367.518. Title loan agreements, contents, form.

258 words·~1 min read·/mo/chapter-367/367-518

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

367.518. Title loan agreements, contents, form. — 1. Each title loan agreement shall disclose the following:

(1)All disclosures required by the federal Truth in Lending Act and regulation Z;

(2)That the transaction is a loan secured by the pledge of titled personal property and, in at least ten-point bold type, that nonpayment of the loan may result in loss of the borrower's vehicle or other titled personal property;

(3)The name, business address, telephone number and certificate number of the title lender, and the name and residential address of the borrower;

(4)The monthly interest rate to be charged;

(5)A statement which shall be in at least ten-point bold type, separately acknowledged by the signature of the borrower and reading as follows:

You may cancel this loan without any costs by returning the full principal amount to the lender by the close of the lender's next full business day;

(6)The location where the titled personal property may be delivered if the loan is not paid and the hours such location is open for receiving such deliveries; and

(7)Any additional disclosures deemed necessary by the director or required pursuant to sections 400.9-101 to 400.9-710 .

2. The division of finance is directed to draft a form to be used in title loan transactions. Use of this form is not mandatory; however, use of such form, properly completed, shall satisfy the disclosure provisions of this section.

--------

(L. 1998 H.B. 1526 § 7, A.L. 2001 H.B. 738 merged with S.B. 186, A.L. 2002 S.B. 895)