§ 2252. Disclosures.
239 words·~1 min read·
/de/title-5/chapter-22-licensed-lenders/subchapter-v-title-loans/2252·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
No licensee shall make a title loan without providing to the borrower, before the borrower signs the loan agreement, all of the following written disclosures in a conspicuous format:
(1)“The loan you are considering entering into is strictly for short-term cash, and is not a solution for long-term financial problems.”
(2)“You, as borrower, are not compelled to complete the loan agreement merely because you have received any disclosures.”
(3)“If you sign the title loan agreement, the title loan lender will obtain a security interest in your motor vehicle, and if you fail to meet the obligations of the title loan agreement, the lender can take possession of your motor vehicle and sell it.”
(4)“If the lender takes possession of your motor vehicle, you may lose equity in that vehicle.”
(5)“You have a right to rescind the title loan agreement for any reason, at no cost to you, at any time up to the end of the business day following the day in which the loan proceeds of the title loan were disbursed to you by returning the full amount of the loan proceeds to the title lender.”
(6)“You have the right to receive information about credit counseling services from the Office of the State Bank Commissioner.”
(7)“You may file a complaint with the Office of the State Bank Commissioner if you believe your lender has violated any law regarding your title loan.”