Section 367.518

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 367

Effective - 28 Aug 2002, 2 histories   

  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.

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