Post-dated checks.

WORKING DRAFT
2011
STATE OF
WYOMING
11LSO-0392

HOUSE BILL
NO.
HB0231

Post-dated checks.

Sponsored by:
Representative(s) Zwonitzer, Dn., Pedersen and Throne

A BILL

for

AN ACT relating to the uniform consumer credit code; providing for notification of pay-day check cashing laws; providing for a limit on amount financed; modifying interest charges and maximum term;
providing a penalty for a post-dated check cashier who violates this act as specified;
allowing for suspension of
a
post-dated check casher's license; and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 40
‑
14
‑
365

and
40-14-366 are
created to read:

40
‑
14
‑
365.

Penalties.

(a)

A post-dated check casher is guilty of a misdemeanor
punishable by a fine of not more than
seven hundred fifty dollars ($750.00)
if he knowingly
violates W.S. 40
‑
14
‑
363(a) by loaning a post-dated check borrower any funds
which exceed
four
hundred dollars ($
4
00.00) in
outstanding
post-dated check or similar arrange
ment loans to that borrower
.

(b)

A post-dated check casher is guilty of a misdemeanor
punishable by a fine of not more than
seven hundred fifty dollars ($750.00) if he
knowingly
violates W.S. 40
‑
14
‑
364 by accepting payment
, refinancing or consolidating
a
post-dated check or similar arrangement
from the proceeds of another post-dated check or similar arrangement
.
A post-dated check casher who violates this subsection shall have his license suspended or revoked by the administrator. A license suspension pursuant to this subsection shall not exceed twelve (12) months.

(c
)

A post-dated check casher is guilty of a misdemeanor
punishable by a fine of not more than
two hundred fifty dollars ($250.00)
if he
fails to obtain the
signed
written notice required under W.S. 40
‑
14
‑
366 before issuing a post-dated check loan.

40
‑
14
‑
366
.

Notification.

(a)

A post-dated check casher shall provide the following written notice with each post-dated check or similar arrangement and obtain the signature of the consumer where indicated:

NOTICE

1.

STATE LAW PROVIDES THAT YOU
SHALL NOT BE ELIGIBLE TO RECEIVE
A
LOAN FROM
POST-DATED CHECK
S
OR SIMILAR ARRANGEMENT
S
IF YOUR CURRENT BALANCE OF
LOANS FROM POST-D
ATED CHECK
S
OR SIMILAR ARRANGEMENT
S
E
XCEEDS
FOUR
HUNDRED DOLLARS ($
4
00.00)
. FAILURE TO OBEY THIS LAW COULD CREATE SEVERE FINANCIAL HARDSHIP FOR YOU AND YOUR FAMILY.

2.

STATE LAW PROHIBITS A POST-DATED
CHECK
CASHER FROM
KNOWINGLY L
OAN
ING

A POST-DATED CHECK BORROWER ANY FUNDS
WHICH
EXCEED
FOUR
HUNDRED DOLLARS ($
4
00.00) IN

OUTSTANDING
POST-DATED CHECK OR SIMILAR ARRANGE
MENT LOANS TO THAT
BORROWER
.

3.

STATE LAW REQUIRES THAT A POST-DATED CHECK CASHER
OBTAINS THE SIGNATURE OF A PROSPE
CTIVE POST-DATED CHECK BORROWER
ACKNOWLEDGING THAT THE PROSPECTIVE

POS
T-DATED CHECK BORROWER DOES NOT HAVE
MORE THAN
FOUR
HUNDRED DOLLARS ($
4
00.00)
IN
OUTSTANDING LOANS FROM
POST-DATED CHECK
S
OR SIMILAR ARRANGEMENT
S
.

YOU MUST SIGN THE FOLLOWING STATEMENT:

I DO NOT HAVE
OUTSTANDING
LOANS FROM
POST-DATED CHECK
S
OR SIMILAR ARRANGEMENT
S

IN EXCESS OF
FOUR
HUNDRED DOLLARS ($
4
00.00)
. IN ADDITION, THE LOAN I AM ABOUT TO RECEIVE WILL NOT RESULT IN MY
OUTSTANDING POST-DATED CHECK OR SIMILAR LOAN
BALANCE
EXCEEDING

FOUR
HU
NDRED DOLLARS ($4
00.00)
.

(SIGNATURE OF DRAWER)

4
.

STATE LAW PROHIBITS A POST-DATED CHECK OR SIMILAR ARRANGEMENT FROM BEING REPAID, REFINANCED OR OTHERWISE CONSOLIDATED BY PROCEEDS OF ANOTHER POST-DATED CHECK OR SIMILAR ARRANGEMENT ACCEPTED BY THE SAME POST-DATED CHECK CASHER.

Section 2.

W.S. 40
‑
14
‑
362(a)(intro) and 40
‑
14
‑
363(a), (b) and by creating a new subsection (d) are amended to read:

40
‑
14
‑
362.

Definitions.

(a)

As used in W.S. 40
‑
14
‑
362 through
40
‑
14
‑
364
40
‑
14
‑
365
:

40
‑
14
‑
363.

License required; post-dated check finance charge; limits on amount financed and terms; minimum finance charge.

(a)

No person shall engage in business as a post-dated check casher in this state unless licensed in accordance with W.S. 40
‑
14
‑
634. No post-dated check casher may contract for, charge or receive any amount as a charge in connection with a post
-
dated check or similar arrangement other than a post
-
dated check finance charge as stated in this subsection.
The maximum amount of any post-dated check shall not exceed
four
hundred dollars ($
4
00.00). No person shall
be
eligible to receive a loan from post-dated checks or similar arrangements if your current balance of loans from post-dated checks or similar arrangements exceeds four hundred dollars ($400.00).
No post-dated check casher shall knowingly loan
a post-dated check borrower any funds which exceed
four
hundred dollars ($
4
00.00) in outstanding post-dated check or similar arrangement loans to that borrower
.
No post-dated check finance charge shall exceed the greater of
thirty dollars ($30.00) or
twenty percent (20%)
fifteen percent (15%)
per month

or forty-five percent (45%) annually
on the principal balance of the post-dated check or similar arrangement.

(b)

The maximum term of any post-dated check or similar arrangement subject to this part shall be
one (1)
three (3)
calendar
month
months
.

(d)

If the administrator, acting in accordance with the procedural requirements of W.S. 40
‑
14
‑
635, finds that a post-dated check casher has
violated
this section result
ing
in the post-dated check casher refunding excess charges to the consumer, the post-dated check casher's license may be revoked or suspended. Notwithstanding W.S. 40
‑
14
‑
635, a post-dated check casher's license suspen
sion
pursuant to this subsection shall not
exceed
twelve (12) months.

Section
3
.

This act is effective July 1, 2011.

(END)

1
HB0231