53-177.1. Electronic transaction fees.
(a) The following definitions apply in this section:
(1) Affiliate. - In relation to a licensee, an entity that directly or indirectly controls, is controlled by, or is under joint control with the licensee.
(2) Control. - Any of the following:
a. Own, directly or indirectly, at least fifty percent (50%) of the capital of an entity.
b. Have the power to direct or cause the direction of the management of and set the policies of an entity.
(b) In addition to the recovery of other costs allowed under this Article, a licensee may collect from a borrower an amount not to exceed the actual cost of any fees charged by a non-affiliate third party for the following transactions:
(1) Online debit card payments to the borrower's account.
(2) In-person debit card payments to the borrower's account.
(3) Automated clearinghouse transaction payments to the borrower's account.
(4) Disbursement of loan proceeds via automated clearinghouse transactions.
(5) Disbursement of loan proceeds via prepaid debit cards or stored value cards.
(6) Disbursement of loan proceeds via electronic payments to the borrower's account at a financial institution or financial services company.
(c) A licensee shall make available to borrowers at least one type of transaction for an account payment and at least one type of transaction for a disbursement of loan proceeds in which it will not seek to recover the cost of third-party fees associated with the transaction.
(d) A licensee shall publish on its website and publicly display at all its retail locations a disclosure on whether a borrower will be charged for any third-party fees with regard to each available type of transaction for account payments and disbursements of loan proceeds. A licensee shall also provide this information as a separate disclosure to a borrower when the borrower establishes a loan account with the licensee.
(e) Nothing in this section prohibits a borrower from directly paying transaction-based fees to a non-affiliate third party for account payments and disbursements of loan proceeds. (2021-159, s. 1(a).)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 53 - Regulation of Financial Services
Article 15 - North Carolina Consumer Finance Act.
§ 53-166 - Scope of Article; evasions; penalties; loans in violation of Article void.
§ 53-167 - Expenses of supervision.
§ 53-169 - Application for license.
§ 53-170 - Locations; change of ownership or management.
§ 53-171 - Revocation, suspension or surrender of license.
§ 53-172 - Conduct of other business in same office.
§ 53-175 - Fee for returned checks.
§ 53-176 - Rates, maturities and amounts.
§ 53-177.1 - Electronic transaction fees.
§ 53-178 - No further charges; no splitting contracts; certain contracts void.
§ 53-180 - Limitations and prohibitions on practices and agreements.
§ 53-180.1 - Military service members limitation.
§ 53-182 - Payment of loans; receipts.
§ 53-183 - Advertising, broadcasting, etc., false or misleading statements.
§ 53-184 - Securing of information; records and reports; allocations of expense.
§ 53-185 - Rules and regulations by Banking Commission and Commissioner.
§ 53-186 - Commissioner to issue subpoenas, conduct hearings, give publicity to investigations, etc.
§ 53-187 - Injunctive powers; receivers.
§ 53-188 - Review of regulations, order or act of Commission or Commissioner.