2010 Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 7 - Consumer Protection
Chapter 116 - Refund Anticipation Loan Act
§ 4-116-105 - Application disclosures.

4-116-105. Application disclosures.

(a) When a consumer applies for a refund anticipation loan, the facilitator shall disclose to the consumer on a colored-paper form separate from the application in 14-point type face, the following information:

(1) The fee for the refund anticipation loan, including the fee for the tax preparation and other fees charged the consumer;

(2) The time within which the proceeds of the refund anticipation loan will be paid to the consumer if the loan is approved;

(3) For refund anticipation loans, the following disclosures:

(A) A legend, centered, in bold, capital letters, and in 18-point type stating: "NOTICE"; and

(B) The statement: "This is a loan. You are borrowing money against your tax refund. If your tax refund is less than expected, you will still owe the entire amount of the loan. If your refund is delayed, you may have to pay additional costs. YOU CAN USUALLY GET YOUR REFUND IN 8 TO 15 DAYS WITHOUT GETTING A LOAN OR PAYING EXTRA FEES. You can have your tax return filed electronically and your refund direct deposited into your bank account without obtaining a loan or other paid product."; and

(4) (A) For refund anticipation loans, disclosure of the refund anticipation loan interest rate.

(B) The refund anticipation loan interest rate shall be calculated utilizing the guidelines established under the federal Truth in Lending Act, 15 U.S.C. 1601 et seq., as it existed on January 1, 2009.

(b) If a consumer applies for a refund anticipation check, the facilitator shall disclose to the consumer on a colored-paper form separate from the application in 14-point type face, the following information:

(1) The fee for the refund anticipation check, including the fee for tax preparation and other fees charged the consumer;

(2) The time within which the proceeds of the refund anticipation check will be paid to the consumer; and

(3) The following disclosures:

(A) A legend, centered, in bold, capital letters, and in 18-point type stating: "NOTICE"; and

(B) The statement: "You are paying [amount of refund anticipation check fee] to get your refund check through [name of issuer of the refund anticipation check]. YOU CAN AVOID THIS FEE AND STILL RECEIVE YOUR REFUND IN THE SAME AMOUNT OF TIME BY HAVING YOUR REFUND DIRECTLY DEPOSITED INTO YOUR BANK ACCOUNT. You can also wait for the Internal Revenue Service to mail you a check."

(c) The facilitator shall provide to the consumer before completing the loan or check transaction in a form that can be kept by the consumer the following:

(1) The disclosures required by this subsection;

(2) A copy of the completed loan or check application and agreement; and

(3) For refund anticipation loans, the disclosures required by the federal Truth in Lending Act.

(d) The disclosures required by this section shall be provided in English and in the language used primarily for oral communication between the facilitator and the consumer.