Utah Code 7-24-202. Operational requirements for title loans
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(1) A title lender shall:
Terms Used In Utah Code 7-24-202
- Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
- Bank: means a person authorized under the laws of this state, another state, or the United States to accept deposits from the public. See Utah Code 7-1-103
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Department of Financial Institutions. See Utah Code 7-1-103
- Equal Credit Opportunity Act: Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program. Source: OCC
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Person: means :(27)(a) an individual;(27)(b) a corporation;(27)(c) a limited liability company;(27)(d) a partnership;(27)(e) a trust;(27)(f) an association;(27)(g) a joint venture;(27)(h) a pool;(27)(i) a syndicate;(27)(j) a sole proprietorship;(27)(k) an unincorporated organization; or(27)(l) any form of business entity. See Utah Code 7-1-103
- Rollover: means the extension or renewal of the term of a title loan. See Utah Code 7-24-102
- Service of process: The service of writs or summonses to the appropriate party.
- Title lender: includes a person that:
(3)(b)(i) arranges a title loan on behalf of a title lender;(3)(b)(ii) acts as an agent for a title lender; or(3)(b)(iii) assists a title lender in the extension of a title loan. See Utah Code 7-24-102- Title loan: includes a title loan extended at the same premise on which any of the following are sold:
(4)(b)(i) a motor vehicle, as defined in Section 41-6a-102;(4)(b)(ii) a mobile home, as defined in Section 41-6a-102; or(4)(b)(iii) a motorboat, as defined in Section 73-18-2. See Utah Code 7-24-102- Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC
(1)(a) post in a conspicuous location on its premises that can be viewed by a person seeking a title loan:(1)(a)(i) a complete schedule of any interest or fees charged for a title loan that states the interest and fees:(1)(a)(i)(A) as dollar amounts; and(1)(a)(i)(B) as annual percentage rates; and(1)(a)(ii) a telephone number a person may call to make a complaint to the department regarding a title loan;(1)(b) enter into a written contract for the title loan containing:(1)(b)(i) the name of the person receiving the title loan;(1)(b)(ii) the transaction date;(1)(b)(iii) the amount of the title loan;(1)(b)(iv) a statement of the total amount of any interest or fees that may be charged for the title loan, expressed as:(1)(b)(iv)(A) a dollar amount; and(1)(b)(iv)(B) an annual percentage rate; and(1)(b)(v)(1)(b)(v)(A) the name and address of the designated agent required to be provided the department under Subsection 7-24-201(2)(d)(vi); and(1)(b)(v)(B) a statement that service of process may be made to the designated agent;(1)(c) provide the person seeking the title loan a copy of the written contract described in Subsection (1)(b);(1)(d) prior to the execution of the title loan:(1)(d)(i) orally review with the person seeking the title loan the terms of the title loan including:(1)(d)(i)(A) the amount of any interest rate or fee, expressed as:(1)(d)(i)(A)(I) a dollar amount; and(1)(d)(i)(A)(II) an annual percentage rate; and(1)(d)(i)(B) the date on which the full amount of the title loan is due; and(1)(d)(ii) provide the person seeking the title loan a copy of the disclosure form adopted by the department under Section 7-24-203; and(1)(e) comply with the following as in effect on the date the title loan is extended:(1)(e)(ii) Equal Credit Opportunity Act, 15 U.S.C. § 1691, and its implementing federal regulations;(1)(e)(iii) Bank Secrecy Act, 12 U.S.C. § 1829b, 12 U.S.C. § 1951 through 1959, and 31 U.S.C. § 5311 through 5332, and its implementing regulations; and(1)(e)(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:(2)(a) provide the information described in Subsection (1)(a) to the person receiving the title loan:(2)(a)(i) in a conspicuous manner; and(2)(a)(ii) prior to the person entering into the title loan; and(2)(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:(3)(a) rollover a title loan unless the person receiving the title loan requests a rollover of the title loan;(3)(b) extend more than one title loan on any vehicle at one time;(3)(c) extend a title loan that exceeds the fair market value of the vehicle securing the title loan; or(3)(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:(3)(d)(i) current and expected income;(3)(d)(ii) current obligations; and(3)(d)(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:(4)(a) the person has provided the title lender with true and correct information concerning the person’s income, obligations, and employment; and(4)(b) the person has the ability to repay the title loan.