07 LC 34
0945
House
Bill 163
By:
Representatives Tumlin of the
38th,
Williams of the
165th,
Wix of the
33rd,
Franklin of the
43rd,
Ehrhart of the
36th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 7 of the Official Code of Georgia Annotated, relating to banking and
finance, so as to provide for licensing of persons who provide deferred
presentment services; to provide for a short title; to define certain terms; to
provide for licenses, qualifications, and application therefor; to provide for
fees; to provide for limitations; to provide for consumer notices; to provide
for rules and regulations; to provide for penalties and hearings; to provide for
complaint investigation; to provide for annual reports; to amend Title 16 of the
Official Code of Georgia Annotated, relating to crimes and offenses, so as to
repeal Chapter 17, "Payday Lending"; to provide for related matters; to provide
for severability; to provide for preemption; to provide an effective date; to
repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
7 of the Official Code of Georgia Annotated, relating to banking and finance, is
amended by adding at the end thereof a new Chapter 9 to read as
follows:
"CHAPTER
9
7-9-1.
This
chapter shall be known and may be cited as the 'Deferred Presentment Services
Act.'
7-9-2.
As
used in this chapter, the term:
(1)
'Affiliated' means, when used with reference to a specified person, a person
who, whether directly, indirectly, or through one or more intermediaries,
controls, is controlled by, or is under common control with the person
specified. Any beneficial owner of 20 percent or more of the combined voting
power of all classes of voting securities of a person or any executive officer,
director, trustee, joint venturer, or general partner of a person is an
affiliate of such person unless the shareholder, executive officer, director,
trustee, joint venturer, or general partner shall prove that he or she in fact
does not control, is not controlled by, or is not under common control with such
person.
(2)
'Amount financed' has the same meaning ascribed to it in Regulation Z of the
federal Truth-In-Lending Act, 12 C.F.R. 226.18(b), as amended.
(3)
'Check' means a negotiable instrument, as such term is defined in Code Section
11-3-104, signed by the maker and made payable to a person licensed under this
chapter.
(4)
'Commissioner' means the Commissioner of Insurance or his or her designated
representative.
(5)
'Consumer' means a person other than an organization who is the buyer, lessee,
or debtor to whom credit is granted in a consumer credit
transaction.
(6)
'Deferred presentment services' means a transaction whereby the deferred
presentment services provider, for a fee, does the following:
(A)
Accepts a check from the consumer;
(B)
Agrees to hold the check for a period of time prior to negotiation or deposit of
the check; and
(C)
Pays to the person, credits to the person´s account, or pays to another
party on the person´s behalf the amount of the check, less service fees,
permitted under subsection (d) of Code Section 7-9-10.
The
term 'deferred presentment services' shall also include any such arrangement in
which a licensee pays a cash advance to a consumer in return for an automated
clearing-house authorization to debit a consumer´s checking account on a
subsequent date.
(7)
'Deferred presentment services provider' means any person who is licensed to
engage in the business of deferred presentment services under this
chapter.
(8)
'Department' means the Department of Insurance.
(9)
'Licensee' means a person licensed to provide deferred presentment services
pursuant to this chapter.
(10)
'Multiple transactions' means more than one deferred presentment services
agreement in effect at any one time with any deferred presentments
provider.
(11)
'Person' means an individual, group of individuals, partnership, association,
corporation, or any other business unit or legal entity.
(12)
'Renewal' means an extension of a deferred presentment services agreement
whereby the consumer and licensee agree to extend the due date of the original
deferred presentment services agreement only for a service fee.
(13)
'Service fee' means the fee or other form of compensation, however paid,
authorized in Code Sections 7-9-10 and 7-9-11 for the deferral of the
presentation of a check pursuant to this chapter. Such fee shall not be deemed
to be interest for any purpose.
7-9-3.
(a)
No person shall engage in the business of deferred presentment services or in
any service substantially similar to deferred presentment services without
having first obtained a license from the department as provided in this
chapter.
(b)
The department shall promulgate rules and regulations providing for application
processing and deadlines.
(c)
A separate license shall be required for each person who engages in the business
of deferred presentment services; and if that person desires to transact
business at more than one location, each location must be approved by the
department before such person commences operation.
