§6198.__Violations; civil penalties

The administrator, through the Attorney General, may bring a civil action against a person to recover a civil penalty for knowingly violating this chapter and if the court finds that the defendant has engaged in a knowing violation of this chapter or a violation of an assurance of discontinuance, it may assess a civil penalty of not more than $1,000.__For the purposes of this section, each separate violation may be subject to the penalty permitted under this section, and, for violations of section 6194, each deferred deposit loan made or arranged in violation of that section constitutes a separate violation.

§6199.__Rules

The administrator shall adopt rules to implement the provisions of this chapter as necessary.__Rules adopted pursuant to this chapter are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

SUMMARY

This bill establishes a regulatory mechanism for deferred deposit loans. The bill designates the Department of Professional and Financial Regulation, Office of Consumer Credit Regulation as the regulator of lenders making deferred deposit loans. It sets forth necessary licensing, fees and bond requirements for lenders. The bill also sets out requirements for lender reporting and examination of these lenders.

The bill specifically provides a number of consumer protections, including the disclosure requirements for written loan agreements, maximum loan amounts, limitations on fees charged to consumers, maximum and minimum terms for loan agreements and requirements for collection practices.