Sec. 202. (1) Notwithstanding any other law, the only fee that may be contracted for and received by the lender or an assignee on a small loan is a charge, not to exceed twenty-five dollars ($25), for each:

(a) return by a bank or other depository institution of a dishonored:

Terms Used In Indiana Code 24-4.5-7-202

  • Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
(i) check;

(ii) electronic funds transfer;

(iii) negotiable order of withdrawal; or

(iv) share draft;

issued by the borrower; or

(b) time an authorization to debit the borrower’s account is dishonored.

This additional charge may be assessed one (1) time regardless of how many times a check or an authorization to debit the borrower’s account may be submitted by the lender and dishonored.

     (2) A lender may:

(a) present a borrower’s check for payment; or

(b) exercise a borrower’s authorization to debit the borrower’s account;

not more than three (3) times.

As added by P.L.38-2002, SEC.1. Amended by P.L.73-2004, SEC.24; P.L.213-2007, SEC.24; P.L.217-2007, SEC.23; P.L.90-2008, SEC.14; P.L.60-2016, SEC.4; P.L.69-2018, SEC.26.

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