Current through Register Vol. 24-18, September 15, 2024
(1) Beginning
January 1, 2010, each small loan transaction must be registered with the data
base system and receive a data base system-generated transaction authorization
number. The transaction authorization number demonstrates that the transaction
has been recorded in the data base prior to you making the small loan to the
borrower.
(2)
Do I have to
buy any equipment, hardware, or software to use the data base system?
You must have a computer with access to the internet and Microsoft Internet
Explorer 6 or higher. Dial-up capacity of at least 56 kps is sufficient. DSL or
broadband access will provide faster access and response. It is also possible
to interface directly with the data base system; the data base vendor can
provide you with information about that process.
(3)How and when may I access the data
base system?
(a)The data base system is
the means by which real-time access to the data is made available to you
through your internet connection.
(b)You must use a computer and the internet
to access the data base system.
(c)The data base system will be accessible
twenty-four hours a day every day of the year, except for routine scheduled
system maintenance and upgrades performed by the data base vendor.
(4)What must I do to
maintain confidentiality of the borrower's information provided to the data
base? In order to maintain the confidentiality and security of the
borrower's information, you must not transmit information to the data base
system using publicly accessible computers, computers that are not under your
control, unsecured wireless connections, or other connections that are not
secure. Maintaining a secure connection includes, but is not limited to,
installing and regularly updating antivirus and antispyware software and a
firewall.
(5)How do I use
the data base system to determine a borrower's eligibility for a small
loan? You must:
(a)Access the data
base system using the assigned user identification and password provided by the
security administrator of your company;
(b)Enter the borrower's Social Security
number, individual tax identification number (ITIN), or alien identification
number, and the borrower's gross monthly income into the system.
(6)What information will the
data base system give me when an eligibility search is conducted? The
data base system will state a borrower's eligibility or ineligibility for a
small loan and will give a reason for the eligibility determination. If the
borrower is eligible for a small loan, the data base system will provide the
dollar amount the borrower is eligible to receive.
(7)What must I do once the initial
search determines that the borrower is eligible for a small loan?
(a)If you receive an initial indication from
the data base vendor that the borrower is eligible for a small loan, you must
then submit all of the required borrower information necessary to register the
transaction in the data base, as prescribed by the date base vendor.
(b)When the required information has been
submitted to the data base, the data base system will confirm the initial
borrower search. If the borrower's eligibility is confirmed, the small loan
transaction will be recorded as open and assigned a transaction authorization
number evidencing that the transaction has been authorized by the data base
system. You must place the transaction authorization number on the small loan
agreement.
(8)What
must I do if the borrower is determined to be ineligible for a small
loan? If the borrower is deemed ineligible you will be provided with a
printable message with a reason for the determination. The message will also
include the name, address, and toll-free support number of the data base
vendor. You must provide a copy of the printable message to the
borrower.
(9)If I make a
mistake entering data and must void the transaction, what do I do?
Follow the data base vendor's instructions to administratively void the
transaction.
(10)
If the data
base system is inaccessible via the internet, how do I access the data
base?
(a)You will be given at least
twenty-four hours notice for scheduled maintenance or system upgrades. The
notice will be by electronic mail to the designated security administrator, or
by a broadcast message on the data base vendor's web site.
(b)In the event the data base system is
unavailable, you must adhere to the following procedures:
(i) Confirm that the data base system remains
unavailable by attempting to access the data base system with every borrower
seeking a new small loan transaction. You need not comply with this procedure
if you have been notified via electronic mail by the data base vendor of an
expected period of time necessary to correct whatever problem is causing the
data base system to remain unavailable;
(ii) Contact the data base vendor's toll-free
help desk or voice response system to obtain a temporary transaction
authorization number directly from the data base vendor; and
(iii) Enter the remaining transactional data
into the data base system within twenty-four hours of obtaining the temporary
transaction authorization number from the data base vendor.
(c) In the event that either the
department of financial institutions or the data base vendor notifies you that
the data base system is unavailable and that all alternative methods for
registering a transaction and receiving a transaction authorization number are
also unavailable:
(i) You are authorized to
conduct transactions during the specific period of unavailability, after
receiving written authorization, via electronic mail or facsimile from either
the department of financial institutions or the data base vendor with the
department of financial institutions' consent.
(ii) Copies of the written authorization for
any transactions conducted during an unavailability period must be attached to
the small loan agreement for those transactions. One copy of the authorization
must be provided to the borrower and another copy must be kept as an audit
record.
(d) Transactions
created during a period of authorized unavailability must be registered with
the data base within twenty-four hours of notification that the data base
system is available; provided, however, that if the data base system is
unavailable for more than twenty-four hours, then the period for registration
shall be extended by twenty-four hours for each additional twenty-four-hour
period of unavailability.
(e)Once
the transaction has been registered with the data base, the transaction number
assigned to that transaction must be placed on the licensee's record copy of
the small loan agreement signed by the borrower for that transaction. If the
borrower requests that transaction number at any time, the licensee must
provide it to the borrower.
(11)Once a loan is made, how can it be
canceled or rescinded as authorized under
RCW
31.45.086? A borrower may rescind a
small loan agreement before the close of business on the next day of business
after the date of the transaction without incurring a transaction fee. If a
borrower elects to cancel a small loan agreement you must close the transaction
on the data base as soon as practicable after the borrower rescinds the small
loan transaction. A loan that has been rescinded does not count toward the
eight loan limit; nor will you incur a one dollar transaction fee on that loan.
For the purpose of rescinding a loan, the date of the transaction is the date
the borrower actually receives the proceeds either in person or by direct
deposit or other electronic transfer of funds into the borrower's bank
account.
(12)
When must I
update information on the data base system?
(a) When a borrower's small loan is paid
(date of cash received, check deposited, or ACH authorization initiated), you
must update open transactions on the data base system as soon as practicable to
ensure that all identifying information regarding both the borrower and the
transaction are accurate, including any comments on the transaction which you
deem relevant. You must input the date and time a transaction closes, as well
as the payment method, unless you previously entered the payment
method.
(b)When a small loan that
was in default is paid, it is considered paid when the loaned amount and
default fee is paid.
(c)When a loan
is in default, you must mark the loan in the data base as in default as soon as
practicable after the default as follow:
(i)
A small loan is in default if not paid on the date and by the time indicated in
the small loan agreement. If no time is indicated the small loan is in default
the first day after the due date.
(ii) A small loan in an installment plan is
in default if unpaid on the 11th day after the due date, with the due date
being day zero. If the due date for an installment plan payment is January 1st
and is not paid, the loan is considered in default and the data base must be
updated on January 11th.
(d)When you receive formal notice that a
small loan has been discharged in bankruptcy you must close the loan as having
been paid, leaving a comment in the comment box about the bankruptcy. Do not
administratively close the loan. The loan must continue to count toward the
borrower's eight loan limit.
(13)How much will each data base
transaction cost me? The data base vendor's transaction fee is one
dollar per loan registered. The data base vendor will assess this fee for each
transaction that has been registered on the data base.
(14)What happens if I do not pay the
data base fees to the data base vendor? The data base vendor will lock
you out of the data base system.
(15)
What happens if I do not receive
training and become certified in using the data base? If you or another
designated person in the company do not receive training and certification to
use the data base, you will not be given an access number for the data
base.
Statutory Authority:
RCW
43.320.040,
31.45.200, and 2009 c 510.
09-24-089, §
208-630-556, filed 12/1/09,
effective 1/1/10.