(d)
A deferred presentment services transaction that complies with the provisions of
this chapter shall not be construed to be a loan for the purpose of Chapter 3 or
4 of this Title. A deferred presentment services transaction shall not be
subject to the provisions of Code Section 16-9-20, except as provided in
subsection (d) of Code Section 7-9-10.
7-9-4.
(a)
Each application for a license shall be in writing and under oath to the
commissioner in a form prescribed by the department and shall include, but shall
not be limited to, the following:
(1)
The legal name, residence address, and business address of the applicant and, if
the applicant is a partnership, association, or corporation, the name, residence
address, and business address of every member, officer, managing employee, and
director thereof;
(2)
The name and street address of the registered agent for service of process of
the applicant, the location at which the deferred presentment services shall be
conducted, and such other data and information as the commissioner may require
with respect to the applicant, its directors, trustees, officers, members,
managing employees, or agents;
(3)
The relevant business records of the applicant indicating a minimum net worth,
determined in accordance with generally accepted accounting principles by a
certified public accountant, of at least $25,000.00 available for the operation
of each location;
(4)
Any criminal record of the applicant, a manager, or an employee or, if the
applicant is a partnership, association, or corporation, any criminal record of
any person who is a director, officer, or shareholder of 10 percent or more of
the outstanding stock of the applicant or who owns or controls the applicant;
any record of fraud or other act of personal dishonesty; any act, omission, or
practice that constitutes a breach of a fiduciary duty; or any record of
suspension, removal, or administrative action by any agency or department of the
United States or any state resulting from participation in the conduct of any
business. The department shall be authorized to obtain conviction data,
including without limitation information from the Georgia Crime Information
Center derived from fingerprints, with respect to any such persons in the same
manner as provided in Code Section 7-1-1004. Failure to disclose this
information shall be grounds for summary denial or revocation of a
license;
(5)
A corporate surety bond in a form acceptable to the department in favor of the
commissioner executed by a corporate surety authorized to transact business in
this state and approved by the department in the principal sum of $25,000.00 per
location not to exceed a total of $250,000.00. Such bond shall be payable to
the commissioner and shall be contingent upon compliance with this chapter and
the payment by the licensee of any and all moneys that may become due and owing
by the licensee to consumers or the department as a result of the receipt,
handling, transmission, and payment of money arising out of the business of the
licensee of cashing and retaining checks pursuant to the license issued to the
licensee under this chapter. The department may apply to the surety for such
sums owing and any person damaged by noncompliance of a licensee may proceed on
the bond;
(6)
An annual licensing fee of $1,000.00 for each location which shall be refunded
if the application is denied and which, if the license is granted, shall satisfy
the fee requirement for the first license year. The license period shall begin
July 1 of each year;
(7)
A copy of the written agreement that the applicant proposes to enter into with
consumers and a copy of the proposed schedule of fees to be charged to the
consumers, both of which are to be in conformity with this chapter;
and
(8)
A one-time, nonrefundable investigation fee of $500.00 per
location.
(b)
In order for an applicant to qualify for and retain a license, the applicant
must satisfy the objective criteria set forth in this Code section, including
the financial responsibility, financial condition, business experience,
character, and general fitness requirements.
(c)
The department may refuse to issue a license, or may revoke an existing license,
if it finds that the applicant, or any person who is a director, officer,
partner, agent, employee, or ultimate equitable owner of 10 percent or more of
the applicant, has been convicted of a felony involving moral turpitude in any
jurisdiction or of a crime that, if committed within this state, would
constitute a felony involving moral turpitude under the laws of this state. For
the purposes of this chapter, a person shall be deemed to have been convicted of
a crime if such person has pled guilty to a charge before a court or federal
magistrate or has been found guilty of such a charge by the decision or judgment
of a court or federal magistrate or by the verdict of a jury, irrespective of
the pronouncement of sentence or the suspension thereof, unless such guilty plea
or such decision, judgment, or verdict has been set aside, reversed, or
otherwise abrogated by lawful judicial process, or unless the person convicted
of the crime has received a pardon therefor from the President of the United
States or the governor or other pardoning authority in the jurisdiction where
the conviction was had or has received an official certification or pardon
granted by the State Board of Pardons and Paroles that removes the legal
disabilities resulting from such conviction and restores civil and political
rights in this state.
