2006 Utah Code - 7-24-202 — Operational requirements for title loans.

     7-24-202.   Operational requirements for title loans.
     (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; and
     (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;
     (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 in a conspicuous manner prior to the completion of 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:

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     (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 165, 2006 General Session