OK Amends Provisions Relating to Supervised Lenders and the Charging of Convenience Fees on Consumer Loan Payments

The Oklahoma State Legislature recently amended its statutory provisions under the Uniform Consumer Credit Code (UCCC) by adding a new section that relates to consumer loans and authorizes the charging of convenience fees for certain electronic payments. The amendments also allow supervised lender licensees under the UCCC to sell goods at any location where supervised loans are made, if certain requirements are met.

First, the new Section 3-508c in Title 14A of the Oklahoma Statutes was added to authorize the charging of convenience fees for certain electronic payments.  In summary, this section provides that:

• A lender may charge a convenience fee from any borrower making payment by debit card, electronic funds transfer, electronic check or other electronic means to offset the costs incurred by the lender for accepting and processing electronic payment;
• Any convenience fee imposed and collected by a lender must not exceed the actual cost or 4% of the electronic payment transaction, whichever is less;
• A lender must notify the customer of the amount of the convenience fee prior to completing an electronic payment transaction, and must provide the customer an opportunity to cancel the transaction without incurring a fee; and
• The payment of a convenience fee made under this section is not refundable.

Second, Section 3-512 in Title 14A of the Oklahoma Statutes was modified to now permit a supervised lender licensee under the UCCC to sell goods at any location where supervised loans are made when all of the following conditions are met:

• The licensee must notify the Administrator of the Department of Consumer Credit in writing of the type and nature of goods to be sold at the location of the licensee;
• Any sale of goods authorized under this section must be purchased through a loan with the licensee; and
• All goods sold by the licensee under this section must be restricted to purchase loans made only at A-lender rates and terms.

Both provisions are effective on November 1, 2018.

The full text of Title 14A, Section 3-508c is available here, and the full text of Title 14A, Section 3-512 of the Oklahoma Statutes is available here.