(d)
The department may revoke, suspend, or decline to grant a license if a licensee,
its employees, or its agents knowingly employ any person against whom a final
cease and desist order has been issued because of a violation of this chapter or
because of such person´s own license having been suspended or revoked
within the 12 months immediately preceding such persons first becoming so
employed.
7-9-5.
(a)
Upon the filing of an application in a form prescribed by the commissioner and
accompanied by the required fee and documents, the commissioner shall
investigate whether the requirements prescribed by this chapter have been
satisfied. If the commissioner finds that the requirements have been satisfied
and approves the application, the commissioner shall issue to the applicant a
license to engage in the deferred presentment services business in this
state.
(b)
The license issued pursuant to subsection (a) of this Code section shall be
conspicuously posted in each place of business of the licensee.
(c)
A license issued pursuant to this chapter shall remain in force and effect for a
period of one year after its date of issuance unless earlier surrendered,
suspended, or revoked. All licenses shall expire on June 30 following issuance.
The commissioner is authorized to prorate the initial license fee for
applications that will expire in fewer than 12 calendar months; but if a license
is later surrendered, suspended, or revoked, no prorating of fees shall be
authorized.
7-9-6.
(a)
An application for a license under this chapter shall be denied for the failure
of the applicant to comply with the prescribed requirements of this chapter and
such denial shall be subject to notice and a hearing.
(b)
In any hearing on the denial of a license, the burden of proving entitlement to
a license shall be on the applicant. The commissioner may summarily deny
without notice or hearing any incomplete or inadequate application or any
application that includes any person who:
(1)
Controls the applicant or is a director, officer, manager, member, or
shareholder of 10 percent or more of the applicant´s outstanding stock;
and
(2)
Has had a conviction of a felony involving moral turpitude or has had a license
for deferred presentment services suspended or revoked in any state within one
year preceding the date of the application.
7-9-7.
(a)
A license issued pursuant to this chapter is not transferable or
assignable.
(b)
As used in this Code section, the term 'control' means:
(1)
In the case of a corporation, direct or indirect ownership or the right to
control 10 percent or more of the voting shares of the corporation or the
ability of a person to elect a majority of the directors or otherwise effect a
change in policy; and
(2)
In the case of any other entity, the ability to change the principals of the
organization, whether active or passive.
(c)
The prior written approval of the commissioner is required for the continued
operation of a deferred presentment services business whenever a change in
control of a licensee is proposed.
(d)
The commissioner may require a licensee to provide information that the
commissioner deems necessary in order to determine whether a new application is
required when a change in control of a licensee is requested. Administrative
costs incurred by the commissioner in investigating a change of control request,
or where such a request is found to have been required, shall be paid by the
person requesting such approval, subject to the limitations set forth in this
chapter and the regulations promulgated under this chapter.
(e)
A licensee shall notify the department in writing five days before making any
change in the licensee´s business location or name.
7-9-8.
Within
15 days following the occurrence of any one of the following events, a licensee
shall file a written report with the commissioner describing such event and its
expected impact on the activities of the licensee in this state, any one of
which may be grounds for the revocation or suspension of a license:
(1)
The institution of revocation or suspension proceedings against the licensee by
any state or governmental authority;
(2)
The denial of the opportunity to engage in the business of deferred presentment
services by any state or governmental authority;
(3)
Any felony indictment of the licensee or any of its directors, officers,
managers, or principals;
(4)
Any felony conviction of the licensee or any of its directors, officers, or
principals; provided, however, that conviction of a felony involving moral
turpitude shall constitute grounds for immediate revocation of a license;
or
(5)
Such other events as the commissioner may determine and identify by rule or
regulation.
7-9-9.
A
license may be renewed for a period of one year upon the filing of an
application conforming to the requirements of this chapter with such
modifications as the department may require. No investigation fee shall be
payable in connection with such renewal application, but an annual license fee
of $1,000.00 for each location shall be paid with each renewal application.
