Businesses regularly making consumer leases must also file notification and pay notification fees. Sales finance companies that purchase or take assignment of consumer credit sales and consumer lease contracts, and collect payments or enforce rights from those contracts, must also file notification and pay notification fees. Sales finance companies must pay a notification fee regardless of the number of days they hold and collect the contracts. Notification Fees and Due Dates Creditors required to file notification and pay notification fees must do so within 30 days of first entering into the activity and by January 31 of each year thereafter. In addition, there may be a volume fee based on the prior year's business.
Fees are subject to change.
Once a business files initial notification, it will receive annual notification forms prior to the January 31 due date. Failure to file the required notification form and pay the appropriate fee may result in financial penalties and the inability to extend credit. A loan is distinguished from other credit transactions by the lender's direct extension of funds to the borrower without also selling goods or services. A lender is regularly engaged in supervised lending if it has made, collected, or taken assignment of more than 25 loans, or more than 5 real estate secured loans, in the current or prior calendar year. Supervised loans include both secured and unsecured consumer loans, home equity loans and other junior lien mortgages, insurance premium financing, deferred deposit loans, credit cards, and first mortgage loans for purposes other than the purchase or refinancing of a home.