed fifteen percent (15%) of the outstanding amount. G. If a check, ACH payment or RCC payment is returned to a licensee from a payor financial institution due to insufficient funds, a licensee shall have the authority to assess a twenty-five- dollar fee against the maker or drawer of the returned check.
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