Such annual license fee shall not be refunded or prorated if the renewal
application is approved. If the renewal is denied, one-half of the total fee
shall be refunded, unless the applicant contests the denial and such denial is
upheld after a hearing. Upon a denial becoming final, the applicant may not
initiate new deferred presentment services transactions, but may continue
collection efforts on all outstanding transactions. If a renewal application is
filed with the department by the due date established by department regulation,
the license sought to be renewed shall continue in force until the issuance by
the department of the renewal license or denial.
7-9-10.
(a)
A person licensed pursuant to this chapter shall:
(1)
Comply with all applicable provisions of state and federal law regarding cash
transactions and cash transaction reporting;
(2)
Display its license in a conspicuous location in each place of
business;
(3)
Display in a conspicuous location in each place of business the name and
toll-free telephone number of a consumer credit counseling service
organization;
(4)
Maintain and use in its business any books, accounts, and records the
commissioner may require to carry into effect the provisions of this chapter and
the administrative regulations issued under this chapter;
(5)
Post at any place of business where deferred presentment services are provided a
notice of the charges imposed for such deferred presentment
services;
(6)
Preserve its books, accounts, and records for at least two years or such longer
period as provided by regulations. The books, accounts, and records must be
maintained separately from those relating to any other business or businesses in
which the person is engaged;
(7)
Provide the following notice in a prominent place on each deferred presentment
services agreement in at least ten-point type:
'A
deferred presentment services transaction is not intended to meet long-term
financial needs. A deferred presentment services transaction should be used
only to meet short-term cash needs.'; and
(8)
Provide the following notice in a prominent place on each deferred presentment
services agreement in at least 12 point boldface type:
'State
law prohibits deferred presentment services transactions exceeding $750 total
debt or 25% of your monthly gross income from any single deferred presentment
services provider. Exceeding this amount may create financial hardships for you
and your family. You have the right to rescind this transaction on or before
the close of the next business day following this transaction.'
(b)
Each deferred presentment services transaction shall be documented by a written
agreement signed by both the licensee and consumer. The written agreement shall
contain the name of the consumer, the transaction date, the amount of the check,
the annual percentage rate charged, and a statement of the total amount of
service fees charged, expressed both as a dollar amount and an annual percentage
rate consistent with the format and content of the federal Truth-In-Lending Act.
In addition, the written agreement shall include all disclosures required by
this Code section. The written agreement shall set a date, not more than 31
days after the deferred presentment services transaction date, upon which the
check may be deposited or negotiated.
(c)
The written agreement shall not contain any of the following provisions: a hold
harmless clause; a confession of judgment clause; a mandatory arbitration clause
that does not comply with the standards set forth in the statement of principles
of the National Consumer Dispute Advisory Committee of the American Arbitration
Association in effect on July 1, 2007; any provision in which the consumer
agrees not to assert a claim or defense arising out of the contract; any
assignment of or order for payment of wages or other compensation for services;
or any waiver by the consumer of any provision of this chapter. Selling any
insurance of any kind in connection with the making or collecting of a deferred
deposit transaction is prohibited.
(d)
A transaction is completed when the licensee presents the check or debits the
consumer´s checking account for payment or the consumer redeems the check
by paying the full amount of the check to the holder. The consumer shall not be
charged any additional charge or fee for cashing the licensee´s business
check or money order. Once the consumer has completed the deferred presentment
services transaction, the consumer may enter into a new deferred presentment
agreement with the licensee.
(e)
A licensee may charge a service fee for each deferred presentment services
transaction, which service fee may not exceed $15.00 per $100.00 or portion
thereof borrowed. The licensee may charge only those fees authorized in this
chapter in connection with a deferred presentment services
transaction.
(f)
A consumer shall have the right to rescind, at no cost, the deferred presentment
services transaction on or before the close of the next business day following
the transaction. In order to rescind a deferred presentment services
transaction, a consumer need only inform the licensee of the consumer´s
desire to rescind and return to the licensee cash in an amount equal to the
amount financed.
(g)
The maker of a check shall have the right to redeem the check from the licensee
before the agreed date of presentment upon payment to the licensee of the full
amount of the check in cash or its equivalent.
(h)
Proceeds to the maker in a deferred presentment services transaction may be made
in the form of a licensee´s business check, money order, debit, or
cash.
