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Financial Services Law Insights and Observations

Oklahoma law allows lenders to charge convenience fees for electronic payments

State Issues State Legislation Consumer Lending Electronic Payments Fees

State Issues

On April 25, the Oklahoma governor signed into law an act that allows lenders to charge borrowers convenience fees for making payments via debit card, electronic funds transfer, electronic checks or other electronic means. SB 1151 provides that the nonrefundable fees shall not exceed the lesser of (i) the actual third party costs incurred by the lender for accepting and processing electronic payments; and (ii) four percent of the electronic payment transaction. Lenders must notify borrowers of the amount of the fee prior to completing a transaction and provide an opportunity to cancel the transaction without a fee. The law takes effect November 1.