A deferred deposit lender shall not: 1. Charge fees other than, or in excess of those authorized by the Deferred Deposit Lending Act; 2. Make deferred deposit loans at unlicensed locations; 3. Alter or delete the date on an instrument after it has been accepted by the lender pursuant to a deferred deposit loan; 4. Accept an undated instrument or an instrument dated on a date other than the date of the deferred deposit loan; 5. Accept an instrument unless the account on which the instrument is drawn is a legitimate, open and active account; 6. Require a debtor to provide security for the deferred deposit loan or require a debtor to provide a guaranty from another person; 7. Advance a loan amount greater than Five Hundred Dollars ($500.00) to a borrower in one deferred deposit loan transaction exclusive of the finance charge allowed in Section 3108 of this title; 8. Engage in a deferred deposit loan with a term of less than twelve (12) days or more than forty-five (45) days; 9. Negotiate or present an instrument for payment unless the instrument is endorsed with the actual business name of the lender; 10. Negotiate any instrument presented by a borrower if the borrower has redeemed the instrument by paying the full amount due under the deferred deposit loan; 11. Make any charge for insurance in connection with a deferred deposit loan transaction; 12. Refuse the borrower’s right to rescind the deferred deposit loan at any time between the time of the deferred deposit loan transaction and 5 p.m. of the next business day following the deferred deposit loan transaction; 13. Charge the borrower an additional finance charge or fee for cashing a lender’s business instrument, if the lender pays the proceeds from the loan transaction in the form of a business instrument; 14. Require or accept more than one dated instrument per deferred deposit loan; or 15. Refuse the borrower’s right to enter into an installment payment plan, pursuant to this act. Historical Data
Laws 2003, SB 583, c. 240, § 6, eff. September 1, 2003; Amended by Laws 2004, SB 1565, c. 557, § 4, emerg. eff. June 10, 2004 (superseded document available).