Ga. Comp. R. & Regs. R. 80-14-5-.03 - Closing, Convenience, and Other Fees
(1)
Closing Fees. In addition to any other charges authorized by the Georgia
Installment Loan Act ("Act"), a licensee may collect a closing fee at the time
of making a loan to the extent authorized by O.C.G.A. §§
13-1-14 and
7-3-17.
(a) No licensee may collect a closing fee
unless, prior to the advance of money or the extension of credit, such licensee
conducted an investigation or verification of the borrower's credit history,
residences, references, employment, or sources of income. Each licensee shall
retain on file the procedures that the licensee uses to conduct such
investigations and verifications.
(b) The amount of the closing fee shall be
listed in the loan agreement after the loan fees authorized by O.C.G.A. §
7-3-11. but before the maintenance
charge fee.
(2)
Convenience Fees. In addition to any other charges authorized by the Act, a
licensee may collect convenience fees to offset the cost of receiving payment
by electronic means, to the extent authorized by O.C.G.A. §
13-1-15. If a licensee elects to
calculate convenience fees based on average cost for that specific type of
payment over the preceding calendar year rather than the actual cost, the
licensee shall maintain documentation supporting the calculation of the average
cost.
(3) Unaffiliated Third-Party
Fees. Fees charged to a consumer by a third party unaffiliated with a licensee
to negotiate a payment instrument, including but not limited to check cashing
fees or automated teller machine fees, are not prohibited by the Act.
(4) Late Charges. O.C.G.A. §
7-3-11(4)
specifically provides that a licensee may charge and collect from the borrower
a late or delinquent charge of $10.00 or an amount equal to 5¢ for each $1.00
of any installment which is not paid within five days from the date such
payment is due, whichever is greater, provided that this late or delinquent
charge shall not be collected more than once for the same default. Therefore, a
licensee is not authorized to charge and collect a late or delinquent charge
from a borrower until such time as that borrower has actually failed to pay an
installment within five days after the date such payment was due. Under no
circumstances is a licensee authorized to charge or collect and hold any
unearned late or delinquent charge in advance, to be refunded if said
installment is paid on or within five days from the date such payment is
due.
(5) Charges for Refinancing.
When any debt is renewed or refinanced by any creditor, the consumer shall be
entitled to a refund or credit of that unearned portion of the interest charge
computed as of the date of such refinancing or renewal and pursuant to the
methodology set forth in O.C.G.A. §
7-3-14.
Notes
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