Oklahoma § 59-3150.10 - Limits on loan fees, interest rates, loan to income

§ 59-3150.10. Limits on loan fees, interest rates, loan to income

ratios – Payment methods.

A. A licensee authorized to make small loans under this act may

charge and collect fees in a manner consistent with this section.

B. A licensee may only charge and collect a periodic interest

rate not to exceed seventeen percent (17%) per month unless

otherwise provided by this title.

C. The maximum aggregated principal loan amount of all small

loans outstanding across all licensees per customer shall be One

Thousand Five Hundred Dollars ($1,500.00) and adjusted every other

year by the Administrator of the Department of Consumer Credit to

reflect the percentage changes in the Consumer Price Index published

by the Bureau of Labor Statistics of the Department of Labor. To

ensure that the maximum aggregated principal amount is not exceeded,

the licensee shall verify outstanding amounts by using a private

database approved by the Administrator. To comply with the

verification required under this act, a lender may be charged a fee

by the database provider not to exceed Two Dollars and twenty cents

($2.20) for each full or partial 30-day period that a balance is

scheduled to be outstanding.

D. 1. Notwithstanding the maximum aggregate loan amount

established in subsection C of this section, a lender is prohibited

from making a small loan if the total scheduled payments coming due

in a month exceeds twenty percent (20%) of the borrower's gross

monthly income.

2. For the purposes of determining a borrower's gross monthly

income under this subsection, a lender shall obtain and maintain

documentation of the borrower's proof of income or third-party

verification of all income considered in making the borrower's gross

monthly income determination.

3. For the purposes of this subsection, "month" means a period

extending from a given date in one (1) calendar month to the same

date in the succeeding calendar month; or if there is no same date

in the succeeding calendar month, the last day of the succeeding

calendar month.

E. Any small loan under this act shall require payment in the

form of cash, money order, debit card, prepaid credit card,

automated clearinghouse debit (ACH payment), remotely created check

debit (RCC payment) or any other instrument for payment of money on

or after the due date of each billing cycle. If the borrower

chooses to authorize the electronic payment of money, the lender:

Oklahoma Statutes - Title 59. Professions and Occupations

1. Must get written authorization from the borrower to

establish the debit;

2. Must give written notice to the borrower before the initial

funds are transferred;

3. Must get additional written approval from the borrower after

a second failed attempt to make a loan payment due to insufficient

funds; and

4. Is permitted to provide electronic written notices to the

borrower as long as the borrower consents to electronic

communications.

F. If a customer defaults under the terms of a small loan and

the licensee refers the customer's account to an attorney for

collection, the licensee may, if the small loan so provides, charge

and collect from the customer a reasonable attorney fee not to

exceed fifteen percent (15%) of the outstanding amount.

G. If a check, ACH payment or RCC payment is returned to a

licensee from a payor financial institution due to insufficient

funds, a licensee shall have the authority to assess a twenty-fivedollar fee against the maker or drawer of the returned check.

Added by Laws 2019, c. 89, § 12, eff. Nov. 1, 2019.