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Can you summarize 14A OKST 3-508C?
Supervised Loans > Convenience Fees for Electronic Payments
Short Summary
This legal document governs the ability of lenders to contract for and receive convenience fees from borrowers who make their payments through electronic means such as debit card, electronic funds transfer, electronic check, or other electronic methods. The purpose of these convenience fees is to offset the costs incurred by the lender for accepting and processing electronic payments. The convenience fee imposed by the lender should not exceed the actual cost or four percent (4%) of the electronic payment transaction, whichever is less. The lender must notify the customer of the fee amount prior to completing the electronic payment transaction and provide an opportunity to cancel the transaction without incurring a fee. The lender must also offer alternative payment methods without imposing a convenience fee. Once a borrower elects to make an electronic payment and the convenience fee is collected, it is non-refundable. The term ‘actual costs’ refers to the third-party costs incurred for processing electronic payments. This document does not specify any penalties for non-compliance or violations. The historical data indicates that this law came into effect on November 1, 2018.
Whom does it apply to?
Lenders and borrowers
What does it govern?
Convenience fees for electronic payments
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Oklahoma