69V-560.905. Deferred Presentment Transaction Fees

(1) The transaction fee for a deferred presentment transaction not repayable in installments shall be limited to ten percent (10%) of the amount of currency or payment instrument provided to the drawer. A deferred presentment provider may also charge a verification fee in accordance with Rule 69V-560.801, F.A.C. An example of the computation of the maximum fees allowed by the code in a transaction where the drawer is seeking an advance of $500 would be as follows:

(a) $500 advanced to the drawer;

(b) A $50 transaction fee ($500 X 10%); and,

(c) Up to $5 for the direct costs associated with verification of the drawer’s identity and/or employment. In this example, the provider would provide currency or a payment instrument (Part II licensees) in the amount of $500 to the drawer, and the drawer would provide a personal check in the amount of between $550-$555 depending upon the exact amount of the direct costs of verification, if any, assessed by the provider with respect to this drawer. Unless a drawer has met the requirements for an automatic grace period, the drawer would be required to either redeem his or her personal check in cash (face amount of the check) or the provider would on the due date or a reasonable time thereafter present such personal check to the financial institution for payment.

(2) The transaction fee for a deferred presentment installment transaction shall be disclosed at the time of origination. The transaction fee shall be limited to eight percent (8.00%) of the outstanding transaction balance on a biweekly basis using a simple interest calculation. A drawer’s untimely payment of a scheduled amount shall not increase the drawer’s outstanding transaction balance. Deferred presentment installment fees may not be charged in amounts exceeding those amounts disclosed as finance charges on the deferred presentment installment transaction agreement pursuant to Section 560.404(13), F.S. When calculating extra days for a first installment period that is longer than the remaining installment periods, the transaction fee is limited to a daily simple interest rate of zero point five seven one four two percent (0.57142%) of the outstanding transaction balance per extra day. A deferred presentment provider may also charge a verification fee in accordance with Rule 69V-560.801, F.A.C.

(a) If at the time the deferred presentment transaction is executed the deferred presentment provider accepts one check from a drawer for the entire amount of the deferred presentment transaction, the deferred presentment provider shall return the check being held to the drawer each time the drawer makes a scheduled payment and may accept a replacement check dated as of the date accepted by the deferred presentment provider from the drawer in the amount of the transaction balance then outstanding.

(b) Unless a drawer has met the requirements for a deferral as specified in Section 560.404(23), F.S., or redeemed his or her personal check in cash (face amount of the check), the provider shall on the due date or a reasonable time thereafter present such personal check to the financial institution for payment shown for that particular payment on the deferred presentment installment transaction agreement.

(c) A provider may return unearned fees in the event a deferred presentment installment transaction is paid in full prior to the last scheduled payment due date.

(d) In no event shall the provider retain an amount that exceeds (i) the principal amount of the loan plus (ii) properly accrued transaction fees, and (iii) the amount of any fees accrued pursuant to Section 560.406, F.S. The provider must return any overcharge within ten (10) calendar days of the date the final payment is redeemed in cash or the check being held that represents the final payment has cleared the provider’s financial institution.

(3) Under no circumstances may the deferred presentment provider collect transaction fees from a drawer at the inception of a transaction. A provider shall not collect verification fees from the drawer at the inception of a deferred presentment transaction. All fees with respect to a deferred presentment transaction shall be collected at such time as the drawer redeems his or her personal checks or the provider presents the drawer’s personal checks for payment. For a deferred presentment installment transaction, a provider may collect verification fees from the drawer not to exceed $5. The verification fee for a deferred presentment installment transaction may be collected the first time the drawer redeems a personal check or the first time the provider presents one of the drawer’s personal checks. The verification fees incurred on a deferred presentment installment transaction shall be reflected in the provider’s payment schedule and the drawer’s check(s).

(4) A deferred presentment provider shall not charge, impose, or add any other fees upon a drawer. Examples of such unauthorized fees include, but are not limited to, such items as initial application fees, drawer setup fees, etc.

(5) Under no circumstances shall a provider require that a drawer purchase any other products or services as a condition of the deferred presentment transaction.

Rulemaking Authority 560.105, 560.404 FS. Law Implemented 560.404, 560.405 FS. History–New 12-17-01, Formerly 3C-560.905, Amended 1-13-09, 11-28-19.