(i)
A consumer shall be permitted to make partial payments in accordance with Code
Section 7-9-12.
(j)
Before a licensee presents for payment or deposit a check accepted by a
licensee, the check shall be endorsed with the actual name under which the
licensee is doing business.
(k)
If a check is returned to the licensee from a payor financial institution due to
a closed account or a stop payment order, the licensee shall have the right to
all civil means and fees available and allowed by Code Section 13-6-15;
provided, however, that double damages shall not be allowed. The provisions of
paragraph (3) of subsection (e) of Code Section 13-6-15 shall not apply to this
Code section.
(l)
If a check is returned to a licensee under the circumstances described in
paragraph (1) of subsection (a) of Code Section 16-9-20, the individual who
issued the check shall be subject to prosecution under Code Section 16-9-20.
Except as expressly provided in this subsection, no individual who issues a
check to a licensee under this chapter shall be convicted of or considered to
have violated any other provision of Code Section 16-9-20.
7-9-11.
A
person licensed pursuant to this chapter shall not:
(1)
Require a consumer to provide security for the transaction or require the
consumer to provide guaranty from another person;
(2)
Allow any consumer to have multiple transactions from the same deferred
presentment services provider;
(3)
Allow a transaction with an aggregate face value exceeding the lesser of
$750.00 or 25 percent of the consumer´s monthly gross income;
(4)
Use any device, plan, or agreement, including agreements with affiliated
licensees, or use any agreements with any check cashers, either formal or
informal, with the intent to obtain greater charges than otherwise would be
authorized by this chapter. Such prohibition shall include, but not be limited
to, any fee to cash a check given to a consumer by a licensee;
(5)
Charge any fees not specifically authorized in this chapter;
(6)
Alter or delete the date on any check accepted by the licensee, accept an
undated check, or accept a check dated on a date other than the date on which
the licensee accepts the check;
(7)
Engage in unfair or deceptive acts, practices, or advertising or pursue a course
of action not in good faith or fair dealing in the conduct of the licensed
business;
(8)
Except as specifically authorized under this chapter, use or threaten to use the
criminal process available under Code Section 16-9-20 to collect on a deferred
presentment services transaction or any civil process to collect the payment of
a deferred presentment services transaction not generally available to creditors
to collect on consumer loans in default;
(9)
Allow a consumer to renew or roll over a deferred presentment services
transaction by paying only an additional fee to extend the due date of the
existing transaction; or
(10)
Knowingly offer or provide deferred presentment services or a cash advance of
any kind to an active duty member of the United States military or his or her
dependents.
7-9-12.
(a)
A licensee must provide a consumer written notice of the consumer´s right
to request a repayment plan according to subsection (b) of this Code section.
The form of such written notice shall be either prescribed or approved by the
department and such notice shall be set forth conspicuously both at the point of
sale and in every deferred presentment services agreement.
(b)
If a consumer is unable to pay on the due date the full amount owing under a
deferred presentment services transaction with a licensee, then the consumer
shall have the right to request in writing from such licensee a mandatory
repayment plan. The licensee shall be required to provide to such consumer such
a repayment plan, subject to the terms and conditions set forth below, at least
once in a 12 month period. A consumer who has requested a repayment plan may
repay the amount owed according to the following terms:
(1)
The consumer must request the repayment plan, in writing, on or before the due
date of the transaction;
(2)
The consumer shall agree not to enter into any additional deferred presentment
services transactions during or for seven days following the payment plan term
with any other licensee;
(3)
The consumer shall be allowed to repay the transaction in no more than four
equal installments with one installment due on each of the consumer´s next
four pay dates; and
(4)
The licensee shall not charge a consumer any additional fee for utilizing the
mandatory repayment plan.
7-9-13.
(a)
Whenever it appears to the department that any person required to be licensed
under this chapter or any person employed by or acting as an agent for a
licensee has violated any law of this state or any order or regulation of the
department, the department may issue an initial written order requiring such
person to cease and desist immediately from such unauthorized practices. Such
cease and desist order shall be final 20 days after it is issued unless the
person to whom it is issued makes a written request within such 20 day period
for a hearing. The hearing shall be conducted in accordance with Chapter 13 of
Title 50, the 'Georgia Administrative Procedure Act.' A cease and desist order
to an unlicensed person that orders such person to cease engaging in a deferred
presentment services business without a license shall be final 30 days from the
date of issuance with no opportunity for an administrative hearing. If the
proper license is obtained within the 30 day period, the department shall
rescind the order. All final orders of the department are conclusive and
subject only to judicial review under Code Section 7-1-90.
