7-24-202. Operational requirements for title loans.

613 words·~3 min read·/ut/title-7/chapter-24/7-24-202

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

(1)A title lender shall:

(a)post in a conspicuous location on its premises that can be viewed by a person seeking a title loan:

(i)a complete schedule of any interest or fees charged for a title loan that states the interest and fees:

(A)as dollar amounts; and

(B)as annual percentage rates; and

(ii)a telephone number a person may call to make a complaint to the department regarding a title loan;

(b)enter into a written contract for the title loan containing:

(i)the name of the person receiving the title loan;

(ii)the transaction date;

(iii)the amount of the title loan;

(iv)a statement of the total amount of any interest or fees that may be charged for the title loan, expressed as:

(A)a dollar amount; and

(B)an annual percentage rate; and

(A)the name and address of the designated agent required to be provided the department under Subsection 7-24-201(2)(d)(vi) ; and

(B)a statement that service of process may be made to the designated agent;

(c)provide the person seeking the title loan a copy of the written contract described in Subsection (1)(b) ;

(d)prior to the execution of the title loan:

(i)orally review with the person seeking the title loan the terms of the title loan including:

(A)the amount of any interest rate or fee, expressed as:

(I)a dollar amount; and

(II)an annual percentage rate; and

(B)the date on which the full amount of the title loan is due; and

(ii)provide the person seeking the title loan a copy of the disclosure form adopted by the department under Section 7-24-203 ; and

(e)comply with the following as in effect on the date the title loan is extended:

(i)Truth in Lending Act, 15 U.S.C. Sec. 1601 et seq., and its implementing federal regulations;

(ii)Equal Credit Opportunity Act, 15 U.S.C. Sec. 1691, and its implementing federal regulations;

(iii)Bank Secrecy Act, 12 U.S.C. Sec. 1829b, 12 U.S.C. Sec. 1951 through 1959, and 31 U.S.C. Sec. 5311 through 5332, and its implementing regulations; and

(iv)Title 70C, Utah Consumer Credit Code .

(2)If a title lender extends a title loan through the Internet or other electronic means, the title lender shall:

(a)provide the information described in Subsection (1)(a) to the person receiving the title loan:

(i)in a conspicuous manner; and

(ii)prior to the person entering into the title loan; and

(b)in connection with the disclosure required under Subsection (2)(a) , provide a list of states where the title lender is registered or authorized to offer title loans through the Internet or other electronic means.

(3)A title lender may not:

(a)rollover a title loan unless the person receiving the title loan requests a rollover of the title loan;

(b)extend more than one title loan on any vehicle at one time;

(c)extend a title loan that exceeds the fair market value of the vehicle securing the title loan; or

(d)extend a title loan without regard to the ability of the person seeking the title loan to repay the title loan, including the person's:

(i)current and expected income;

(ii)current obligations; and

(iii)employment.

(4)A title lender has met the requirements of Subsection (3)(d) if the person seeking a title loan provides the title lender with a signed acknowledgment that:

(a)the person has provided the title lender with true and correct information concerning the person's income, obligations, and employment; and

(b)the person has the ability to repay the title loan.

Amended by Chapter 87 , 2007 General Session