Ga. Comp. R. & Regs. R. 80-14-5-.04 - Unsolicited Live Checks

(1) "Live check" means a negotiable check or other negotiable instrument that may be used by a consumer to activate a loan regulated by the Georgia Installment Loan Act ("Act").

(2) The licensee must maintain in its office a system for:

(a) preventing the offering of an unsolicited live check to an individual who is not credit-worthy; and

(b) protecting the intended recipient of an unsolicited live check and the licensee in the event of the fraudulent conversion of the unsolicited live check.

(3) Any use of an unsolicited live check must contain:

(a) the ZIP+4 code and the name of the county of the recipient in the address line of the live check;

(b) a check number or other tracking number for the loan offered on the live check;

(c) the following statement, printed in 14 point size font boldface type on the face of the live check: "This is a loan.";

(d) the following statements printed on the face of the live check: "Cashing this check requires repayment of the loan plus potential charges. Read all terms.";

(e) the following statement printed clearly and conspicuously in the solicitation or accompanying disclosure statement: "You have the right to file a written complaint with the licensee via [mailing address or email address] and with the Department of Banking and Finance via email at dbfgila@dbf.state.ga.us." and,

(f) the name on record with the Department, unique identifier, and telephone number of the licensee.

(4) The terms of the loan resulting from an unsolicited live check must comply with the Act and the rules and regulations of the Department.

(5) The licensee may not offer or provide insurance or other ancillary products in conjunction with a loan obtained through an unsolicited live check.

(6) The licensee may not send an unsolicited live check to an individual who resides beyond the boundaries of a county in which the licensee has an approved location or beyond the boundaries of any contiguous county in which the licensee has an approved location. In the event a live check is negotiated by a consumer that resides outside the county in which the licensee has an approved location or resides more than twenty-five (25) miles from an approved location, the licensee must provide a means for the consumer to submit payments electronically without imposing a convenience fee pursuant to O.C.G.A. § 13-1-15.

(7) The licensee must report to the Department within ten (10) business days of the licensee having any knowledge of any suspected or confirmed fraud related to an unsolicited live check.

Notes

Ga. Comp. R. & Regs. R. 80-14-5-.04

O.C.G.A. §§ 7-3-10, 7-3-51.

Original Rule entitled "Unsolicited Live Checks" adopted. F. Aug. 19, 2020; eff. Sept. 8, 2020.