69V-560.908. Deferred Presentment Database Transaction Requirements

(1) Each deferred presentment transaction shall be registered with the deferred presentment database and receive a transaction authorization number evidencing the transaction as being recorded in the deferred presentment database prior to a provider giving currency or a payment instrument (Part II licensees only) to the drawer except as set forth in Rule 69V-560.909, F.A.C. The purpose of this deferred presentment database is to:

(a) Prevent the practice of rollover transactions;

(b) Prevent simultaneous deferred presentment transactions with multiple providers by an individual drawer; and,

(c) Prevent a new deferred presentment transaction by a drawer within 24 hours of the termination of a prior transaction.

(2) The provider will begin each transaction by:

(a) Accessing the deferred presentment database using the assigned user identification and password provided to each employee by the security administrator for the provider;

(b) Conducting a search of the deferred presentment database based upon either a social security number, alien registration number, or ITIN number of the person seeking a new deferred presentment transaction. The deferred presentment database will provide the result of the search indicating whether the person is eligible or ineligible to enter into a new deferred presentment transaction;

(c) If the person is eligible for a new deferred presentment transaction and the borrower intends to enter into a deferred presentment transaction, the provider must submit into the deferred presentment database all of the information required pursuant to Section 560.404(24)(a), F.S., and subsection 69V-560.908(8), F.A.C., to have the transaction registered on the deferred presentment database;

(d) Once all of the required information has been submitted to the deferred presentment database, the deferred presentment database will re-verify the search. If the drawer’s eligibility is confirmed, the deferred presentment transaction will be recorded as open, assigned a transaction authorization number, and the transaction authorization number will be communicated to the provider as evidence that the transaction has been authorized by the deferred presentment database. The provider shall place the transaction authorization number on the deferred presentment agreement; and,

(e) Providing a copy of the agreement to the drawer.

(3) Providers may cancel a deferred presentment agreement before the close of business on the date of the transaction without incurring a transaction fee. If a provider elects to cancel a deferred presentment agreement with a drawer, the provider shall not assess either the transaction fee or the verification fee to the drawer. The provider shall immediately update the transaction fields to indicate that no fees were charged to the drawer and close the transaction on the deferred presentment database.

(4) Providers shall immediately update open transactions on the deferred presentment database to ensure that all identifying information regarding both the drawer and the transaction are accurate, including any comments on the transaction which the provider deems relevant. A provider shall also immediately update the deferred presentment database when:

(a) The check that is the basis of the deferred presentment agreement for a deferred presentment transaction not repayable in installment:

1. Has been redeemed or deposited by the provider, in which case, the date on which the check was redeemed or deposited shall also be entered (including the date the provider sends instructions to process an ACH debit to the drawer’s bank account);

2. A drawer has requested the 60-day grace period in accordance with Section 560.404(22), F.S.;

3. A drawer’s check is returned to the provider as not collected; or

4. A drawer’s check is processed for collection via the ACH system.

(b) The check representing the final payment of the deferred presentment agreement for a deferred presentment installment transaction:

1. Has been redeemed or deposited by the provider, in which case, the date on which the check was redeemed or deposited shall also be entered (including the date the provider sends instructions to process an ACH debit to the drawer’s bank account);

2. A drawer has requested a deferral in accordance with Section 560.404(23), F.S.;

3. A drawer’s check is returned to the provider as not collected; or

4. A drawer’s check is processed for collection via the ACH system.

(5) Providers shall have written procedures for the secure handling of the original checks provided by the drawer in the course of a deferred presentment transaction. Such procedures shall include, at a minimum, the following steps, as appropriate:

(a) That checks must be endorsed in the name of the provider and deposited into an account maintained by the provider at the provider’s financial institution;

(b) That checks redeemed by the drawer shall be returned to the drawer;

(c) That checks processed for collection via the ACH system shall be returned to the drawer, destroyed, or voided by the provider to ensure that the check cannot be negotiated.

(6) Providers shall be responsible for closing all transactions on the deferred presentment database, except as provided in paragraph 69V-560.903(1)(f), F.A.C., immediately when the transaction has terminated, in which case, the provider shall input the date and time a transaction closes, as well as the final payment method, unless the provider has previously entered such payment method. The provider shall also provide a written receipt to the drawer when a check is redeemed in cash, certified funds, or the drawer provides evidence of clearing.

(7) Any inquiry that results in the person being deemed ineligible by the deferred presentment database will immediately provide a printable message with a description of the reason for the determination together with the name, address, and toll-free support number of the deferred presentment database vendor, 1(877)FLA-DPP1. At a minimum, the description shall state that the person is ineligible because he or she:

(a) Has an open transaction with the inquiring provider;

(b) Has an open transaction with another provider; or

(c) Has terminated a prior transaction within 24 hours of the inquiry. A copy of the printable message shall be provided to the person at the time the deferred presentment database renders a determination that the person is not eligible to enter into a new deferred presentment agreement.

(8) The following information must be entered into the deferred presentment database by a provider in order to register a deferred presentment transaction not payable in installments in the database:

(a) All information required pursuant to Section 560.404(24)(a), F.S.;

(b) State where drawer’s driver’s license issued;

(c) Drawer’s date of birth;

(d) Transaction fee;

(e) Verification fee; and,

(f) Date deferred presentment transaction closed.

(9) The following information must be entered into the deferred presentment database by a provider in order to register a deferred presentment transaction payable in installments in the database:

(a) All information required in subsection (8) above;

(b) Number of payments;

(c) Final payment due date; and,

(d) Deferred payment due date, if a payment is deferred pursuant to Section 560.404(23), F.S.

Rulemaking Authority 560.105, 560.404 FS. Law Implemented 560.404, 560.4041 FS. History–New 4-17-02, Formerly 3C-560.908, Amended 9-14-04, 1-13-09, 11-28-19.