§ 9:3557 — Authority to make consumer loans

§3557. Authority to make consumer loans
A. Unless a person has first obtained a license from the commissioner as provided
under this Part, he shall not engage in the business of:
(1) Making consumer loans; or
(2) Making loans with the use of a lender credit card or similar arrangement.
B. A creditor may not take assignments of and undertake direct collection of
payments from or enforce rights against consumers arising from consumer loans, without
first having obtained a license from the commissioner as provided under this Part. A creditor
may, however, collect and enforce consumer loan obligations of which he has taken
assignment for three months without a license if he notifies the commissioner in writing of
his intention to take assignments of consumer loans, including the name and address of the
proposed assignee and assignor, the number of loans assigned, the dollar amount of the
assignment, and other information the commissioner requires at least ten days prior to the
time the assignment is made, and the commissioner has not objected, and such creditor
promptly applies for a license and his application has not been denied.
C. Any person licensed under this Part shall not engage in the business of
originating, lending, or brokering any loan primarily for personal, family, or household use
that is secured by a mortgage, deed of trust, or other equivalent consensual security interest
on a dwelling as defined in 15 U.S.C. §1602(v) or on residential immovable property upon
which is constructed or intended to be constructed a dwelling, unless such person has also
obtained a license pursuant to the Louisiana S.A.F.E. Residential Mortgage Lending Act,
R.S. 6:1081 et seq.

Legislative History

Added by Acts 1972, No. 454, §1, eff. Jan. 1, 1973; Acts 1986, No. 584, §1, eff. July 2, 1986; Acts 1992, No. 370, §1; Acts 1995, No. 1184, §2; Acts 2009, No. 522, §2, eff. July 31, 2009; Acts 2014, No. 636, §1, eff. Jan. 1, 2015.