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Chapter 208-630 WAC

Last Update: 2/6/13

REGULATION OF CHECK CASHERS AND SELLERS AND SMALL LOANS (PAYDAY LENDERS)

WAC Sections

What definitions are required to understand these rules?
LICENSING REQUIREMENTS
What does a business have to do to operate as a check casher and seller, or to make small loans as a payday lender?
How does a business apply for a check casher's or seller's license or a small loan endorsement to a check casher's or seller's license?
Once a business finishes the application process, when does the director issue a license?
When does the license expire?
Does each location where a licensee makes small loans have to have a small loan endorsement?
Where may a licensee make small loans?
Is there a bond requirement for my license?
What type of bond is necessary and what are the conditions?
How is a bond canceled?
What is the liability of the surety under the bond?
Who may make claims against the bond?
What must I do if there are claims against the bond?
What is the amount of bond needed for licensees engaging only in check selling?
What is the amount of bond needed if a licensee has a small loan endorsement?
Do I have any alternative to maintaining a surety bond?
When and under what circumstances may the director have access to the criminal history of an applicant or licensee, or controlling person?
LICENSING FEES
Does a licensee have to pay a fee for a license application?
How much are the fees for various license applications, and when does a licensee pay them?
What happens if a licensee pays a lump sum payment in advance, and there is a surplus or deficiency in the application deposit?
Is the licensee's deposit fee refundable?
EXAMINATION AND INVESTIGATION
What examination authority does the director have?
May the director accept other reports in lieu of an examination?
What should a licensee expect the director to review during an examination?
Who pays for the costs of an examination?
When may the director conduct an investigation?
What powers does the director have during an investigation?
What are the fees for an investigation?
May the director hire other specialists to assist with examinations and investigations, and who will pay for them?
ANNUAL ASSESSMENTS
Once licensed, what fees must a licensee pay to keep a license current?
How can a license be reinstated after it expires?
When may the director waive fees?
SMALL LOAN REQUIREMENTS
(PAYDAY LENDING)
What is the maximum amount that all licensees may lend to a borrower?
What documentation is acceptable as proof of the borrower's gross monthly income?
What is the maximum number of small loans that may be made to a single borrower in any twelve-month period?
What documentation is acceptable as proof of the borrower's identity?
What fees can I charge on a small loan?
What types of information must a licensee include on a borrower's application for a small loan?
How must a licensee maintain customer small loan applications?
What information must the note or small loan agreement contain?
When must a licensee provide a note or small loan agreement to the borrower?
How must I determine the due date on the loan?
What process must I follow when a borrower pays off a small loan, or makes a payment toward an installment plan, with cash?
What are my obligations if the borrower notifies me that he or she will be or is unable to pay the small loan on time?
When does a borrower have a right to enter into an installment plan?
If a borrower and licensee enter into an installment plan, what are the terms of the installment plan?
If a borrower and licensee enter into an installment plan, how must the payments be structured?
May I charge any fees if a borrower decides to convert their loan to an installment plan?
May I make a small loan to a borrower who is in default on another small loan?
May I make a small loan to a borrower who is in an installment plan?
What duties and restrictions must a licensee comply with when making loans to military borrowers?
What fees may I charge or collect when a borrower defaults on a small loan?
What are the specifications required of the communication log in RCW 31.45.082(4)?
May I allow a borrower to refinance a small loan with another small loan?
May I use a name or place of business other than that named on the license or small loan endorsement?
What is the limit on the number of checks I may hold from one borrower?
May I continue to hold the borrower's original check or ACH authorization once the borrower has converted the loan to an installment plan?
May I hold postdated checks for the installment plan payments?
May I charge the borrower additional fees if the borrower defaults on an installment plan?
May I charge a fee to cash monetary instruments I issue as proceeds of a small loan?
What is the purpose of the data base?
How do I use the data base system for small loan transactions?
What disclosures must I make to a borrower?
What must be included in the disclosure referred to in WAC 208-630-560(2)?
In addition to providing disclosures to the borrower, must I post any disclosures?
How must I format disclosures?
What documentation must a licensee keep to show that the licensee has made the proper disclosures?
Must I provide any information about the changes to the law to borrowers?
REQUIREMENTS FOR ALL LICENSEES
What accounting and financial records must I keep?
In what form must a licensee maintain accounting and financial records?
May the director ask a licensee for records regarding the previous day's transactions?
What specific accounting records must a licensee maintain?
May a licensee maintain a consolidated general ledger if the licensee has two or more locations?
What must a licensee have in employees' personnel files?
If I have a small loan endorsement on my license, what information must I keep in every loan file?
Are there specific banking requirements for check sellers?
When must a check casher deposit a monetary instrument?
When may I deposit a monetary instrument accepted in the course of making a small loan?
What other federal and state laws and regulations must a licensee comply with?
What are the minimum requirements of a policy that protects borrowers' nonpublic personal information (NPI) under the Gramm-Leach-Bliley Act?
When must a licensee obtain identifying information about its customers?
Is a licensee required to register as a money service business with the Secretary of the Treasury?
If a licensee is considered a money service business (MSB) under the Bank Secrecy Act (see WAC 208-630-720), what are the minimum requirements for the anti-money laundering program the licensee must develop?
What records and actions does a licensee need to take to assure the licensee is correctly reporting under the Bank Secrecy Act?
What obligation do I have to assure that employees comply with the laws and rules regarding payday lending and check cashing and selling?
PROHIBITED PRACTICES
What business practices are prohibited?
REPORTING REQUIREMENTS
What are my annual reporting requirements?
What happens if I am late filing the annual reports and paying the annual assessment?
When must I inform the director of significant changes in my business?
When ceasing business, what information must I file before I close the business?
Who may a licensee hire to prepare the financial statements in the annual report?
As a check seller what must I report when my license is surrendered or revoked?
If I am not a check seller what must I report when my license is surrendered or revoked?
May I request an extension of time to comply with the reporting requirements?
Under what circumstances would a licensee submit unaudited financial statements to the director?
When may the director reject financial statements and other reports submitted to the director by the licensee?
How much time does a licensee have to correct the deficiency in financial statements or other reports?
What trust accounting requirements must a I comply with?