_______________________________________________
HOUSE BILL 1225
_______________________________________________
Passed Legislature - 1993 Regular Session
State of Washington 53rd Legislature 1993
Regular Session
By
Read first time 01/20/93. Referred to Committee
on Financial Institutions & Insurance.
Concerning the collection of
allowable fees in connection with delinquent debts, repossessions, and
foreclosures.
AN ACT Relating to the
collection of allowable fees in connection with delinquent debts,
repossessions, and foreclosures; and amending RCW 31.04.105.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 31.04.105 and 1991 c
208 s 11 are each amended to read as follows:
Every licensee may:
(1) Lend money at a
rate that does not exceed twenty-five percent per annum as determined by the
simple interest method of calculating interest owed;
(2) In connection with
the making of a loan, charge the borrower a nonrefundable, prepaid, loan
origination fee not to exceed four percent of the first twenty thousand dollars
and two percent thereafter of the principal amount of the loan advanced to or
for the direct benefit of the borrower, which fee may be included in the
principal balance of the loan;
(3) Agree with the
borrower for the payment of fees for title insurance, appraisals, recording,
reconveyance, and releasing when such fees are actually paid by the licensee to
a third party for such services or purposes and may include such fees in the
amount of the loan. However, no charge may be collected unless a loan is made,
except for reasonable fees properly incurred in connection with the appraisal
of property by a qualified, independent, professional, third-party appraiser
selected by the borrower and approved by the lender or in the absence of
borrower selection, selected by the lender;
(4) Charge and collect
a penalty of ten cents or less on each dollar of any installment payment
delinquent ten days or more;
(5) Collect from the
debtor reasonable attorneys' fees, actual expenses, and costs incurred in
connection with the collection of a delinquent debt, a repossession, or a
foreclosure when a debt is referred for collection to an attorney who is not a
salaried employee of the licensee;
(6) Make open-end
loans as provided in this chapter;
(((6))) (7)
Charge and collect a fee for dishonored checks in an amount approved by the
supervisor; and
(((7)))
(8) In accordance with Title 48 RCW, sell insurance covering real and
personal property, covering the life or disability or both of the borrower, and
covering the involuntary unemployment of the borrower.
