Bill No.:         HB0088                                             Drafter: DKG

LSO No.:       14LSO-0306                                     Effective Date: 7/1/2014

Enrolled Act No.:    HEA0047

Chapter No.:                        CH0070

Prime Sponsor:       Representative Throne

Catch Title:              Post-dated checks.

Subject:                     Regulations regarding post-dated checks.

Summary/Major Elements:

· This act allows a consumer to rescind a post-dated check transaction by 5 p.m., of the following day accompanied by return of all funds in cash or certified funds.

· The act allows a consumer to repay a post-dated check transaction by an extended payment plan once every twelve months.

· The extended payment plan must allow at least sixty days for repayment and at least four substantially equal payments.  No interest or additional fees can be charged under the prepayment plan if the consumer meets its terms.  The consumer must also be allowed to prepay the extended plan without penalty.

· Upon failure to pay any instalment of the prepayment plan, the entire balance is subject to collection and to interest of 6% plus the prime rate.

· The act requires post dated check cashers to provide certain notifications regarding the right to rescind and limitations on post-dated checks.

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