Delayed Deposit Transaction

Delayed Deposit Transaction 1. Records a. Licensee shall maintain all files and records at its licensed office. b. Licensee shall maintain a separate file folder for each customer containing documentation for all delayed deposit transactions. c. Licensee shall maintain a daily journal containing a record of all delayed deposit transactions in consecutively numbered order. The daily journal shall include at least the customer name and transaction date and may be maintained either manually or by computer. In lieu of maintaining a daily journal, Licensee may maintain a file with a copy of each delayed deposit agreement in consecutively numbered order. This number shall be printed on the agreement. Licensee must be able to account for any voided agreements or lapse in numbering sequence. d. The check number must be clearly disclosed on each delayed deposit agreement. e. The date of the transaction and the maturity date must be stated on each delayed deposit agreement. f. A new check must be used for each delayed deposit agreement. (i.e. the same check shall not be reused on subsequent check cashing transactions). 2. Processing Fee The Processing Fee authorized by §75-67-519(7), Miss. Code Ann., shall be disclosed in the delayed deposit agreement. Thirty Dollars ($30.00) is set as the maximum amount a licensee may charge for a check returned for any reason, including, without limitation, insufficient funds, closed account or stop payment. The Processing Fee is considered a one-time charge; regardless of the number of times the check associated with the delayed deposit agreement has been processed. 3. Processing Fee Journal Licensee must maintain a daily journal of all Processing Fees charged along with the following information: a. Copy of check b. Amount of Processing Fee c. Customer name d. Date of transaction e. Check number f. Amount of check g. Documentation verifying the financial institution’s refusal to pay 4. Computation of Annual Percentage Rate Pursuant to Section 75-67-519(3), Miss. Code Ann., the fee charged in a delayed deposit transaction must be disclosed as a dollar amount and as an annual percentage rate (APR) in the delayed deposit agreement. Example: $100.00 delayed deposit transaction due in 14 days, when a $120.00 check is held: $20.00/$100.00 X 365/14 = 521.43 APR Fee ÷ amount financed x 365 (or 360) ÷ number of days = APR 5. Rollover Fee Licensee shall not accept a fee to renew or extend (i.e. rollover) any delayed deposit transaction. The delayed deposit agreement shall not be renewed; the transaction must be collected in full. 6. Checks Written on Joint Bank Accounts Each individual on a joint bank account may write checks in an amount not to exceed an aggregate total of Five Hundred Dollars ($500.00) per individual. However, a separate delayed deposit agreement must accompany each check. 7. Multiple Checks Licensee may accept multiple checks on a customer with the aggregate amount not to exceed Five Hundred Dollars ($500.00). However, a separate delayed deposit agreement must accompany each check. 8. Payment Plan Licensee may set up a payment plan for customers in default. If a customer defaults and Licensee agrees to accept a payment plan and customer later defaults in the payment plan, the Licensee may cash the check but may not receive more than the original amount of the check, plus the Processing Fee set forth in these regulations. Licensee shall maintain supporting evidence of all payments received. 9. Wage Assignments Licensee shall not encumber a customer’s wages in the form of a wage assignment. However, nothing contained herein shall prevent a licensee from garnishing wages pursuant to a court order. 10. Acceptance of Credit Cards as Payment Licensee may accept a credit card as payment on the due date. The Licensee shall not swipe the customer’s credit card at the beginning of a transaction thus encumbering the customer’s funds and later completing the transaction on the due date.