§ 6213. Powers conferred on licensees
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and Banking
7 P.S. § 6213
§ 6213. Powers conferred on licensees
In addition to the general powers conferred upon a corporation by the Business Corporation Law of this Commonwealth,1 a corporation licensed under this act shall have power and authority:
E. To charge, contract for, receive or collect interest or discount at a rate not to exceed nine dollars and fifty cents ($9.50) per one hundred dollars ($100) per year when the contract is repayable within forty-eight (48) months from the date of making. When the contract is repayable more than forty-eight (48) months from the date of making, the rate of interest or discount which may be charged, contracted for, received or collected, shall not exceed nine dollars and fifty cents ($9.50) per one hundred dollars ($100) per year for the first forty-eight (48) months of the term of the contract plus six dollars ($6) per one hundred dollars ($100) per year for any remainder of the term of the contract. Such interest or discount shall be computed at the time the loan is made on the face amount of the contract for the full term of the contract from the date of the contract to the date of the scheduled maturity notwithstanding any requirement for installment payments. On contracts for periods which are less or greater than one year, or which are not a multiple of one year, the interest or discount shall be computed proportionately on even calendar months: Provided, however, That for a period of less than one month the computation may be based on a full calendar month. The face amount of any note or contract made pursuant to this act may, notwithstanding any other provision, exceed twenty-five thousand dollars ($25,000) by the amount of interest or discount and service or other charge authorized by this act collected or deducted in advance or added to the principal at the time of making the loan. As an alternative to the rates provided for in this clause, a licensee may charge, contract for, and collect interest at the rate and in the manner provided for in section 17.1 A:2 Provided, however, That on loans secured by a security interest, mortgage or other lien on real property, and in which the principal amount exceeds five thousand dollars ($5,000), a licensee may not charge, contract for, receive, or collect interest in excess of the rate specified in section 9 of the act of December 12, 1980 (P.L. 1179, No. 219),3 known as the “Secondary Mortgage Loan Act.”
G. To charge, contract for, or collect for interest or discount and service charge a minimum charge of three dollars ($3.00) on any contract of twenty-five dollars ($25) or less, which is payable in one year by a single payment, or is payable in one year, by installment payments and a minimum charge of six dollars ($6.00) on any contract in excess of twenty-five dollars ($25), which is payable in one year by a single payment, or is payable in one year by installment payments. On contracts for periods which are less or greater than one year, a proportionate minimum charge may be collected which shall be computed on even calendar months: Provided, however, That for a period less than one month the computation of the minimum charge may be based on a full calendar month.
H. To collect or deduct interest or discount and service charges in advance; or to add interest or discount and service charges to the principal amount of the contract and divide the total into equal or substantially equal installment payments; or to collect interest or discount and service charges wholly or partially at any time during the term of the contract; or to collect interest or discount and service charges at the end of the term of the contract.
K. To collect an additional charge for extension, deferment or default in the payment of any contract or for extension, deferment or default in the payment of any installment on a contract at the rate of one and one-half per cent (1 ½ %) per month on the amount extended, deferred or in arrears: Provided, however, A minimum charge of one dollar ($1) may be collected for any extension, deferment or default of ten (10) or more days.
M. To collect from the consumer, in addition to the interest or discount and service charges permitted under this act, the actual fees charged by a public official or agency of the Commonwealth for recording and satisfying a judgment, mortgage, encumbrance or lien on any real or personal property which constitutes security on a contract.
N. To collect from the consumer, in addition to the interest or discount and service charges permitted under this act, the premium actually paid for insurance required or obtained as security for, or by reason of, a loan made or contract purchased, provided insurance is obtained from an insurance company authorized by the laws of Pennsylvania to conduct business in this Commonwealth. Any benefit or return to the licensee from the sale or provision of such insurance shall not be deemed a violation of this act when the insurance is written pursuant to the laws of this Commonwealth governing insurance.
Q. To conduct the business regulated by this act in any licensed place of business where another business is conducted by the licensee or another person unless the Secretary of Banking shall find, after a hearing, the conduct of the other business has concealed evasions of this act and shall order such person to desist from such conduct and to offer other services and products for voluntary purchase subject to the provisions of this clause.
(ii) when the applicant has been advised that the loan is approved and products or services are then offered orally, by telephone or otherwise, the applicant shall also be advised that the purchase of the service or product is not required in order to qualify for the loan and that the purchase thereof is voluntary;
(iii) whether or not an oral disclosure has been made as provided in paragraph (ii), the applicant or applicants shall be provided a separate and distinct disclosure written in plain language to be signed by the applicant prior to the closing of the loan which clearly states that the purchase of the service or product is not required in order to obtain the loan and that the purchase thereof is voluntary; and
(iv) if the cost of the service or product is to be included in the loan and paid from the loan proceeds, a separate loan proceeds check shall be drawn, made payable to the borrower or borrowers, for the cost or price of the service or product which may then be endorsed by the borrower or borrowers to the vendor of the service or product after closing at the option of the borrower or borrowers.
(2) A licensee may offer the types of services and products described in this subclause and may conduct or permit others to conduct the types of business described in this subclause within the same office, room or place of business where the licensee conducts its licensed business without prior approval by the Secretary of Banking.
(i) Automobile security plans which provide protection against automobile emergencies and which provide for full or partial reimbursement of certain costs incurred as the result of such emergencies, such as towing, lost key service, emergency transportation, stolen automobile expenses, bail bonds, emergency treatment expense, legal defense and similar or related items, which may include extended warranties, travel discounts and service items, among other things.
(ii) Home security plans which provide protection against home emergencies and provide full or partial reimbursement of certain costs incurred because of home emergencies, such as medical costs, health insurance deductibles, pharmacy service, extended warranties, lost or stolen key protection, credit card liability coverage, and which may include life-saving training, home security training and protection services and products, among other things.
Credits
1937, April 8, P.L. 262, § 13. Amended 1947, June 20, P.L. 665, § 1; 1963, July 30, P.L. 335, § 3; 1970, Dec. 30, P.L. 959, No. 301, § 4; 1976, March 3, P.L. 36, No. 17, § 1; 1982, Dec. 9, P.L. 1072, No. 249, § 4, imd. effective; 1984, Dec. 18, P.L. 1083, No. 216, § 3, imd. effective; 1996, July 2, P.L. 490, No. 80, § 3, imd. effective; 1998, Dec. 21, P.L. 1287, No. 167, § 2, imd. effective.
Footnotes
15 P.S. § 1001 et seq. (repealed); see 15 Pa.C.S.A. § 1101 et seq.
7 P.S. § 6217.1.
7 P.S. § 6609 (repealed); see now, 7 Pa.C.S.A. § 6122.
7 P.S. § 6213, PA ST 7 P.S. § 6213
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document |