North Dakota passed a bill amending the Money Brokers Act (MBA). Under the Bill, a lender licensed under the MBA may not collect finance charges in excess of 36% (including all charges and fees necessary for the extension of credit incurred at the time of origination). The bill also prohibits a lender from charging a late fee that exceeds 5% of the payment. If the original balance of the loan is $50,000 or less, the late fee may not exceed $20 for each nonpayment or late payment. In addition, the bill adds an exemption to the MBA for certain nonprofit entities. The bill becomes effective August 1, 2021.
Click to view the full bill: https://www.tenaco.com/wp-content/uploads/2021/07/ND-SB-2103-04-20-21.pdf
