House Bill 1171

AN ACT TO AMEND SECTION 75-67-517, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A CHECK CASHING BUSINESS TO PASS A THIRD PARTY PROCESSING COMPANY'S FEES FOR THE USE OF A DEBIT OR CREDIT CARD ON TO THE CUSTOMER; TO AMEND SECTION 75-67-619, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A LICENSEE WHO IS AUTHORIZED TO PROVIDE CREDIT AVAILABILITY TRANSACTIONS TO PASS A THIRD-PARTY PROCESSING COMPANY'S FEES FOR THE USE OF A DEBIT OR CREDIT CARD ON TO THE CUSTOMER; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 75-67-517, Mississippi Code of 1972, is amended as follows:

75-67-517. (1) Except as otherwise provided in this section, notwithstanding any other provision of law, no check cashing business licensed under this article shall directly or indirectly charge or collect fees for check cashing services in excess of the following:

(a) Three percent (3%) of the face amount of the check or Five Dollars ($5.00), whichever is greater, for checks issued by the federal government, state government, or any agency of the state or agency of the state or federal government, or any county or municipality of this state.

(b) Ten percent (10%) of the face amount of the check or Five Dollars ($5.00), whichever is greater, for personal checks.

(c) Five percent (5%) of the face amount of the check or Five Dollars ($5.00), whichever is greater, for all other checks, or for money orders.

A licensee may not advance monies on the security of any personal check unless the presenter attests that the check being presented is drawn on a legitimate, open and active account. Except as provided by Section 75-67-519, any licensee who cashes a check for a fee shall deposit the check not later than three (3) business days from the date the check is cashed.

(2) The provisions of subsection (1) shall not include the fees charged by a third-party processing company for the use of a debit or credit card. A check cashing business licensed under this article may pass the third-party processing company's fees on to the customer, if such business provides clear and conspicuous notice to all customers that such fees will be applied to debit and credit card transactions. Such notice must be provided before the customer completes the transaction and must include:

(i) The amount of the fee;

(ii) That the fee is for the use of an alternate payment method; and

(iii) The type of payment methods to which the fee applies.

(c) The amount of the fee identified under this subsection (2) shall be limited to the single transaction cost charged by the third-party processor to the check cashing business for the use of a credit or debit card.

SECTION 2. Section 75-67-619, Mississippi Code of 1972, is amended as follows:

75-67-619. (1) Notwithstanding any other statutory limitation, a licensee authorized to provide credit availability transactions under this article may charge and collect fees and charges in a manner consistent with this section, and may take as security therefor any personal property that is not exempt or prohibited by state or federal law or regulations.

(2) (a) A licensee may charge and collect a monthly handling fee for services, expenses, and costs not to exceed twenty-five percent (25%) of the outstanding principal balance of any credit availability account per month, or any portion thereof, for transactions of Five Hundred Dollars ($500.00) or less. The handling fee shall not be deemed interest for any purpose of law.

(b) A licensee may charge and collect a monthly handling fee for services, expenses, and costs not to exceed twenty-five percent (25%) of the outstanding principal balance of any credit availability account per month, or portion thereof, for transactions in excess of Five Hundred Dollars ($500.00). The handling fee shall not be deemed interest for any purpose of law.

(c) (i) In addition to the charges authorized under this subsection (2), a licensee may also charge and collect an origination fee in the amount of one percent (1%) of the amount disbursed to the account holder or Five Dollars ($5.00), whichever is greater, for costs associated with providing a credit availability transaction.

(ii) The origination fee shall not be deemed interest for any purpose of law.

(3) (a) No credit availability account created under subsection (2)(a) of this section shall have an outstanding principal balance in excess of Five Hundred Dollars ($500.00) at any time.

(b) No credit availability account created under subsection (2)(b) of this section shall have an outstanding principal balance in excess of Two Thousand Five Hundred Dollars ($2,500.00) at any time.

(4) (a) Any credit availability account created under subsection (2)(a) of this section shall be a fully amortized loan, secured or unsecured, payable in equal payments of four (4) to six (6) months calculated on the amount initially disbursed to the account holder plus any fees that may be charged, in an amount and manner provided for under this article.

(b) Any credit availability account created under subsection (2)(b) of this section shall be a fully amortized loan, secured or unsecured, payable in equal payments of six (6) to twelve (12) months calculated on the amount initially disbursed to the account holder plus any fees that may be charged, in an amount and manner provided for under this article.

(5) In the event an account holder is delinquent in payment of a monthly payment under the terms of a credit availability agreement, the licensee may charge and collect from the account holder a late fee of ten percent (10%) of the past-due amount; provided, however, that no such late fee may be charged unless an account holder has failed to pay the past-due amount within ten (10) business days after the due date and provided that such fees are clearly disclosed in the credit availability agreement.

(6) In the event an account holder is in default under the terms of a credit availability agreement for more than sixty (60) days, the licensee may charge and collect from the account holder the following fees in connection with any such default, provided that such fees are clearly disclosed in the credit availability agreement:

(a) If the licensee is required to employ a third party, including an attorney, to collect on the account the licensee may:

(i) If the credit availability agreement so provides, charge and collect a reasonable collection fee and attorney's fee; and

(ii) If the credit availability agreement so provides, shall be entitled to recover from the account holder all court costs incurred and to recover any court-awarded damages, including those incurred on appeal.

(b) If applicable, the licensee may charge and collect from the account holder any fees and costs relating to the repossession and sale of collateral, including, but not limited to, fees and costs associated with the repossession, storage, preparation for sale and sale of collateral.

(7) (a) The provisions of subsections (1) through (6) shall not include the fees charged by a third-party processing company for the use of a debit or credit card.

(b) A licensee authorized to provide credit availability transactions under this article may pass the third party processing company's fees on to the customer, if such licensee provides clear and conspicuous notice to all customers that such fees will be applied to debit and credit card transactions. Such notice must be provided before the customer completes the transaction and must include:

(i) The amount of the fee;

(ii) That the fee is for the use of an alternate payment method; and

(iii) The type of payment methods to which the fee applies.

(c) The amount of the fee identified under this subsection (7) shall be limited to the single transaction cost charged by the third-party processor to the licensee authorized to provide credit availability transactions for the use of a credit or debit card.

SECTION 3. This act shall take effect and be in force from and after July 1, 2024.