Missouri Laws 367.525 – Notice to borrower prior to acceptance of title loan application
1. Before accepting a title loan application, the lender shall provide the borrower the following notice in at least ten-point bold type and receipt thereof shall be acknowledged by signature of the borrower:
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| (Name of Lender) | |||
| NOTICE TO BORROWER | |||
| (1.) | Your automobile title will be pledged as security for the loan. If the loan is not repaid in full, including all finance charges, you may lose your automobile. | ||
| (2.) | This lender offers short-term loans. Please read and understand the terms of the loan agreement before signing. | ||
| I have read the above “NOTICE TO BORROWER” and I understand that if I do not repay this loan that I may lose my automobile. | |||
| __________________? | |||
| Borrower | |||
| __________________? | |||
| Date | |||
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2. If the loan is secured by titled personal property other than an automobile, the lender shall either provide a form with the proper word describing the security or else shall strike the word “automobile” from the three places it appears, write or print in the type of titled personal property serving as security and have the customer initial all three places.
Terms Used In Missouri Laws 367.525
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- Personal property: All property that is not real property.
- Personal property: includes money, goods, chattels, things in action and evidences of debt. See Missouri Laws 1.020
3. The title lender shall post in a conspicuous location in each licensed office, in at least fourteen-point bold type the maximum rates that such title lender is currently charging on any loans made and the statement:
NOTICE:
Borrowing from this lender places your automobile at risk. If this loan is not repaid in full, including all finance charges, you may lose your automobile.
This lender offers short-term loans. Please read and understand the terms of the loan agreement before signing.
4. When making or negotiating loans, the title lender shall take into consideration in determining the size and duration of a loan contract the financial ability of the borrower to reasonably repay the loan in the time and manner specified in the loan contract.