(b)
Whenever a person required to be licensed under this chapter or any such
person´s employee or agent fails to comply with the terms of an order of
the department that has been properly issued under the circumstances, the
department, upon notice of three days to such person, may, through the Attorney
General, petition the court for an order directing such person to obey the order
of the department within the period of time as shall be fixed by the court.
Upon the filing of such petition, the court shall allow a motion to show cause
why such petition should not be granted. Whenever, after a hearing upon the
merits or after failure of such person to appear when ordered, it shall appear
that the order of the department was properly issued, the court shall grant the
petition of the department.
(c)
Any person required to be licensed under this chapter or any such person´s
employee or agent who violates the terms of any order issued pursuant to this
Code section shall be liable for a civil penalty not to exceed $1,000.00. Each
day during which the violation continues shall constitute a separate offense.
In determining the amount of penalty, the department shall take into account the
appropriateness of the penalty relative to the size of the financial resources
of such person, the good faith efforts of such person to comply with the order,
the gravity of the violation, any history of violations by such person, and such
other factors or circumstances as shall have contributed to the violation. The
department may at its discretion compromise, modify, or refund any penalty that
is subject to imposition or has been imposed pursuant to this Code section. Any
person assessed as provided in this subsection shall have the right to request a
hearing on the matter within ten days after notification of the assessment has
been served upon the licensee involved; otherwise, such penalty shall be final
except as to judicial review as provided in Code Section 7-1-90.
(d)
The department may by rule or regulation prescribe administrative fines or
penalties for violations of this chapter or of any rules or regulations
promulgated by authority of this chapter, which may include requiring refunds of
fees to consumers if such fees were not in compliance with this
chapter.
(e)
Initial judicial review of the decision of the department entered pursuant to
this Code section shall be available solely in the Superior Court of Fulton
County.
7-9-14.
The
commissioner may enter into consent orders at any time with any authorized
person to resolve any matter arising under this chapter. A consent order shall
be signed by the person to whom it is issued, or such person´s duly
authorized representative, and shall indicate agreement to the terms contained
therein. A consent order need not constitute an admission by any person that
any provision of this chapter or any rule, regulation, or order promulgated or
issued under this chapter has been violated, nor need it constitute a finding by
the commissioner that such person has violated any provision of this chapter or
any rule, regulation, or order promulgated or issued under this chapter.
Notwithstanding the issuance of a consent order, the commissioner may seek civil
or criminal penalties or administrative fines concerning matters encompassed by
the consent order. In cases involving extraordinary circumstances requiring
immediate action, the commissioner may take any enforcement action authorized by
Code Section 50-13-18. All such actions shall be final when taken except as to
judicial review as provided in Code Section 7-1-90.
7-9-15.
(a)
In addition to the remedies available under subsection (b) of this Code section,
any person aggrieved by the conduct of a licensee under this chapter in
connection with the licensee´s regulated activities may file a written
complaint with the commissioner, who may investigate the complaint. In the
course of the investigation of any complaint or suspected noncompliance with
this chapter, the commissioner may subpoena witnesses; administer oaths; examine
any individual under oath; and compel the production of records, books, papers,
contracts, or other documents relevant to such investigation. If any person
fails to comply with a subpoena of the commissioner under this chapter or to
testify concerning any matter about which the person may be interrogated under
this chapter, the commissioner may petition any principal court of competent
jurisdiction for enforcement. If any licensee or its employee or agent fails to
comply with a court ordered subpoena, its license shall be suspended pending
compliance with the subpoena. If the commissioner receives a complaint or
otherwise has a reasonable suspicion of noncompliance with this chapter, he or
she shall have the administrative power to investigate and take administrative
action or refer a situation to law enforcement authorities when
appropriate.
(b)
If any deferred presentment transaction is made in willful violation of the
provisions of this Code section, except as a result of a bona fide error, such
transaction may be canceled by a court of competent jurisdiction.
