2013 Maryland Code
COMMERCIAL LAW
§ 14-3804 - Written disclosures and loan procedures.

§14-3804.

(a) At the time a consumer applies through a facilitator for a refund anticipation loan, the facilitator shall disclose to the consumer, on a form that is separate from the application, in 14 point type, the following:

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

(2) The annual percentage rate payable on the refund anticipation loan;

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

(4) A legend, centered and in bold capital letters in 18 point type, stating:

“NOTICE”; and

(5) 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 tax refund is delayed, you may have to pay additional costs. You usually can get your tax refund in 8 to 15 days without getting a loan or paying extra fees. You can have your tax return filed electronically and your tax refund direct deposited into your bank account without obtaining a loan or other paid product.”.

(b) The annual percentage rate for a refund anticipation loan shall be calculated using the guidelines established under the federal Truth in Lending Act.

(c) At the time a consumer applies through a facilitator for a refund anticipation check, the facilitator shall disclose to the consumer, on a form that is separate from the application, in 14 point type, the following:

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

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

(3) A legend, centered and in bold capital letters in 18 point type, stating:

“NOTICE”; and

(4) The statement:

“You are paying (amount of refund anticipation check fee) to get your tax refund check through (name of issuer of the refund anticipation check). You can avoid this fee and still receive your tax refund in the same amount of time by having your tax refund direct deposited into your bank account. You also can wait for the Internal Revenue Service to mail you a tax refund check.”.

(d) Before completing a refund anticipation loan or refund anticipation check transaction, a facilitator shall provide to a consumer, in a form that can be retained by the consumer, the following:

(1) The disclosures required by this section;

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

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

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