(c)
Subject to the provisions of subsection (d) of this Code section in which a
licensee and consumer may enter into an arbitration agreement, any other
agreement whereby the consumer waives the benefits of this Code section shall be
deemed to be against public policy and void.
(d)
Any deferred presentment services transaction in violation of this chapter shall
be subject to an action, which may be brought in a court of competent
jurisdiction, by the consumer seeking damages, reasonable attorney´s fees,
and costs; provided, however, that nothing in this subsection shall prohibit a
licensee and consumer from entering into an arbitration agreement whereby the
licensee and consumer agree to waive their right to file a lawsuit and to
proceed in court to have a jury trial and instead agree to submit their dispute
to an arbitrator for a decision.
7-9-16.
To
assure compliance with the provisions of this chapter, the commissioner may
examine the relevant business books and records of any licensee. The
commissioner may charge and collect an examination fee as established by rule or
regulation for any compliance examination conducted by the commissioner. The
commissioner, for the purpose of discovering violations of this chapter and for
the purpose of determining whether persons are subject to the provisions of this
chapter, is authorized to examine persons licensed under this chapter and
persons reasonably suspected by the commissioner of conducting business which
requires a license under this chapter, including all relevant books, records,
and papers employed by such persons in the transaction of business, and to
subpoena witnesses and documents and examine individuals under oath concerning
matters relating to the business of such persons, or such other matters as may
be relevant to the discovery of violations of this chapter, including without
limitation the conduct of business without a license as required by this
chapter.
7-9-17.
(a)
Each licensee shall file an annual report together with a license renewal
application with the commissioner containing the following
information:
(1)
Balance sheets, statements of income and expense, and such other statistical
information as may be required by the commissioner, consistent with generally
accepted accounting principles, for the purpose of determining the volume and
proper accounting for operations under this chapter;
(2)
If the licensee is a corporation, the names and addresses of its officers and
directors and its registered agent for service of process; if the licensee is a
partnership, the names and addresses of the partners; or, if the licensee is a
limited liability company, the names and addresses of the board of governors of
the limited liability company and its registered agent for service of
process;
(3)
The names and addresses of all affiliated entities regulated under this title
doing business in this state;
(4)
The location of all places of business operated by the licensee and the nature
of the business conducted at each location;
(5)
The names and addresses of persons owning controlling interest in each licensee;
and
(6)
Such other information as the department deems appropriate.
(b)
If the licensee holds two or more licenses or is affiliated with other
licensees, a composite report complying with the requirements of subsection (a)
of this Code section may be filed for all licenses.
(c)
All reports required by this Code section shall be filed in such form as may
reasonably be required by the commissioner and shall be sworn to by an officer
of the licensee. The information submitted by licensees pursuant to this
chapter shall be afforded the same degree of confidentiality by the department
and the commissioner as is applicable to all such other reports filed with the
commissioner.
7-9-18.
All
penalties and fines recovered by the department shall be paid into the state
treasury to the credit of the general fund; provided, however, that the
department at its discretion may remit such amounts recovered, net of the cost
of recovery, if it makes an accounting of all such costs and expenses of
recovery in the same manner as prescribed for judgments received through
derivative actions pursuant to the provisions of Code Section
7-1-441.
7-9-19.
The
commissioner may promulgate reasonable rules and regulations in accordance with
Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act', and not
inconsistent with the laws of this state for the administration and enforcement
of this chapter and its intent.
7-9-20.
If
any provision of this chapter or the application thereof to any person or
circumstance is held invalid for any reason, the invalidity shall not affect the
other provisions or any other application of this chapter which can be given
effect without the invalid provisions or application.
7-9-21.
To
the extent this chapter conflicts with any other state law, rule, regulation, or
ordinance, this chapter is superior and supersedes those laws, rules,
regulations, or ordinances for the purposes of regulating deferred presentment
services in the State of Georgia."
SECTION
2.
Title
16 of the Official Code of Georgia Annotated, relating to crimes and offenses,
is amended by repealing Chapter 17, relating to payday lending, and designating
said chapter as reserved.
SECTION
3.
This
Act shall become effective on July 1, 2007.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.